{ "cells": [ { "cell_type": "markdown", "metadata": {}, "source": [ "This file shows how to upload the files, create the vector index or update it, then ask questions to the LLM" ] }, { "cell_type": "code", "execution_count": 1, "metadata": {}, "outputs": [], "source": [ "import os, json\n", "import requests\n", "from rich import print\n", "from rich.pretty import pprint" ] }, { "cell_type": "code", "execution_count": 2, "metadata": {}, "outputs": [], "source": [ "data_dir = \"data\" # data to play with inside notebooks " ] }, { "cell_type": "code", "execution_count": 3, "metadata": {}, "outputs": [], "source": [ "filelist = [\n", " 'ATT_SEC_AnnualReport_2022.pdf',\n", " 'ATT_StockAnalystNote_Annual_20230125.pdf',\n", " 'ATT_CompanyReport_Annual_20230126.pdf',\n", " 'AMZN_MS_CompanyReport_Annual_20230203.pdf',\n", " 'AMZN_Morning Star_StockAnalystNote_20230203.pdf',\n", " 'AMZN_Moodys_CreditRating_2023.pdf',\n", " 'AMZN_Morning Star_Transcript_Annual.pdf'\n", " ]" ] }, { "cell_type": "markdown", "metadata": {}, "source": [ "## Upload files" ] }, { "cell_type": "code", "execution_count": 10, "metadata": {}, "outputs": [], "source": [ "def upload_files(data_dir, filelist, url, show_content=False, n=2):\n", " if isinstance(filelist, str):\n", " filelist = [filelist]\n", " for filename in filelist[:n]:\n", " file_path = os.path.join(data_dir, filename)\n", " if os.path.isfile(file_path):\n", " with open(file_path, 'rb') as f:\n", " files = {'file': (filename, f)}\n", " response = requests.post(url, files=files)\n", " pprint(f\"Uploaded {filename} with response {response.status_code}\")\n", " if show_content:\n", " pprint(json.loads(response.text))" ] }, { "cell_type": "code", "execution_count": 7, "metadata": {}, "outputs": [ { "name": "stdout", "output_type": "stream", "text": [ "{\"answer\":\"78\"}" ] } ], "source": [ "!curl -X GET http://localhost:8003/ping/" ] }, { "cell_type": "code", "execution_count": 40, "metadata": {}, "outputs": [ { "name": "stdout", "output_type": "stream", "text": [ "{\"message\":\"All data has been erased\"}{\"message\":\"Collection erased!\"}" ] } ], "source": [ "# total wipe clean of files in 'data' and the vectorstore \n", "!curl -X DELETE http://localhost:8003/erase_data/\n", "!curl -X DELETE http://localhost:8003/empty_collection/" ] }, { "cell_type": "code", "execution_count": 12, "metadata": {}, "outputs": [ { "data": { "text/html": [ "
'Uploaded ATT_StockAnalystNote_Annual_20230125.pdf with response 200'\n",
       "
\n" ], "text/plain": [ "\u001b[32m'Uploaded ATT_StockAnalystNote_Annual_20230125.pdf with response 200'\u001b[0m\n" ] }, "metadata": {}, "output_type": "display_data" }, { "data": { "text/html": [ "
{\n",
       "│   'message': 'Successfully uploaded ATT_StockAnalystNote_Annual_20230125.pdf',\n",
       "│   'ATT_StockAnalystNote_Annual_20230125.pdf': [\n",
       "│   │   'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 1 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Financial Summary and Key Statistics \\nActual Forecast\\n2021 2022 2023 2024\\nRevenue (USD Mil) 118,208 120,741 121,939 124,557\\nRevenue Growth % 4.4 2.1 1.0 2.2\\nOperating Income (Mil) 22,116 22,911 25,381 26,565\\nOperating Margin % 18.7 19.0 20.8 21.3\\nAdjusted EBITDA (Mil) 39,849 13,434 42,956 44,640\\nAdjusted EBITDA Margin % 33.7 11.1 35.2 35.8\\nEarnings Per Share (Diluted) (USD) 3.01 -1.15 2.59 2.63\\nAdjusted Earnings Per Share (Diluted) (USD) 3.01 2.41 2.87 2.95\\nAdjusted EPS Growth % 91.5 -19.8 18.8 2.8\\nPrice/Earnings 6.2 7.6 7.1 6.9\\nPrice/Book 1.8 1.4 1.4 1.2\\nEV/EBITDA 9.4 26.5 6.7 6.4\\nFree Cash Flow Yield % 12.4 9.2 11.5 13.0\\nSource: Morningstar Valuation Model. Data as of 25 Jan 2023.AT&T Inc T QQQQ  25 Jan 2023 22:28, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n20.42 USD\\n25 Jan 202325.00 USD\\n11 Apr 2022 03:30, UTC0.82136.57 USD Bil\\n25 Jan 2023\\nNarrow Stable Medium Poor ;;;;;\\n4 Jan 2023 06:00, UTC\\nMichael Hodel, CFA\\nDirector\\nMorningstar\\n+1 (312) 696-6578\\nmichael.hodel@morningstar.com\\nContents\\nAnalyst Note  (25 Jan 2023)\\nBusiness Description\\nFinancials\\nResearch Methodology for Valuing \\nCompanies\\nImportant Disclosure\\nThe conduct of Morningstar’s analysts is governed by Code of \\nEthics/Code of Conduct Policy, Personal Security Trading Policy \\n(or an equivalent of), and Investment Research Policy. For \\ninformation regarding conflicts of interest, please visit: http://\\nglobal.morningstar.com/equitydisclosures.\\nThe primary analyst covering this company does not own its \\nstock.\\nReporting Currency: USD | Trading Currency: USD\\nCurrency amounts expressed with \"$\" are in U.S. dollars \\n(USD) unless otherwise denoted.