Amazon Set for Upgrade After Prime Delivery Enhanced

Morningstar analysts expect to increase the fair value estimate for Amazon after an upgrade to the Prime delivery service announced in the latest results

R.J. Hottovy, CFA 26 April, 2019 | 3:35PM
Facebook Twitter LinkedIn

Amazon Prime

Amazon's (AMZN) first-quarter update reinforced its continued shift in to a more dynamic free cash story, with subscription platforms, Amazon Web Services, advertising, and Whole Foods each contributing to strong revenue growth and a new high-water mark for first-quarter operating margins. Nevertheless, it was Amazon's announcement that it plans to evolve its Prime two-day free shipping programme into a one-day free shipping programme that warrants the closest examination.

Amazon remains one of our top investment ideas, and we're planning to increase our $2,200 fair value estimate as one-day shipping investments will be more than offset by new user engagement/subscription and seller monetisation.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Amazon.com Inc3,446.74 USD1.11Rating

About Author

R.J. Hottovy, CFA  is a director of equity analysis with Morningstar.