Company Reports

Amazon dominates its served markets, notably for e-commerce and cloud services. It benefits from numerous competitive advantages and has emerged as the clear e-commerce leader given its size and scale, which yield an unmatched selection of low-priced goods for consumers. The secular drift toward e-commerce continues unabated with the company continuing to grind out market share gains despite its size. Prime ties Amazon’s e-commerce efforts together and provides a steady stream of high-margin recurring revenue from customers who purchase more frequently from Amazon’s properties. In return, consumers get one-day shipping on millions of items, exclusive video content, and other services, which result in a powerful virtuous circle where customers and sellers attract one another. The Kindle and other devices further bolster the ecosystem by helping attract new customers, while making the value proposition irresistible in retaining existing users.

Amazon reported second-quarter results that beat the high end of guidance on both the top and bottom lines. Revenue increased 20% year over year in constant currency to $200.6 billion, while operating margin was 13.7% versus 11.4% a year ago.

Moonshot AI launched Kimi K3, a 2.8 trillion-parameter open-weight model that, according to benchmarks, is almost as performant as Anthropic's Fable 5 while being cheaper. This launch is putting downward pressure on artificial intelligence companies across hardware and infrastructure.

Amazon announced it has launched Amazon Supply Chain Services, thereby broadening its services availability to the company’s freight, fulfilment and distribution, and parcel delivery.

Amazon dominates its served markets, notably for e-commerce and cloud services. It benefits from numerous competitive advantages and has emerged as the clear e-commerce leader given its size and scale, which yield an unmatched selection of low-priced goods for consumers. The secular drift toward e-commerce continues unabated with the company continuing to grind out market share gains despite its size. Prime ties Amazon’s e-commerce efforts together and provides a steady stream of high-margin recurring revenue from customers who purchase more frequently from Amazon’s properties. In return, consumers get one-day shipping on millions of items, exclusive video content, and other services, which result in a powerful virtuous circle where customers and sellers attract one another. The Kindle and other devices further bolster the ecosystem by helping attract new customers, while making the value proposition irresistible in retaining existing users.

Amazon 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.

After reports of this potential deal began circulating on April 1, Amazon formally announced its acquisition of Globalstar, a provider of low Earth orbit satellite connectivity services, for $11.6 billion. The deal must be approved by the Federal Communications Commission.

Amazon reported fourth-quarter results that beat the high end of guidance on the top line and came in a shade under that on operating profit. Sales grew 14% year over year in constant currency to $213.4 billion, while operating margin was 11.7% versus 11.3% a year ago.

Amazon dominates its served markets, notably for e-commerce and cloud services. It benefits from numerous competitive advantages and has emerged as the clear e-commerce leader given its size and scale, which yield an unmatched selection of low-priced goods for consumers. The secular drift toward e-commerce continues unabated with the company continuing to grind out market share gains despite its size. Prime ties Amazon’s e-commerce efforts together and provides a steady stream of high-margin recurring revenue from customers who purchase more frequently from Amazon’s properties. In return, consumers get one-day shipping on millions of items, exclusive video content, and other services, which result in a powerful virtuous circle where customers and sellers attract one another. The Kindle and other devices further bolster the ecosystem by helping attract new customers, while making the value proposition irresistible in retaining existing users.

Amazon dominates its served markets, notably for e-commerce and cloud services. It benefits from numerous competitive advantages and has emerged as the clear e-commerce leader given its size and scale, which yield an unmatched selection of low-priced goods for consumers. The secular drift toward e-commerce continues unabated with the firm continuing to grind out market share gains despite its size. Prime ties Amazon’s e-commerce efforts together and provides a steady stream of high-margin recurring revenue from customers who purchase more frequently from Amazon’s properties. In return, consumers get one-day shipping on millions of items, exclusive video content, and other services, which result in a powerful virtuous circle where customers and sellers attract one another. The Kindle and other devices further bolster the ecosystem by helping attract new customers, while making the value proposition irresistible in retaining existing users.

Amazon's third-quarter results beat the high end of guidance on the top line and would've beat it on the bottom line, save for $4.3 billion of unusual items. Sales grew 12% year over year in constant currency to $180.2 billion, while operating margin was 9.7% versus 11.0% a year ago.