\\n1The ESG Risk Rating Assessment is a representation of \\nSustainalytics’ ESG Risk Rating.Competitors Slowed AT&T During Fourth Quarter, but Growth \\nRemains Solid \\nAnalyst Note  Michael Hodel, CFA, Director, 25 Jan 2023\\nAT&T isn’t attracting as many wireless customers as it was a year ago, but it continues to post solid results. \\nCustomer retention was strong, but Verizon and T-Mobile seem to have effectively countered AT &T’s promotional \\nefforts, which began in earnest about two years ago. Management expects wireless customer additions will \\ndecline in 2023 as industry growth slows from the torrid pace of the past couple years, which will benefit cash \\nflow, but the firm also signaled that it will work to continue gaining share. We are maintaining our $25 fair value \\nestimate and think the stock remains modestly undervalued.\\nAT&T added 656,000 postpaid phone customers during the fourth quarter, down from 884,000 a year ago and \\nplacing it between T-Mobile (927,000 net additions) and Verizon (217,000). The rate of customer defections \\n(churn) was flat versus the prior quarter, bucking the usual seasonal uptick as the impact of price increases taken \\nover the summer appears to have run its course. On the weak side, however, the firm’s share of new customer \\ndecisions (gross customer additions) dipped during the quarter. Of the big three carriers, only AT &T attracted \\nfewer gross additions than in the prior quarter.\\nWireless service revenue increased 5.2% versus the prior year during the quarter. AT &T’s postpaid phone \\ncustomer base has grown 3.5% over the past year and revenue per customer was 2.5% higher. The slowdown in \\ncustomer additions and a slower customer upgrade pace pulled equipment revenue lower but provided a lift to \\nprofitability. The wireless segment EBITDA margin increased nearly 3 percentage points versus a year ago to 38%.\\nFree cash flow hit $14.1 billion for the year, modestly topping management’s revised target, which it cut from $16 ',\n",
       "│   │   'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 2 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®AT&T Inc T QQQQ  25 Jan 2023 22:28, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n20.42 USD\\n25 Jan 202325.00 USD\\n11 Apr 2022 03:30, UTC0.82136.57 USD Bil\\n25 Jan 2023\\nNarrow Stable Medium Poor ;;;;;\\n4 Jan 2023 06:00, UTC\\nSector Industry\\ni Communication \\nServicesTelecom Services\\nBusiness Description\\nThe wireless business contributes about two \\nthirds of AT&T’s revenue following the \\nspinoff of WarnerMedia. The firm is the \\nthird-largest U.S. wireless carrier, connecting \\n69 million postpaid and 18 million prepaid \\nphone customers. Fixed-line enterprise \\nservices, which account for about 20% of \\nrevenue, include internet access, private \\nnetworking, security, voice, and wholesale \\nnetwork capacity. Residential fixed-line \\nservices, about 10% of revenue, primarily \\nconsist of broadband internet access service. \\nAT&T also has a sizable presence in Mexico, \\nserving 21 million customers, but this \\nbusiness only accounts for 2% of revenue. \\nThe firm still holds a 70% equity stake in \\nsatellite television provider DirecTV but does \\nnot consolidate this business in its financial \\nstatements.billion over the summer. AT &T expects to generate $16 billion of free cash flow in 2023 while it continues to \\ninvest aggressively in its network but with slower customer growth easing working capital needs.\\nConsumer fixed-line revenue increased 2.2% year over year with broadband sales up 6.4%. Broadband net \\ncustomer losses were modestly disappointing at 64,000, up from 20,000 a year ago despite continued expansion \\nof the fiber footprint. We expect AT &T to add net broadband customers in 2023 as a growing portion of \\ncustomers are on the fiber network. Broadband pricing remains solid, as average revenue per fiber customer \\nincreased 9% versus a year ago to nearly $65 per month. EBITDA margins in this segment also continue to expand \\nnicely, hitting 37% during the quarter, up from 31% a year ago.\\nManagement dialed back fiber network expansion plans somewhat, claiming it will build to around 2.0 million-2.5 \\nmillion new customer locations annually through 2025, down from 3.5 million-4.0 million targeted previously and \\naround 3 million built in 2022. The firm still plans to reach 30 million customer locations, though this figure \\nincludes both homes and businesses. AT &T is excited about its venture with BlackRock to build fiber networks \\noutside of the traditional AT &T footprint and the prospects for winning government subsidies to build in rural \\nareas, stating that it will invest capital in whichever format proves the most profitable. We agree that the firm \\nshould explore all options on the table, but we aren’t clear yet why management is slowing the pace of the core \\nnetwork buildout.  K',\n",
