Amazon AMZN is estimated to release its fourth-quarter earnings report on Feb. 6. Here’s Morningstar’s take on what to look for in Amazon’s earnings and stock.
Key Morningstar Metrics for Amazon Fair Value Estimate : $200.00 Morningstar Rating : ★★ Economic Moat : Wide Morningstar Uncertainty Rating : Medium Estimated Earnings Release Date Thursday, Feb. 6, 2025 What to Watch for in Amazon’s Q4 Earnings Capex levels and new capex guidance: This is in light of the surge in data center capacity expansion, and made more interesting by the Stargate announcement earlier this week.
Amazon Web Services performance: Growth should be accelerating, even if modestly. Segment margins were high last quarter. We’re also looking for any AI-related commentary on Alexa or AWS.
Advertising performance: This is a key growth driver and margin level for the company. E-commerce performance: All signs point to a good quarter here. Discussion of margin improvements and operational performance: This has been an ongoing narrative wherein the company keeps turning the crank and finding new areas to gain efficiencies throughout the network and in other areas.
Fair Value Estimate for Amazon With its 3-star rating, we believe Amazon’s stock is fairly valued compared with our long-term fair value estimate of $200 per share, which implies a 2024 enterprise value/sales multiple of 3 times and a 2% free cash flow yield. Over the long term, we expect e-commerce to continue to take share from br.
