Report
R.J. Hottovy
EUR 101.80 For Business Accounts Only

Amazon's Strong Gross Margins Reinforce Long-Term Potential of Prime, Third-Party Sales, and AWS

Our view of Amazon as having one of the widest moats in the consumer space is intact following the firm's fourth-quarter update. For us, the highlight was the 190-basis-point uptick in gross margins to 33.8%, which we find as the metric that best encapsulates our longer-term free cash flow drivers, including Prime membership growth and engagement, increasing third-party sales, and Amazon Web Services. While operating margins fell 20 basis points year over year, we attribute most of the softness ...
Underlying
Target Corporation

Target provides its customers everyday essentials and merchandise. The company sells an assortment of general merchandise and food. The majority of the company's general merchandise stores provide an edited food assortment, including perishables, dry grocery, dairy, and frozen items. The company's small format stores provide curated general merchandise and food assortments. The company's digital channels include merchandise assortment, including various items found in its stores, along with a complementary assortment. The company also sells merchandise through periodic design and partnerships. The company's owned brands merchandise include: A New Day?, Archer Farms?, Art Class?, Ava & Viv?, Cat & Jack?, and Cloud Island?, among others.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
R.J. Hottovy

Other Reports on these Companies
Other Reports from Morningstar

ResearchPool Subscriptions

Get the most out of your insights

Get in touch