       "│   │   'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 3 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®AT&T Inc T QQQQ  25 Jan 2023 22:28, UTC\\nPrice vs. Fair Value \\n010203040Fair Value: 25.00\\n11 Apr 2022 03:30, UTC\\nLast Close: 20.42\\nOver Valued\\nUnder Valued\\n2018 2019 2020 2021 2022 YTD\\n0.77 1.06 0.80 0.68 0.74 0.82 Price/Fair Value\\n-21.45 44.08 -21.08 -7.23 -1.33 12.43 Total Return %\\nMorningstar Rating\\nCompetitors\\nAT&T Inc  T Comcast Corp Class A  CMCSA Verizon Communications Inc  VZ T-Mobile US Inc  TMUS\\nFair Value\\n25.00\\nUncertainty : Medium\\nLast Close\\n20.42\\nFair Value\\n60.00\\nUncertainty : Medium\\nLast Close\\n40.10\\nFair Value\\n57.00\\nUncertainty : Low\\nLast Close\\n40.33\\nFair Value\\n165.00\\nUncertainty : Medium\\nLast Close\\n148.07\\nEconomic Moat\\n Narrow\\n Wide\\n Narrow\\n Narrow\\nMoat Trend Stable Stable Stable Stable\\nCurrency USD USD USD USD\\nFair Value 25.00 11 Apr 2022 03:30, UTC 60.00 29 Jul 2021 17:13, UTC 57.00 24 Jan 2023 21:06, UTC 165.00 28 Oct 2022 19:59, UTC\\n1-Star Price 33.75 81.00 71.25 222.75\\n5-Star Price 17.50 42.00 45.60 115.50\\nAssessmentUnder Valued 25 Jan 2023 Significantly \\nUndervalued24 Jan \\n2023Significantly \\nUndervalued24 Jan \\n2023Under Valued 24 Jan 2023\\nMorningstar Rating QQQQ25 Jan 2023 22:28, UTC QQQQQ25 Jan 2023 22:28, UTC QQQQQ25 Jan 2023 22:28, UTC QQQQ25 Jan 2023 22:28, UTC\\nAnalyst Michael Hodel, Director Michael Hodel, Director Michael Hodel, Director Michael Hodel, Director\\nCapital Allocation Poor Standard Standard Standard\\nPrice/Fair Value 0.82 0.67 0.71 0.90\\nPrice/Sales 0.90 1.48 1.24 2.29\\nPrice/Book 1.12 2.14 1.86 2.59\\nPrice/Earnings 7.92 33.69 7.99 119.52\\nDividend Yield 5.79% 2.72% 6.40% —\\nMarket Cap 136.57 Bil 171.86 Bil 169.76 Bil 181.41 Bil\\n52-Week Range 14.46—22.84 28.39—50.98 32.79—55.51 103.77—154.38\\nInvestment Style Large Value Large Value Large Value Large Growth',\n",
       "│   │   'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 4 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®AT&T Inc T QQQQ  25 Jan 2023 22:28, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n20.42 USD\\n25 Jan 202325.00 USD\\n11 Apr 2022 03:30, UTC0.82136.57 USD Bil\\n25 Jan 2023\\nNarrow Stable Medium Poor ;;;;;\\n4 Jan 2023 06:00, UTC\\nMorningstar Valuation Model Summary\\nFinancials as of 25 Jan 2023 Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nRevenue (USD Mil) 113,238 118,208 120,741 121,939 124,557 128,196 132,267 136,747\\nOperating Income (USD Mil) 23,058 22,116 22,911 25,381 26,565 27,935 29,358 31,098\\nEBITDA (USD Mil) 51,574 44,978 13,434 46,956 47,988 49,327 50,148 52,216\\nAdjusted EBITDA (USD Mil) 40,570 39,849 13,434 42,956 44,640 46,510 48,633 51,073\\nNet Income (USD Mil) 11,284 21,661 -8,727 18,641 18,917 19,558 19,651 20,697\\nAdjusted Net Income (USD Mil) 11,284 21,661 18,311 20,651 21,231 22,197 21,911 22,877\\nFree Cash Flow To The Firm (USD Mil) 52,151 4,182 -27 11,474 13,581 15,032 16,393 16,776\\nWeighted Average Diluted Shares Outstanding (Mil) 7,183 7,199 7,587 7,200 7,200 7,200 7,200 7,200\\nEarnings Per Share (Diluted) (USD) 1.57 3.01 -1.15 2.59 2.63 2.72 2.73 2.87\\nAdjusted Earnings Per Share (Diluted) (USD) 1.57 3.01 2.41 2.87 2.95 3.08 3.04 3.18\\nDividends Per Share (USD) 2.08 2.08 1.35 1.11 1.11 1.11 1.11 1.11\\nMargins & Returns as of 25 Jan 2023 Actual Forecast\\n3 Year Avg 2020 2021 2022 2023 2024 2025 2026 2027 5 Year Avg\\nOperating Margin % 19.4 20.4 18.7 19.0 20.8 21.3 21.8 22.2 22.7 21.8\\nEBITDA Margin % — 45.5 38.1 11.1 38.5 38.5 38.5 37.9 38.2 —\\nAdjusted EBITDA Margin % 26.9 35.8 33.7 11.1 35.2 35.8 36.3 36.8 37.4 36.3\\nNet Margin % 7.0 10.0 18.3 -7.2 15.3 15.2 15.3 14.9 15.1 15.2\\nAdjusted Net Margin % 14.5 10.0 18.3 15.2 16.9 17.1 17.3 16.6 16.7 16.9\\nFree Cash Flow To The Firm Margin % 16.5 46.1 3.5 0.0 9.4 10.9 11.7 12.4 12.3 11.3\\nGrowth & Ratios as of 25 Jan 2023 Actual Forecast\\n3 Year CAGR 2020 2021 2022 2023 2024 2025 2026 2027 5 Year CAGR\\nRevenue Growth % — — 4.4 2.1 1.0 2.2 2.9 3.2 3.4 2.5\\nOperating Income Growth % — — -4.1 3.6 10.8 4.7 5.2 5.1 5.9 6.3\\nEBITDA Growth % 0.0 — — — — — — — — 0.0\\nAdjusted EBITDA Growth % -21.9 43.8 -1.8 -66.3 219.8 3.9 4.2 4.6 5.0 30.6\\nEarnings Per Share Growth % — — — — — — — — — 5.7\\nAdjusted Earnings Per Share Growth % — — 91.5 -19.8 18.8 2.8 4.6 -1.3 4.4 5.7\\nValuation as of 25 Jan 2023 Actual Forecast\\n2020 2021 2022 2023 2024 2025 2026 2027\\nPrice/Earnings 13.8 6.2 7.6 7.1 6.9 6.6 6.7 6.4\\nPrice/Sales 2.5 1.7 1.5 1.1 1.1 1.1 1.0 1.0\\nPrice/Book 1.0 1.8 1.4 1.4 1.2 1.1 1.0 0.9\\nPrice/Cash Flow 10.3 8.1 10.9 8.7 7.7 6.9 6.5 6.4\\nEV/EBITDA 11.4 9.4 26.5 6.7 6.4 6.2 5.9 5.6\\nEV/EBIT 20.1 17.0 15.6 11.3 10.8 10.3 9.8 9.2\\nDividend Yield % 9.6 11.2 7.3 5.4 5.4 5.4 5.4 5.4\\nDividend Payout % 132.4 69.1 -117.4 42.9 42.3 40.9 40.7 38.6\\nFree Cash Flow Yield % 9.7 12.4 9.2 11.5 13.0 14.4 15.4 15.7\\nOperating Performance / Profitability as of 25 Jan 2023 Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nROA % 2.1 4.5 -2.1 4.6 4.5 4.5 4.4 4.5\\nROE % 6.6 18.7 -10.7 19.1 17.4 16.3 15.0 14.4\\nROIC % 4.7 5.8 -1.6 8.1 8.1 8.2 8.3 8.6',\n",
