Latest news with #BrianNowak
Business Insider
7 hours ago
- Business
- Business Insider
AMZN, GOOGL, META: Morgan Stanley Picks the Biggest Beneficiary of Trump's Tax Bill
Morgan Stanley's top analyst, Brian Nowak, stated in a research note that U.S. President Donald Trump's ' One Big Beautiful Bill ' is expected to significantly boost the cash flows of tech giants Amazon (AMZN), Alphabet (GOOGL), and Meta (META). Importantly, Nowak noted that Amazon is poised to be the largest beneficiary among them, driving its dominance in the artificial intelligence (AI) world. The bill aims to provide immediate tax deductions on research & development and capital investments, offers incentives for domestic AI and tech development, extends permanent lower tax rates, and thus increases free cash flows (FCF). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Nowak maintained his Buy rating on AMZN stock with a price target of $300, which implies 29.6% upside potential from current levels. He ranks #806 out of the 9,922 analysts tracked on TipRanks. Nowak has a 61% success rate and an average return per rating of 6.80%. Amazon Is the Largest Beneficiary of the Bill The Big Beautiful Bill is expected to bring major tax reforms, giving a sizeable cash boost to tech companies focused on the AI space. According to Nowak, the FCF of Amazon, Meta, and Google is expected to increase by 30%, 22%, and 5%, respectively, by 2026. This cash windfall could give the three companies more flexibility to gain an edge in the generative AI race. Among them, Amazon is set to be the largest beneficiary of the bill because of its large investments in data centers, logistics, and R&D activities. Nowak projects that the bill could add $15 billion in Amazon's FCF between 2025 and 2027. Additionally, the company could benefit from another $11 billion in 2028. Notably, Nowak believes Amazon would reinvest a major part of these cash flows into its cloud services platform, Amazon Web Services (AWS), instead of passing them directly to shareholders. He stated that even if Amazon reinvests only 50% of the annual FCF into AWS, it could accelerate billions in automation savings for the company. Nowak concluded by stating, 'We see this more likely giving AMZN more flexibility to continue to invest and deepen its competitive moats and Generative AI offerings in retail (robotics, grocery, logistics, same day delivery, rural, etc.) and AWS (GPUs and other chips, power, infrastructure) … while also delivering more near-term FCF to investors.' Which Is the Better Tech Stock According to Analysts? We used the TipRanks Stock Comparison Tool to determine which stock is most favored by analysts. Currently, Wall Street has a 'Strong Buy' consensus rating on all three stocks, with AMZN stock offering the highest upside potential in the next 12 months.
Yahoo
2 days ago
- Business
- Yahoo
Why Morgan Stanley Thinks Alphabet's (GOOGL) Innovation Cycle Isn't Priced In Yet
Alphabet Inc. (NASDAQ:GOOGL) is one of the . On July 24, Morgan Stanley reiterated the stock as 'Overweight' and raised its price target to $210 per share from $205 following Alphabet's latest earnings report on Wednesday. Analyst Brian Nowak is optimistic about Google's accelerating cloud revenue growth and its updated AI-based engagement metrics. 'Search, YouTube and Google Cloud all accelerated as GenAI-enabled innovation is driving faster growth,' he wrote in a Thursday note to clients. 'Our EPS ests are largely unchanged (revenue higher offset by higher D & A/investment) but we remain OW as this accelerated pace of innovation sets up GOOGL for more durable multi-year growth.' A business person pointing to a graph displaying a company's projected EBITDA growth. Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
CNBC
5 days ago
- Business
- CNBC
Analysts react to Google parent Alphabet's robust second-quarter earnings
Analysts on the Street are impressed by Google parent Alphabet 's second-quarter results, with a handful raising their estimates on the stock. Alphabet on Wednesday exceeded top- and bottom-line estimates , and saw its overall revenue jump 14% year over year — higher than the 10.9% Wall Street expected. The company also expects more AI-related spending, lifting its capital expenditures forecast for 2025 due to "strong and growing demand for our Cloud products and services." The robust results quelled investors fears that the search engine giant's AI strategy is flailing compared to peers, particularly as chatbots such as OpenAI and Perplexity compete in the growing online search market. Several analysts reiterated their bullish ratings on shares while lifting their estimates, as they remain optimistic in Google's cloud growth and uptick in AI Overviews monthly users gains. Here's a look at what some had to say: Morgan Stanley reiterates overweight rating, lifts price target by $5 to $210 Analyst Brian Nowak is confident in Google's accelerating cloud revenue growth and the company's updated AI-based engagement metrics. His new price target suggests about 10.4% potential upside. "Search, YouTube and Google Cloud all accelerated as GenAI-enabled innovation is driving faster growth," he wrote in a Thursday note to clients. "Our EPS ests are largely unchanged (revenue higher offset by higher D & A/investment) but we remain OW as this accelerated pace of innovation sets up GOOGL for more durable multi-year growth." Goldman Sachs keeps buy rating, raises price target by $9 to $234 Analyst Eric Sheridan said he sees Alphabet as well-positioned in current and future computing landscapes. "We continue to be of the view (contrary to some negative investor sentiment currently) that Alphabet can successfully navigate the current multi-year evolution of its core Search product by leveraging its current strengths," Sheridan wrote in a note. "We found Alphabet mgmt team's commentary on the earnings call supportive of a multi-surface approach to AI ... In addition, we see the company's Cloud business as poised to benefit over the medium-to-long term." Deutsche Bank maintains buy rating, lifts price target by $15 to $215 Analyst Benjamin Black's price target suggests about 13% potential upside. Black increased his forward revenue growth forecast, driven by increased growth expectations in Google's search and cloud businesses. "Engagement with Alphabet's AI Overview (AIO) has been particularly strong, especially among younger users, driving incremental queries and demonstrating solid monetization, even at this early stage of adoption," the analyst said in a note. "AIOs have already reached over 2bn MAUs globally, and are contributing to over 10% of incremental query growth where available, which suggests there is significant room for upside as adoption increases." JPMorgan: reiterates overweight rating, raises price target by $32 to $232 JPMorgan's Doug Anmuth is sticking behind Alphabet after noting that Google AI search products have continued to scale. He added that although Google's 2025 capex outlook increased by $10 billion to $85 billion, he believes it is a strong sign of growing AI demand and "better ability for Google to invest given improving access to AI infrastructure." "Google delivered what we believe is a defining quarter w/32% Google Cloud revenue growth, increasing scale of AI search products, and greater benefits from AI across every part of the business," Anmuth said in a Thursday note. "We believe the combination of strong AI-driven Cloud demand and accelerating backlog makes Google Cloud a bigger driver of the bull case going forward."
Yahoo
6 days ago
- Business
- Yahoo
Why This Analyst Says Amazon Stock Is Still His ‘Top Pick'
Large-cap tech stocks have rebounded strongly from their April lows as easing tariff concerns and a more stable macroeconomic outlook reignite investor confidence. Among these giants, e-commerce and cloud titan Amazon (AMZN) continues to attract bullish sentiment, with analysts reaffirming its long-term growth potential. Morgan Stanley's senior analyst Brian Nowak recently reiterated Amazon as his 'top pick,' raising the stock's price target to $300 from $250, a 20% upward revision. In an accompanying research note, the firm cited a 'more manageable tariff and geopolitical backdrop' alongside improving macro conditions as key reasons for its renewed optimism on AMZN stock. More News from Barchart This Penny Stock Wants to Become the MicroStrategy of Dogecoin Opendoor Stock Is Surging Higher in a Frenzied Retail Rally. How Should You Play OPEN Shares Here? Robinhood Stock Stumbles as S&P 500 Inclusion Is Once Again Off the Table for HOOD Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. In short, the easing of trade tensions and brighter global growth prospects have allowed Morgan Stanley to discard previous worst-case scenarios, such as steep China tariffs, and upgrade its earnings outlook. Crucially, the firm also pointed to accelerating momentum in Amazon Web Services (AWS), fueled by rising demand for artificial intelligence (AI) and cloud-based solutions. With that in mind, let's take a closer look at the specific areas Morgan Stanley believes will drive Amazon's next phase of growth. About Amazon Stock Headquartered in Seattle, Amazon is an e-commerce behemoth that's engaged in online retail, cloud computing, digital streaming, and AI businesses. The company is also a major force in cloud services through its AWS division, which offers on-demand solutions such as computing power, storage, databases, and machine learning tools. Although Amazon stock has rebounded from its April lows, its performance remains relatively slow, gaining just 4.5% year to date, compared with the S&P 500 Index's ($SPX) 7.3% advance over the same time frame. In terms of valuation, AMZN appears relatively expensive. Its price-to-sales ratio of 3.64 is well above the sector median of 0.98, indicating that investors are paying a premium. However, its price/earnings-to-growth (PEG) ratio of 0.51 points to potential undervaluation relative to its expected bottom-line growth, especially when compared to the sector average PEG of 0.78. Easing Tariffs and Improving Macro Outlook Morgan Stanley restored its 2026 EPS forecast for Amazon to $8, citing a 'significantly improved' macroeconomic outlook since mid‑April. The firm also raised its 2027 forecast, effectively reversing earlier cuts that had factored in potential punitive tariffs on Chinese imports. Morgan Stanley's team now judges the likelihood of extreme tariff measures disrupting Amazon's growth as 'much lower,' and views easing trade tensions as a catalyst for smoother execution across the retailer's core businesses. Tariff concerns weighed heavily on online retail earlier this year, but the latest note describes current pressures as 'manageable.' Unlike some peers, says the firm, Amazon can mitigate cost headwinds by diversifying its supply chain and fine‑tuning pricing strategies. Morgan Stanley specifically points to the improving tariff environment as a key driver behind its more optimistic outlook. AWS and AI Growth Catalysts A second pillar of Morgan Stanley's bullish view is Amazon's cloud and AI businesses. The firm wrote of an 'increased conviction in AWS acceleration' driven by the generative AI wave. Indeed, AWS has been Amazon's biggest profit engine, and it has only become more strategically vital as companies race to adopt AI tools. Notably, Amazon