Morgan Stanley analyst Brian Nowak maintained an Overweight rating on Amazon.Com Inc (NASDAQ:AMZN). Nowak pointed out that although investor sentiment towards Amazon has improved in recent quarters, the stock performance has still lagged behind other mega-cap peers since July of fiscal 2021. The analyst attributed this lag to execution missteps, headwinds faced by Amazon Web Services (AWS), retail overbuild, AI sentiment overhangs, and minor revisions. However, Nowak believes these factors also make Amazon his top pick. He noted that better execution, cost discipline, and revisions position Amazon for significant outperformance. Nowak also expects substantial free cash flow revisions from improving North American profitability, a thriving digital ad business, and profitable mid-teens AWS annual top-line growth. The analyst highlighted three critical areas for Amazon to drive multi-year outperformance: a stronger grocery strategy, AWS regaining its position in the cloud market, and increased and consistent capital returns through an expanded buyback program. Nowak emphasized that consistent capital returns could lead to higher shareholder returns and a higher multiple for the stock. In terms of price action, AMZN shares were trading lower by 1.42% to $158.96 at the time of the report.