       "│   │   'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 5 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®AT&T Inc T QQQQ  25 Jan 2023 22:28, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n20.42 USD\\n25 Jan 202325.00 USD\\n11 Apr 2022 03:30, UTC0.82136.57 USD Bil\\n25 Jan 2023\\nNarrow Stable Medium Poor ;;;;;\\n4 Jan 2023 06:00, UTC\\nFinancial Leverage (Reporting Currency) Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nDebt/Capital % 49.3 70.0 58.3 55.3 53.6 51.2 48.8 47.2\\nAssets/Equity 3.3 5.6 4.1 3.8 3.6 3.4 3.2 3.0\\nNet Debt/EBITDA 2.8 3.5 9.6 2.7 2.6 2.4 2.3 2.1\\nTotal Debt/EBITDA 3.9 4.4 10.1 3.1 3.1 2.9 2.8 2.7\\nEBITDA/ Net Interest Expense 5.1 7.6 2.2 7.2 7.4 7.8 8.1 8.5\\nForecast Revisions as of 25 Jan 2023 2023 2024 2025\\nPrior data as of 20 Oct 2022 Current Prior Current Prior Current Prior\\nFair Value Estimate Change (Trading Currency) 25.00 24.50 — — — —\\nRevenue (USD Mil) 121,939 121,142 124,557 122,919 128,196 126,244\\nOperating Income (USD Mil) 25,381 22,668 26,565 24,604 27,935 26,117\\nEBITDA (USD Mil) 42,956 40,418 44,640 42,854 46,510 44,867\\nNet Income (USD Mil) 20,651 19,073 21,231 20,359 22,197 21,530\\nEarnings Per Share (Diluted) (USD) 2.59 2.37 2.63 2.51 2.72 2.64\\nAdjusted Earnings Per Share  (Diluted) (USD) 2.87 2.67 2.95 2.85 3.08 3.02\\nDividends Per Share (USD) 1.11 1.35 1.11 1.11 1.11 1.11\\nKey Valuation Drivers as of 25 Jan 2023\\nCost of Equity % 9.0\\nPre-Tax Cost of Debt % 6.5\\nWeighted Average Cost of Capital % 7.4\\nLong-Run Tax Rate % 23.5\\nStage II EBI Growth Rate % 3.0\\nStage II Investment Rate % 12.0\\nPerpetuity Year 15\\nAdditional estimates and scenarios available for download at https://pitchbook.com/. Discounted Cash Flow Valuation as of 25 Jan 2023\\nUSD Mil\\nPresent Value Stage I 58,671\\nPresent Value Stage II 114,795\\nPresent Value Stage III 149,633\\nTotal Firm Value 323,100\\nCash and Equivalents 7,234\\nDebt -136,020\\nOther Adjustments -10,479\\nEquity Value 178,685\\nProjected Diluted Shares 7,200\\nFair Value per Share  (USD) 25.00',\n",
       "│   │   'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 6 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®AT&T Inc T QQQQ  25 Jan 2023 22:28, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n20.42 USD\\n25 Jan 202325.00 USD\\n11 Apr 2022 03:30, UTC0.82136.57 USD Bil\\n25 Jan 2023\\nNarrow Stable Medium Poor ;;;;;\\n4 Jan 2023 06:00, UTC\\nIncome Statement (USD) Actual Forecast \\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nRevenue (Mil)113,238 118,208 120,741 121,939 124,557 128,196 132,267 136,747\\nCost of Goods Sold (Mil) 72,667 78,233 79,808 78,982 79,917 81,685 83,633 85,673\\nGross Profit (Mil) 40,571 39,975 40,933 42,957 44,641 46,511 48,634 51,074\\nSelling, General, Administrative & Other Expenses (Mil) 1 1 1 1 1 1 1 1\\nAdvertising & Marketing Expenses — — — — — — — —\\nResearch & Development — — — — — — — —\\nDepreciation & Amortization (if reported separately) (Mil) 17,512 17,858 18,021 17,575 18,075 18,575 19,275 19,975\\nAdjusted Operating Income (Mil) 23,058 22,116 22,911 25,381 26,565 27,935 29,358 31,098\\nFinancial Non-Cash (Gains)/Losses (Mil) 0 0 27,498 0 0 0 0 0\\nIrregular Cash (Gains)/Losses (Mil) 0 0 0 -4,000 -3,349 -2,817 -1,515 -1,143\\nOperating Income (Mil) 23,058 22,116 -4,587 29,381 29,913 30,752 30,873 32,241\\nNet Interest Expense (Mil) 9,261 -6,451 -1,493 3,000 3,000 3,000 3,000 3,000\\nIncome Tax Expense (Mil) 965 5,220 3,780 6,068 6,325 6,522 6,550 6,872\\nAfter-Tax Items (Mil) -193 -207 -384 -203 -203 -203 -203 -203\\n(Minority Interest) (Mil) -1,355 -1,479 -1,469 -1,469 -1,469 -1,469 -1,469 -1,469\\nNet Income (Mil) 11,284 21,661 -8,727 18,641 18,917 19,558 19,651 20,697\\nAdjusted Net Income (Mil) 11,284 21,661 18,311 20,651 21,231 22,197 21,911 22,877\\nWeighted Average Diluted Shares Outstanding (Mil) 7,183 7,199 7,587 7,200 7,200 7,200 7,200 7,200\\nDiluted Earnings Per Share 1.57 3.01 -1.15 2.59 2.63 2.72 2.73 2.87\\nDiluted Adjusted Earnings Per Share 1.57 3.01 2.41 2.87 2.95 3.08 3.04 3.18\\nDividends Per Common Share (USD)2.08 2.08 1.35 1.11 1.11 1.11 1.11 1.11\\nEBITDA (Mil) 51,574 44,978 13,434 46,956 47,988 49,327 50,148 52,216\\nAdjusted EBITDA (Mil) 40,570 39,849 13,434 42,956 44,640 46,510 48,633 51,073',\n",
