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Amazon Builds on Strength; Shares Look Modestly Undervalued

We're raising our fair value estimate after the wide-moat firm saw accelerating growth in its core retail profit functions.


Amazon reported earnings on Thursday. The most important takeaway for investors from Amazon's update is that the drivers of the firm's top and bottom-line outperformance are built to last and that the firm is enhancing the sources of its wide moat.

We're planning to raise our fair value estimate, and even after the rally this morning see shares as modestly undervalued.

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R.J. Hottovy does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.