Amazon Entering 'era Of Margin Expansion'

Shares of Inc. grew 3% on Thursday after Morgan Stanley analyst Katy Huberty joined a growing choir of bullish analysts on the e-commerce giant following its stronger-than-expected earnings last week. In a note to clients, she said Amazon may be entering a period of margin expansion, partially due to its cloud service Amazon Web Service, which saw usage climb 90% in the fourth quarter. She was also optimistic on Amazon's efforts to improve its presence in China, though she said expansion in international markets will be essential for Prime to maintain strong growth rates. Huberty reiterated her overweight rating and $415 target on the stock. Morgan Stanley has Amazon on its "Best Idea" list. Shares of Amazon traded around $375.50 recently. They are up close to 27% over the last three months, compared with a 2% increase for the S&P 500.

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