Skip to Content
US Videos

Looking at Amazon's Future Beyond Prime Day

Ahead of Amazon Prime Day, a look at the company's longer-term plans.


With Amazon's annual Prime Day right around the corner, we thought we'd take a look at what this event reveals about the company's longer-term strategic priorities and how it supports the assumptions behind our $2300 fair value estimate.

As a starting point, we believe Amazon has been undergoing a strategic shift the past several years on two fronts. The first is shifting away from a first-party marketplace where Amazon directly sells products to consumers, to more of a third-party platform where vendors sell products and Amazon takes a commission from the sale. This is important not only because this is a higher-margin transaction from Amazon, but also it unlocks additional services that Amazon can offer its vendors. The most obvious of these is Fulfillment by Amazon, where vendors can store their products alongside Amazon's own products and use the company's logistics services for one- and two-day delivery. However, this also includes Amazon's own advertising services, which was one of the fastest-growing segments across Amazon's portfolio in 2018. As it pertains to Prime Day, Amazon is planning new collaborations with several new key apparel vendors and has noted that small- and medium-sized vendors sold more than $1.5 billion worth of products on Prime Day last year, a figure that we expect the company to easily surpass in 2019.

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

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.