Amazon will continue to draw investor demand this year, despite making record-level investments, wrote in a note published Friday.
The investment bank didn't change its $1,250 price target for Amazon, but reiterated its prediction of $2,000 per share — or roughly a $1 trillion market cap — under its "bull case" scenario.
It gave the three following reasons for its bullish position on Amazon:
Under its $2,000 per share "bull case" scenario, which would get Amazon to the $1 trillion market cap milestone, Morgan Stanley estimates the core retail business to be worth $600 billion and the AWS cloud $273 billion. It forecasts Amazon's advertising business to get to $55 billion, while its subscription business would become worth $69 billion.