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.
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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.