Amazon Evolving Into Profitable Growth Company
We see potential for free cash flow growth from AWS, third-party sales, and Prime membership tiers.
R.J. Hottovy: Wide-moat Amazon capped off 2018 with strong fourth-quarter results that confirmed our views about the company's evolution from being not just a growth company, but a profitable growth company with multiple free cash flow layers.
While some of the marketplace are looking at the company's first-quarter revenue guidance, calling for a 10% to 18% growth, compared to the 20% growth the company posted in the fourth quarter as a negative, we encourage investors to look at the company's entire portfolio, particularly AWS, advertising, third-party sales, and Prime membership tiers, and look at the potential free cash flow that these businesses could bring.
R.J. Hottovy does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.