       "│   │   \"Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 7 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®AT&T Inc T QQQQ  25 Jan 2023 22:28, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n20.42 USD\\n25 Jan 202325.00 USD\\n11 Apr 2022 03:30, UTC0.82136.57 USD Bil\\n25 Jan 2023\\nNarrow Stable Medium Poor ;;;;;\\n4 Jan 2023 06:00, UTC\\nKey Cash Flow Items (USD) Actual Forecast as of 25 Jan\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nCash from Working Capital (Mil) 3,258 -2,659 4,128 -1,767 -895 -1,089 483 485\\n(Capital Expenditures) (Mil) -15,675 -16,527 -19,626 -24,022 -23,043 -21,793 -21,824 -21,879\\nDepreciation (Mil) 20,277 17,112 17,945 17,500 18,000 18,500 19,200 19,900\\nAmortization (Mil) 8,239 5,750 76 75 75 75 75 75\\nNet New (Investment), Organic (Mil) -8,875 -13,947 -3,451 -7,789 -5,438 -4,382 -2,141 -1,494\\n(Purchases)/Sales of Companies & Assets (Mil) 1,790 -16,713 -10,001 -5,000 -5,000 -5,000 -5,000 -5,000\\nNet New (Investment), Total (Mil) -7,085 -30,660 -13,452 -12,789 -10,438 -9,382 -7,141 -6,494\\nOther Non-Cash Items, From Cash Flows (Mil) 37,816 13,303 -4,383 75 75 75 75 75\\nFree Cash Flow to the Firm (Mil) 52,151 4,182 -27 11,474 13,581 15,032 16,393 16,776\\nBalance Sheet (USD) Actual Forecast \\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nAssets \\nCash and Equivalents (Mil) 9,740 19,223 3,701 2,678 9,202 13,453 18,030 26,858\\nInventory (Mil) 3,695 3,325 3,123 3,246 3,284 3,357 3,437 3,521\\nAccounts Receivable (Mil) 20,215 12,313 11,466 11,580 11,828 12,174 12,561 12,986\\nNet Property, Plant and Equipment (Mil) 152,029 121,649 149,259 155,781 160,824 164,117 166,741 168,721\\nGoodwill (Mil) 135,259 92,740 67,895 67,895 67,895 67,895 67,895 67,895\\nOther Intangibles (Mil) 146,316 119,221 129,446 134,371 139,296 144,221 149,146 154,071\\nOther Operating Assets (Mil) 56,727 57,207 34,430 34,430 34,430 34,430 34,430 34,430\\nNon-Operating Assets (Mil) 0 0 0 0 0 0 0 0\\nTotal Assets (Mil) 525,761 427,678 402,853 413,513 430,293 443,180 455,773 472,014\\nLiabilities \\nAccounts Payable  (Mil) 49,032 39,095 42,644 41,114 40,506 39,835 40,786 41,780\\nDebt (Mil) 157,245 176,876 136,020 134,027 137,460 137,169 135,843 138,385\\nOther Operating Liabilities (Mil) 121,968 105,681 110,472 114,006 117,036 119,318 120,628 120,628\\nNon-Operating Liabilities (Mil) 18,276 12,560 7,260 7,260 7,260 7,260 7,260 7,260\\nTotal Liabilities (Mil) 346,521 334,212 296,396 296,407 302,261 303,582 304,517 308,053\\nEquity \\nShareholders' Equity (Mil) 161,673 75,943 97,500 108,149 119,074 130,640 142,299 155,004\\nMinority Interest (Mil) 17,567 17,523 8,957 8,957 8,957 8,957 8,957 8,957\\nTotal Equity (Mil) 179,240 93,466 106,457 117,106 128,031 139,597 151,256 163,961\",\n",
       "│   │   \"Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 8 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\nMorningstar Equity Research Star Rating Methodology\\nOverview\\nAt the heart  of our valuation  system  is a detailed  projec-\\ntion of a company’s  future  cash  flows,  resulting  from  our \\nanalysts’  research.  Analysts  create  custom  industry  and \\ncompany  assumptions  to feed income  statement,  balance \\nsheet,  and capital  investment  assumptions  into our glob-\\nally standardized,  proprietary  discounted  cash  flow,  or \\nDCF,  modeling  templates.  We use scenario  analysis,  inde-\\npth competitive  advantage  analysis,  and a variety  of other \\nanalytical  tools  to augment  this process.  Moreover,  we \\nthink  analyzing  valuation  through  discounted  cash  flows \\npresents  a better  lens for viewing  cyclical  companies, \\nhigh-growth  firms,  businesses  with  finite  lives  (e.g., \\nmines),  or companies  expected  to generate  negative \\nearnings  over the next few years.  That said,  we don’t  dis-\\nmiss multiples  altogether  but rather  use them  as support-\\ning cross-checks  for our DCF-based  fair value  estimates. \\nWe also acknowledge  that DCF models  offer  their  own \\nchallenges  (including  a potential  proliferation  of estim-\\nated inputs  and the possibility  that the method  may miss \\nshortterm  market-price  movements),  but we believe  these \\nnegatives  are mitigated  by deep  analysis  and our \\nlongterm approach.\\nMorningstar’s  equity  research  group  (”we,”  “our”)  be-\\nlieves  that a company’s  intrinsic  worth  results  from  the \\nfuture cash flows it can generate. The Morningstar Rating \\nfor stocks  identifies  stocks  trading  at a discount  or premi-\\num to their  intrinsic  worth—or  fair value  estimate,  in \\nMorningstar  terminology.  