From Morningstar:

Amazon released its fourth-quarter earnings report, showing better-than-expected results and raised margin assumptions. Despite impressive earnings, shares are deemed fairly valued due to a mixed macro outlook and recent strong results. The bulls point to high-margin advertising and AWS, while bears cite regulatory concerns and new investments. Morningstar rates Amazon as 3-star, believing it is fairly valued. They expect e-commerce to continue to take market share and anticipate retail-related revenue growing at a 9% compound annual growth rate over the next five years. They also project AWS and advertising revenue to grow, with Amazon totaling an 11% CAGR through 2027. They predict Amazon’s GAAP operating margin expanding from 2% (actual) in 2022 to the low double digits in 2027.



Read more: After Earnings, is Amazon Stock a Buy, Sell or Hold?