Key Morningstar Metrics for Amazon
- : $280
- : ★★★★
-
Morningstar Economic Moat Rating
: Wide
-
Morningstar Uncertainty Rating
: Medium
What We Thought of Amazon’s Earnings
Amazon AMZN’s third-quarter revenue rose 12% to $202 billion and operating margin reached 13.9%. Updated guidance was roughly in line with expectations, although the shares fell roughly 7% after hours.
Why it matters: We would characterize Amazon’s earnings as pretty good overall, although the reality of exactly how much cash the artificial intelligence buildout is going to cost is becoming more noticeable.
- Amazon Web Services grew 39%, an acceleration from 37% last quarter, and management expects growth above 40% in both 2027 and 2028. These are solid results. However, everyone remains worried about the cost of this growth.
- Capital expenditures were reiterated at $220 billion for the current year, with 2027 levels now characterized as “meaningfully more” compared with 2026….