Morgan Stanley analyst Brian Nowak reaffirmed his bullish stance on Amazon, noting advancements by the internet retailing juggernaut in robotics will offset higher wage costs down the road. Nowak also said Amazon will report better-than-expected earnings next week.

“In all, we estimate the wage increases will increase operating expenses by ~$2.75bn (~2.5%) in FY:19, assuming 23% y/y overall headcount growth in 2019 and ~20% y/y growth in affected employees,” Nowak said in a note to clients Monday. “But this cost should be manageable as we see fulfillment efficiency improving from Kiva integration (aka Robotics).”


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