Analyst Note
| Dan Romanoff, CPA |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 remains well positioned to prosper from the shift toward e-commerce during the COVID-19 pandemic (with particular strength in groceries and staples) in the near term, but also the secular shift toward e-commerce in the long term. We are particularly impressed by margin performance, which we think is a preview of Amazon’s earnings power as COVID-19 costs roll away and the company grows into its 50% fulfilment capacity expansion from 2020.