Amazon.com Inc (AMZN) Quote - XNAS | Morningstar

Skip to Content

Is it the right time to buy or sell?

Find out with Morningstar Premium

Is it the right time to buy or sell?

Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Amazon Shares Look Increasingly Attractive Amid Tech Underperformance Year to Date; $4,000 FVE

Equity Analyst Dan Romanoff

Dan Romanoff, CPA Equity Analyst

Analyst Note

| Dan Romanoff, CPA | Apr 1, 2021

We view shares of wide-moat Amazon as increasingly attractive in the recent sell-off related to growth-oriented technology stocks, and we highlight it among our top picks currently while reiterating our $4,000 fair value estimate. Our long-term investment case centers around Amazon’s dominance in both e-commerce and public cloud services through Amazon Web Services (AWS) as well as its quiet strength in its unique advertising business.

Read Full Analysis

Company Profile

Business Description

Amazon is a leading online retailer and one of the highest-grossing e-commerce aggregators, with $386 billion in net sales and approximately $482 billion in estimated physical/digital online gross merchandise volume, or GMV, in 2020. Retail related revenue represented approximately 83% of total, followed by Amazon Web Services' cloud computing, storage, database, and other offerings (12%), and advertising services and cobranded credit cards (6%). International segments constituted 27% of Amazon's non-AWS sales in 2020, led by Germany, the United Kingdom, and Japan.

Contact

410 Terry Avenue North
Seattle, WA, 98109-5210

T +1 206 266-1000

amazon-ir@amazon.com

Sector Consumer Cyclical

Industry Internet Retail

Most Recent Earnings Dec 31, 2020

Fiscal Year End Dec 31, 2021

Stock Type Cyclical

Employees 1,298,000

Related

Sustainability Matters

ESG Doesn’t Thrive in Every Market Environment

Despite a subpar first quarter, the long-term case for ESG remains strong.

10 Undervalued Wide-Moat Stocks

Here's a peek at the cheapest constituents of the Morningstar Wide Moat Focus Index--as well as names that have been added and cut.

Susan Dziubinski

Stock Strategist Industry Reports

Online Travel Agencies' Moats Supported by COVID-19, Key Markets

Competition presents headwinds to players in the travel market, however.

Rekenthaler Report

When Stocks Become Collectibles

The anecdotes entertain, but the economic implications should not be ignored.

John Rekenthaler

Investing Specialists

Our Ultimate Stock-Pickers' Top 10 Buys and Sells

Funds see value in a diverse range of sectors.

Malik Ahmed Khan

4 Stock Picks From Top Managers

Our Ultimate Stock-Pickers made sizable investments in these names last quarter.

These Sectors Performed Best and Worst in the Pandemic

We look at the industries for those most affected by social-distancing and stay-at-home orders.

Sachin Nagarajan

Stock Strategist Industry Reports

Video Games Power Up During Pandemic

Lockdowns and next-generation consoles are supercharging growth.

Fidelity Contrafund Continues to Impress

The behemoth's merits are substantial.

Robby Greengold

9 Wide-Moat Stocks of Tomorrow

These narrow-moat firms have positive moat trends and are run by exemplary stewards of capital.

Susan Dziubinski

Investing Specialists

Our Ultimate Stock-Pickers' Top 10 High-Conviction Purchases

Several managers see value in technology and financial services.

Malik Ahmed Khan

What Top Fund Managers Bought and Sold

As 2020 screeched to a close, financials stocks were popular.

Investing Specialists

What's the Best Way to Start Investing?

Three arguments against getting started in investing with individual stocks.

Should I Buy Apple Stock Now?

What you have to believe to justify the high valuation that the market is placing on Apple's stock.

Inside a Tough Year for Primecap

One of my favorite Vanguard fund managers fell well behind in 2020.

How to Pick a Large-Value Fund

Have your portfolio ready when investor sentiment swings to the value side of the style box.

Digging Into Fidelity Contrafund

We reveal how the fund’s underlying holdings stack up on 11 measures of equity-related risk.

Stock Analyst Update

Amazon's Q4 Strength; Bezos to Step Down; FVE to $4000

Wide-moat Amazon reported strong fourth-quarter results, including material upside to revenue, an EPS blowout, and upside to its revenue outlook for the first quarter. Amazon also announced that CEO Jeff Bezos will transition to the role of executive chairman in the third quarter and will be replaced by Andy Jassy, CEO of AWS.

5 Undervalued Innovative Stocks

These names from the Morningstar Exponential Technologies Index are trading at 4- and 5-star levels.

Susan Dziubinski

Nestle, Nvidia, and the Changing Global Equity Markets

Morningstar indexes reveal the extent of U.S. technology dominance.