in Q1 announced new generative AI offerings on its Bedrock platform; for example, hosting Anthropic's Claude 3.7 Sonnet and Meta's (META) Llama 4 models for customers. Morgan Stanley highlighted partnerships like the one with AI startup Anthropic as concrete evidence of AWS's upside. It also cited the competitive cloud landscape, which includes Microsoft (MSFT) Azure's own AI push, as a validation of Amazon's strategy. Amazon's recent investment in AI infrastructure even includes custom hardware, as it revealed a specialized In-Row Heat Exchanger cooling system for Nvidia's (NVDA) latest AI chips, underscoring the mega-cap company's commitment to supporting compute-intensive workloads. Amazon Smashes Q1 Earnings Amazon's Q1 2025 results showed the business performing solidly, as Amazon reported net sales of $155.7 billion, which is up 9% from a year ago. All of Amazon's segments grew: North America retail revenue rose 8% to $92.9 billion; international revenue rose about 5% (8% excluding forex) to $33.5 billion; and AWS sales jumped 17% to $29.3 billion. The surge in AWS revenue was a key profit driver: AWS operating income in Q1 reached $11.5 billion, up from $9.4 billion a year ago. On the profitability front, net income soared to $17.1 billion, or $1.59 per share, from $10.4 billion ($0.98) in Q1 2024. That represents a huge step up in profit, even as the company continued to invest aggressively in new technology and logistics. However, AMZN slipped after earnings in response to a soft forecast. Looking ahead, investors will closely watch Amazon's Q2 results (due out after the close on July 31) for signs of resilience. The consensus projection is roughly $159–164 billion in sales with earnings around $1.30–$1.50 per share, but Morgan Stanley's call for easier tariffs and strong AWS momentum could help Amazon beat those estimates. What Does Wall Street Think About AMZN Stock? Backing Morgan Stanley's view, Wall Street analysts also remain bullish on Amazon's growth prospects. Among 54 analysts covering the stock, the consensus rating is 'Strong Buy,' with 47 assigning a 'Strong Buy,' six recommending a 'Moderate Buy,' and only one maintaining a 'Hold' rating. This bullish group has set an average price target of $249.85 for Amazon, implying a potential upside of about 9% from Monday's closing price. On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
21-07-2025
- Business
- Yahoo
Pinterest Stock Gains Traction With Instacart Deal, Multiple Analyst Upgrades
Pinterest, Inc. (NYSE:PINS) has attracted a wave of bullish calls from Wall Street over the past month, as several analysts raised their price forecasts and reiterated optimistic outlooks. The latest update came from Morgan Stanley, where analyst Brian Nowak upgraded the stock from Equal-Weight to Overweight and increased the price forecast from $37 to $45. Other analysts have also adjusted their price forecasts upward. Wedbush analyst Scott Devitt maintained an Outperform rating, raising the price forecast from $40 to $42. KeyBanc's Justin Patterson kept an Overweight rating and increased the price forecast from $40 to $45. Also Read: UBS analyst Lloyd Walmsley maintained a Buy rating, boosting the price forecast from $44 to $50. Similarly, TD Cowen analyst John Blackledge maintained a Buy rating and raised the price forecast from $40 to $43. Wells Fargo analyst Ken Gawrelski maintained an Overweight rating, adjusting the price forecast from $41 to $42, and Citigroup's Ronald Josey maintained a Buy rating, moving the price forecast from $41 to $44. Earlier in June, JPMorgan analyst Doug Anmuth upgraded Pinterest's stock from Neutral to Overweight, raising the price forecast from $35 to $40. Anmuth cited robust user growth, improved monetization strategies, and the platform's resilience against search engine disruption as key drivers for this upgrade. He also highlighted potential upside in margins, supported by accelerating revenue and disciplined cost management. Further contributing to the positive sentiment, Pinterest announced a new partnership with Instacart in June. This collaboration aims to enhance shoppability and ad targeting on Pinterest. Through this deal, selected advertisers gain access to Instacart's valuable first-party retail data, allowing them to precisely target high-intent users on Pinterest. A subsequent phase of the partnership will introduce closed-loop measurement, enabling advertisers to directly link ad exposure on Pinterest with actual product sales on Instacart, providing clear insights into campaign effectiveness. This collaboration also integrates Pinterest ads directly with Instacart, empowering users to complete purchases of items like recipe ingredients or personal care products within a few clicks, bridging the gap between inspiration and immediate action. On the technical front, Pinterest has traded between a 52-week low of $23.68 and a high of $42.02. After sliding nearly 39% from its peak to early April lows, the stock rebounded more than 60% and is now up 32% year to date. It trades about 12.6% above its 50-day moving average and 19% above its 200-day moving average, reflecting strong short and long-term momentum. Price Action: PINS shares are trading higher by 2.30% to 37.97 at Monday's last check. Read Next:Image via Shutterstock Latest Ratings for PINS Date Firm Action From To Mar 2022 Benchmark Initiates Coverage On Hold Feb 2022 Credit Suisse Maintains Neutral Feb 2022 UBS Maintains Neutral View More Analyst Ratings for PINS View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Pinterest Stock Gains Traction With Instacart Deal, Multiple Analyst Upgrades originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
