Three reasons why an Amazon TV set could be a winner for the stock, says Morgan Stanley

Published Tue, Sep 7 202111:58 AM EDTUpdated Tue, Sep 7 202112:07 PM EDT

An Amazon-branded TV could boost the e-commerce giant's growth, Morgan Stanley said in a note Tuesday. Amazon is preparing to roll out its own television sets in the U.S. as soon as October, Business Insider reported last week. The TV would integrate with Amazon's Alexa voice assistant, the report said. Amazon has not confirmed the report. CNBC has reached out to the company for comment. If the company does launch a self-branded TV, the product could help it continue to dominate in retail and advertising, Morgan Stanley said. Here are three ways an Amazon TV could "be a needle mover," according to Morgan Stanley. 1. More Alexa in your living room Amazon has already established a presence in the home with products like Fire TV and Echo. An Alexa-enabled TV could enhance Amazon's smart-home capabilities. "If executed correctly, the potential to control devices throughout your home with voice while sitting on the living room couch could be a meaningful consumer unlock," Morgan Stanley's Brian Nowak said in the note. A TV could increase customer touchpoints and data points with Amazon smart-home products, "further deepening its ecosystem moats," Nowak said. 2. Voice-based shopping An Amazon TV with Alexa capabilities could help the company push consumer behavior toward voice-based shopping by allowing people to simultaneously browse products visually. "People like to see what they are shopping for/comparing/buying," Nowak said. Using a TV to complement voice-based spending could help remove friction for consumers, similar to how Amazon's one-click shopping improved user experience on desktop and mobile, according to Nowak. 3. Connected TV advertising Connected TV advertising are ads placed on smart TVs, or televisions connected to the internet. Morgan Stanley views Amazon as among the corporations best-positioned to lead the connected TV advertising industry in the next five years, along with Big Tech peer Alphabet . "We look for AMZN and GOOGL to develop improved user targeting and performance-driven [connected TV] ad tools to deliver a more transaction driven TV advertising offering," Nowak said. Amazon's Fire TV stocks and Prime Video users have laid a foundation for connected TV advertising, and Morgan Stanley believes a self-branded TV is "the next step" for the corporation. The connected TV advertising market is worth $800 billion, according to Morgan Stanley. —CNBC's Michael Bloom contributed reporting.

REUTERS/Pascal Rossignol

An Amazon-branded TV could boost the e-commerce giant's growth, Morgan Stanley said in a note Tuesday.