Time to Take Profits on Amazon (AMZN) Stock, Says Morgan Stanley

Michael LaVere
  • Morgan Stanley analysts published a note on Monday encouraging investors to take profits on Amazon stock.
  • AMZN has benefited from the coronavirus's stay-at-home orders, but Morgan Stanley predicts the run has played out. 

Analysts from investment firm Morgan Stanley claim the run on Amazon (AMZN) stock has come to an end after benefiting from nation-wide stay-at-home policies. 

Online retailing giant Amazon has been one of the few beneficiaries of the stay-at-home ordinance enacted in response to the ongoing coronavirus pandemic. Amazon stock (AMZN) is up 27% year-to-date and 17.71% compared to the S&P 500, with share prices rising an additional 1.4% on Monday. 

Despite the rally, Morgan Stanley published a note on April 20 claiming the stay-at-home boost for Amazon has “played out for the most part.” The investment firm’s analysts noted Amazon shares have already exceeded its price target of $2,400 per share and removed AMZN from its Fresh money List. 

Amazon Stock priceSource: Google

Morgan Stanley was bullish on the long-term outlook for Amazon shares but expected there to be risks to watch for in Amazon’s earnings report at the end of the month. 

Last week Mizuho Securities analyst James Lee slashed his price target for Amazon, dropping the outlook from $2,350 to $2,300. Lee argued that Amazon’s highly profitable digital advertising business will be negatively impacted by the coronavirus, even if online sales have jumped. 

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