Amazon's fourth-quarter earnings report revealed a revenue growth of 10% year over year, totaling $187.8 billion. Although faced with currency headwinds, the firm's core segments Amazon Web Services (AWS) and advertising showed robust growth rates of 19% and 18%, respectively. The company's profitability exceeded expectations with an operating profit of $21.2 billion and an operating margin improvement to 11.3%. Morningstar raised its fair value estimate from $200 to $240 per share, indicating a positive outlook for Amazon despite existing consumer challenges in e-commerce.
After strong Q4 performance, we raised our fair value estimate for Amazon to $240 per share, reflecting better-than-expected growth in key segments.
Amazon's Q4 revenue was $187.8 billion, a 10% year-over-year increase, showing robust stability despite consumer stress in e-commerce.
The growth in Amazon Web Services (AWS) and advertising segments is significant, expanding 19% and 18% year over year, indicating strong prospects for long-term growth.
The firm's operating profit reached $21.2 billion in Q4, surpassing guidance, leading to an impressive operating margin of 11.3% compared to 7.8% last year.
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