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Amazon.com Inc AMZN

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Morningstar’s Analysis

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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

Dan Romanoff, CPA Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

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.

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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
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

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