Amazon dominates its served markets, notably for e-commerce and cloud services. It benefits from numerous competitive advantages and has emerged as the clear e-commerce leader given its size and scale, which yield an unmatched selection of low-priced goods for consumers. The secular drift toward e-commerce continues unabated with the firm continuing to grind out market share gains despite its size. Prime ties Amazon’s e-commerce efforts together and provides a steady stream of high-margin recurring revenue from customers who purchase more frequently from Amazon’s properties. In return, consumers get one-day shipping on millions of items, exclusive video content, and other services, which result in a powerful virtuous circle where customers and sellers attract one another. The Kindle and other devices further bolster the ecosystem by helping attract new customers, while making the value proposition irresistible in retaining existing users.

Amazon reported second-quarter results that beat the high end of guidance on both the top and bottom lines. Revenue grew by 12% year over year in constant currency to $167.6 billion, while operating margin was 11.4% compared with 9.9% a year ago.

Amazon reported first-quarter results that beat the high end of guidance on both the top and bottom lines. Revenue grew by 10% year over year in constant currency to $155.7 billion, while operating margin was 11.8% versus 10.7% a year ago. Currency hurt sales growth by $1.4 billion.

We are raising our fair value estimate for wide-moat Amazon to $240 per share from $200 after the company reported strong fourth-quarter results. The firm’s first-quarter outlook was slightly better than we expected, despite including more than $2 billion of incremental currency pressure on revenue. Additionally, given the early returns on the profitability front from the ongoing network improvement efforts, we modestly raised our profitability and working capital assumptions throughout our forecast period, which had a substantial impact on our valuation. When operating margins are relatively modest, even small improvements are meaningful. We see shares as fairly valued, after a strong run since early August.

Amazon dominates its served markets, notably for e-commerce and cloud services. It benefits from numerous competitive advantages and has emerged as the clear e-commerce leader given its size and scale, which yield an unmatched selection of low-priced goods for consumers. The secular drift toward e-commerce continues unabated with the firm continuing to grind out market share gains despite its size. Prime ties Amazon’s e-commerce efforts together and provides a steady stream of high-margin recurring revenue from customers who purchase more frequently from Amazon’s properties. In return, consumers get one-day shipping on millions of items, exclusive video content, and other services, which result in a powerful virtuous circle where customers and sellers attract one another. The Kindle and other devices further bolster the ecosystem by helping attract new customers, while making the value proposition irresistible in retaining existing users.

We have consolidated our recent DeepSeek-related coverage in this note. Artificial intelligence affects companies across much of our coverage, including semiconductors, cloud infrastructure, software, utilities, and energy.

DeepSeek, a Chinese artificial intelligence company, released its open-source reasoning model, R1, earlier this month. The model's capabilities roughly match those of advanced models by OpenAI, Anthropic, and Google while having materially lower training costs.

We do not expect a material impact on Amazon’s e-commerce operations after thousands of workers went on strike on Dec. 19. The shares are up modestly intraday, reinforcing the notion that this is not likely to have a negative impact. Amazon continues to drive efficiencies throughout its network, which helps lower costs and improve delivery speeds and ultimately drives increased purchases by Prime members. Our fair value estimate remains at $200, leaving the shares overvalued, in our view. Shares of nearly all companies in our narrow software coverage have been extremely strong since September on expectations for interest-rate cuts by the Federal Reserve. Fundamentals have not changed. While we have not changed our discount rate, a 100-basis-point reduction would result in a fair value estimate increase of at least 20%.

Amazon dominates its served markets, notably for e-commerce and cloud services. It benefits from numerous competitive advantages and has emerged as the clear e-commerce leader given its size and scale, which yield an unmatched selection of low-priced goods for consumers. The secular drift toward e-commerce continues unabated with the firm continuing to grind out market share gains despite its size. Prime ties Amazon’s e-commerce efforts together and provides a steady stream of high-margin recurring revenue from customers who purchase more frequently from Amazon’s properties. In return, consumers get one-day shipping on millions of items, exclusive video content, and other services, which result in a powerful virtuous circle where customers and sellers attract one another. The Kindle and other devices further bolster the ecosystem by helping attract new customers, while making the value proposition irresistible in retaining existing users.