Five-star  stocks  sell for the \\nbiggest  risk adjusted  discount  to their  fair values,  where-\\nas 1-star stocks trade at premiums to their intrinsic worth.\\nFour key components  drive  the Morningstar  rating:  (1) our \\nassessment  of the firm’s  economic  moat,  (2) our estimate \\nof the stock’s  fair value,  (3) our uncertainty  around  that \\nfair value  estimate  and (4) the current  market  price.  This \\nprocess  ultimately  culminates  in our singlepoint  star rat-\\ning.\\n1. Economic Moat\\nThe concept  of an economic  moat  plays  a vital role not \\nonly in our qualitative  assessment  of a firm’s  long-term \\ninvestment  potential,  but also in the actual  calculation  of \\nour fair value  estimates.  An economic  moat  is a structural \\nfeature  that allows  a firm to sustain  excess  profits  over a \\nlong  period  of time.  We define  economic  profits  as re-\\nturns  on invested  capital  (or ROIC)  over and above  our es-timate  of a firm’s  cost of capital,  or weighted  average \\ncost of capital  (or WACC).  Without  a moat,  profits  are \\nmore  susceptible  to competition.  We have  identified  five \\nsources  of economic  moats:  intangible  assets,  switching \\ncosts, network effect, cost advantage, and efficient scale.\\nCompanies  with a narrow  moat  are those  we believe  are \\nmore  likely  than  not to achieve  normalized  excess  returns \\nfor at least  the next 10 years.  Wide-moat  companies  are \\nthose  in which  we have  very high confidence  that excess \\nreturns  will remain  for 10 years,  with excess  returns  more \\nlikely  than  not to remain  for at least  20 years.  The longer \\na firm generates  economic  profits,  the higher  its intrinsic \\nvalue.  We believe  low-quality,  no-moat  companies  will \\nsee their  normalized  returns  gravitate  toward  the firm’s \\ncost of capital more quickly than companies with moats.\\nWhen  considering  a company's  moat,  we also assess \\nwhether  there  is a substantial  threat  of value  destruction, \\nstemming  from  risks  related  to ESG,  industry  disruption, \\nfinancial  health,  or other  idiosyncratic  issues.  In this con-\\ntext, a risk is considered  potentially  value  destructive  if its \\noccurrence  would  eliminate  a firm’s  economic  profit  on a \\ncumulative  or midcycle  basis.  If we deem  the probability \\nof occurrence  sufficiently  high,  we would  not characterize \\nthe company as possessing an economic moat.\\nTo assess the sustainability of excess profits, analysts per-\\nform  ongoing  assessments  of the moat  trend.  A firm’s \\nmoat  trend  is positive  in cases  where  we think  its sources \\nof competitive  advantage  are growing  stronger;  stable \\nwhere  we don’t  anticipate  changes  to competitive  ad-\\nvantages  over the next several  years;  or negative  when \\nwe see signs of deterioration.\\n2. Estimated Fair Value\\nCombining  our analysts’  financial  forecasts  with  the \\nfirm’s  economic  moat  helps  us assess  how long returns \\non invested  capital  are likely  to exceed  the firm’s  cost of \\ncapital.  Returns  of firms  with a wide  economic  moat  rat-\\ning are assumed  to fade  to the perpetuity  period  over a \\nlonger  period  of time  than  the returns  of narrow-moat \\nfirms,  and both  will fade  slower  than  no-moat  firms,  in-\\ncreasing our estimate of their intrinsic value.\\nOur model is divided into three distinct stages:\\nStage I: Explicit ForecastIn this stage,  which  can last five to 10 years,  analysts \\nmake  full financial  statement  forecasts,  including  items \\nsuch  as revenue,  profit  margins,  tax rates,  changes  in \\nworkingcapital  accounts,  and capital  spending.  Based  on \\nthese  projections,  we calculate  earnings  before  interest, \\nafter  taxes  (EBI)  and the net new investment  (NNI)  to de-\\nrive our annual free cash flow forecast.\\nStage II: Fade\\nThe second  stage  of our model  is the period  it will take \\nthe company’s  return  on new invested  capital—the  re-\\nturn on capital  of the next dollar  invested  (“RONIC”)—to \\ndecline  (or rise) to its cost of capital.  During  the Stage  II \\nperiod,  we use a formula  to approximate  cash  flows  in \\nlieu of explicitly  modeling  the income  statement,  balance \\nsheet,  and cash  flow statement  as we do in Stage  I. The \\nlength  of the second  stage  depends  on the strength  of \\nthe company’s  economic  moat.  We forecast  this period  to \\nlast anywhere  from  one year (for companies  with no eco-\\nnomic  moat)  to 10–15  years  or more  (for wide-moat  com-\\npanies).  