NEW YORK (TheStreet) -- Shares of Amazon.com (AMZN) - Get Report were higher in late-afternoon trading on Thursday as Morgan Stanley analysts said the Seattle-based e-commerce giant's launch of Amazon Vehicles this morning could lead to a surge in revenue and overshadow similar services offered by competitors such as eBay (EBAY).
Amazon.com is launching Amazon Vehicles, an extension of its Amazon Automotive store, that will provide consumers specifications, images, videos and customer reviews for new and old vehicle models.
Morgan Stanley said this venture exposes Amazon.com to another $67 billion market, and could be "the road to the next trillion" dollars in revenue, according to Barron's.
Eventually, the company could partner with dealerships to sell new and old cars, as well as car parts, directly from the site, the firm noted.
The launch of Amazon Vehicles follows several other recent, auto-related announcements from Amazon.com, including its planned partnership with Hyundai Motor (HYMLF), where Amazon.com will bring cars to consumers' locations for test drives. The company also recently announced Amazon Echo integration with several car brands.
Additionally, Amazon Vehicles poses a threat to eBay, whose automobile section made up 11% of its gross merchandise revenue in 2013, Morgan Stanley added.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate AMAZON.COM INC as a Buy with a ratings score of B-. COM INC (AMZN) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: