Amazon Beats Earnings Expectations, Fair Value Estimate Raised to $300

Amazon's second-quarter earnings report exceeded expectations, with revenue increasing 20% year over year in constant currency to $200.6 billion. The company reported an operating margin of 13.7%, up from 11.4% a year ago.

The growth was driven by various segments, including online stores, third-party seller services, and AWS, which exceeded expectations by more than $1 billion each. Despite ramping up Leo costs, tariffs, massive data center expansion, and conflicts in Ukraine and the Middle East, Amazon's results were not significantly impacted.

Morningstar raised its fair value estimate for Amazon to $300 from $280 previously, citing solid guidance and increased estimates for AWS and advertising.