During  this period,  cash  flows  are forecast  using \\nfour assumptions:  an average  growth  rate for EBI over the \\nperiod,  a normalized  investment  rate,  average  return  on \\nnew invested  capital  (RONIC),  and the number  of years \\nuntil  perpetuity,  when  excess  returns  cease.  The invest-\\nment  rate and return  on new invested  capital  decline  un-\\ntil a perpetuity  value  is calculated.  In the case  of firms \\nthat do not earn their  cost of capital,  we assume  marginal \\nROICs  rise to the firm’s  cost of capital  (usually  attribut-\\nable  to less reinvestment),  and we may truncate  the \\nsecond stage.\\nStage III: Perpetuity\\nOnce  a company’s  marginal  ROIC  hits its cost of capital, \\nwe calculate  a continuing  value,  using  a standard  per-\\npetuity  formula.  At perpetuity,  we assume  that any \\ngrowth  or decline  or investment  in the business  neither \\ncreates  nor destroys  value  and that any new investment \\nprovides a return in line with estimated WACC.\\nBecause  a dollar  earned  today  is worth  more  than  a dollar \\nearned  tomorrow,  we discount  our projections  of cash \\nflows  in stages  I, II, and III to arrive  at a total  present \\nvalue  of expected  future  cash  flows.  Because  we are \\nmodeling  free cash  flow to the firm—representing  cash \\navailable  to provide  a return  to all capital  providers—we \\ndiscount  future  cash  flows  using  the WACC,  which  is a \\nweighted  average  of the costs  of equity,  debt,  and pre-\\nferred  stock  (and  any other  funding  sources),  using  ex-\\npected  future  proportionate  long-term,  market-value \\nweights.\\n3. Uncertainty Around That Fair Value Estimate\\nMorningstar’s  Uncertainty  Rating  is designed  to capture \\nthe range  of potential  outcomes  for a company’s  intrinsic \\nvalue.  This rating  is used  to assign  the margin  of safety \\nrequired  before  investing,  which  in turn explicitly  drives \\nour stock  star rating  system.  The Uncertainty  Rating  is \",\n",
       "│   │   'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 9 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\nMorningstar Equity Research Star Rating Methodology\\n aimed  at identifying  the confidence  we should  have  in as-\\nsigning a fair value estimate for a given stock. \\nOur Uncertainty  Rating  is meant  to take into account  any-\\nthing  that can increase  the potential  dispersion  of future \\noutcomes  for the intrinsic  value  of a company,  and any-\\nthing  that can affect  our ability  to accurately  predict \\nthese  outcomes.  The rating  begins  with a suggested  rat-\\ning produced  by a quantitative  process  based  on the trail-\\ning 12-month  standard  deviation  of daily  stock  returns. \\nAn analyst  overlay  is then  applied,  with  analysts  using \\nthe suggested  rating,  historical  rating  data,  and their  own \\nknowledge  of the company  to inform  them  as they make \\nthe final Uncertainty  Rating  decision.  Ultimately,  the rat-\\ning decision  rests  with the analyst.  Analysts  take into ac-\\ncount  many  characteristics  when  making  their  final  de-\\ncision,  including  cyclical  factors,  operational  and financial \\nfactors  such  as leverage,  company-specific  events,  ESG \\nrisks,  and anything  else that might  increase  the potential \\ndispersion  of future  outcomes  and our ability  to estimate \\nthose outcomes. \\nOur recommended  margin  of safety—the  discount  to fair \\nvalue  demanded  before  we’d  recommend  buying  or \\nselling  the stock—widens  as our uncertainty  of the es-\\ntimated  value  of the equity  increases.  The more  uncertain \\nwe are about  the potential  dispersion  of outcomes,  the \\ngreater  the discount  we require  relative  to our estimate  of \\nthe value  of the firm before  we would  recommend  the \\npurchase  of the shares.  In addition,  the Uncertainty  Rat-\\ning provides  guidance  in portfolio  construction  based  on \\nrisk tolerance. \\nOur Uncertainty  Ratings  are: Low,  Medium,  High,  Very \\nHigh, and Extreme.\\nMargin of Safety\\nQualitative Analysis \\nUncertainty Ratings QQQQQ Rating QRating\\nLow 20% Discount 25% Premium\\nMedium 30% Discount 35% Premium\\nHigh 40% Discount 55% Premium\\nVery High 50% Discount 75% Premium\\nExtreme 75% Discount 300% Premium\\nOur uncertainty  rating  is based  on the interquartile  range, \\nor the middle  50% of potential  outcomes,  covering  the \\n25th percentile–75th  percentile.  This means  that when  a \\nstock  hits 5 stars,  we expect  there  is a 75% chance  that \\nthe intrinsic  value  of that stock  lies above  the current \\nmarket  price.  