Amazon.com Inc
AMZN: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$839.00 | Vqbd | Ygjlrkcyt |
Amazon: We Doubt Amazon Is Broken Up by the FTC and Instead See a Relatively Minor Fine
We are maintaining our fair value estimate of $150 per share for wide-moat Amazon as the U.S. Federal Trade Commission, or FTC, was joined by 17 state attorneys general in filing a lawsuit against the company for a variety of alleged anticompetitive practices. Our initial opinion is that a settlement is the most likely outcome, with a fine being levied and possibly some minor changes in business practices, and we are highly skeptical that Amazon will be broken up. Shares still appear modestly undervalued to us.