Key Morningstar Metrics for Amazon
- : $280
- : ★★★
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Morningstar Economic Moat Rating
: Wide
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Morningstar Uncertainty Rating
: Medium
What We Thought of Amazon’s Earnings
Amazon AMZN reported first-quarter results that beat the high end of guidance on both the top and bottom lines. Revenue grew 15% year over year in constant currency to $181.5 billion, while operating margin was 13.1% versus 11.8% a year ago.
Why it matters: Overall results are positive, as consumer spending remains stable, the expansion of grocery and same-day delivery continues to drive demand, and artificial intelligence supports surging AWS growth. Further, profitability is impressive against various profitability headwinds.
- All segments were ahead of our model, with physical stores slightly light. Online stores, third-party seller services, and AWS were each more than $1 billion above expectations. We do not see any areas of concern with demand and believe the results support our…