Similarly,  when  a stock  hits 1 star,  we ex-\\npect there  is a 75% chance  that the intrinsic  value  of that \\nstock lies below the current market price.\\n4. Market Price\\nThe market  prices  used  in this analysis  and noted  in the \\nreport  come  from  exchange  on which  the stock  is listed \\nwhich we believe is a reliable source.For more details about our methodology, please go to \\nhttps://shareholders.morningstar.com\\nMorningstar Star Rating for Stocks\\nOnce  we determine  the fair value  estimate  of a stock,  we \\ncompare  it with  the stock’s  current  market  price  on a \\ndaily  basis,  and the star rating  is automatically  re-calcu-\\nlated  at the market  close  on every  day the market  on \\nwhich  the stock  is listed  is open.  Our analysts  keep  close \\ntabs on the companies  they follow,  and, based  on thor-\\nough  and ongoing  analysis,  raise  or lower  their  fair value \\nestimates as warranted.\\nPlease  note,  there  is no predefined  distribution  of stars. \\nThat  is, the percentage  of stocks  that earn  5 stars  can \\nfluctuate  daily,  so the star ratings,  in the aggregate,  can \\nserve as a gauge of the broader market’s valuation. When \\nthere  are many  5-star  stocks,  the stock  market  as a whole \\nis more  undervalued,  in our opinion,  than  when  very few \\ncompanies garner our highest rating.\\nWe expect  that if our base-case  assumptions  are true the \\nmarket  price  will converge  on our fair value  estimate  over \\ntime  generally  within  three  years  (although  it is im-\\npossible  to predict  the exact  time frame  in which  market \\nprices may adjust).\\nOur star ratings  are guideposts  to a broad  audience  and \\nindividuals  must  consider  their  own specific  investment \\ngoals,  risk tolerance,  tax situation,  time horizon,  income \\nneeds,  and complete  investment  portfolio,  among  other factors.\\nThe Morningstar  Star Ratings  for stocks  are defined  be-\\nlow:\\nQQQQQ  We believe  appreciation  beyond  a fair risk ad-\\njusted  return  is highly  likely  over a multiyear  time frame. \\nScenario  analysis  developed  by our analysts  indicates \\nthat the current  market  price  represents  an excessively \\npessimistic  outlook,  limiting  downside  risk and maximiz-\\ning upside potential.\\nQQQQ We believe  appreciation  beyond  a fair risk-ad-\\njusted return is likely.\\nQQQ Indicates  our belief  that investors  are likely  to re-\\nceive  a fair risk-adjusted  return  (approximately  cost of \\nequity).\\nQQ We believe  investors  are likely  to receive  a less than \\nfair risk-adjusted return.\\nQ Indicates  a high probability  of undesirable  risk-adjus-\\nted returns  from  the current  market  price  over a multiyear \\ntime  frame,  based  on our analysis.  Scenario  analysis  by \\nour analysts  indicates  that the market  is pricing  in an ex-\\ncessively  optimistic  outlook,  limiting  upside  potential  and \\nleaving the investor exposed to Capital loss.\\nOther Definitions\\nLast Price:  Price  of the stock  as of the close  of the mar-\\nket of the last trading day before date of the report.',\n",
       "│   │   'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 10 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\nCapital  Allocation  Rating:  Our Capital  Allocation  (or \\nStewardship)  Rating  represents  our assessment  of the \\nquality  of management’s  capital  allocation,  with particu-\\nlar emphasis  on the firm’s  balance  sheet,  investments, \\nand shareholder  distributions.  Analysts  consider  compan-\\nies’ investment  strategy  and valuation,  balance  sheet \\nmanagement,  and dividend  and share  buyback  policies. \\nCorporate  governance  factors  are only considered  if they \\nare likely  to materially  impact  shareholder  value,  though \\neither  the balance  sheet,  investment,  or shareholder  dis-\\ntributions.  Analysts  assign  one of three  ratings:  \"Exem-\\nplary\",  \"Standard\",  or \"Poor\".  Analysts  judge  Capital  Alloc-\\nation  from  an equity  holder’s  perspective.  Ratings  are de-\\ntermined  on a forward  looking  and absolute  basis.  The \\nStandard  rating  is most  common  as most  managers  will \\nexhibit  neither  exceptionally  strong  nor poor capital  alloc-\\nation.\\nCapital  Allocation  (or Stewardship)  analysis  published  pri-\\nor to Dec. 9, 2020,  was determined  using  a different  pro-\\ncess.  Beyond  investment  strategy,  financial  leverage,  and \\ndividend  and share  buyback  policies,  analysts  also con-\\nsidered  execution,  compensation,  related  party  transac-\\ntions, and accounting practices in the rating.\\nCapital  Allocation  Rating:  Our Capital  Allocation  (or \\nStewardship)  Rating  represents  our assessment  of the \\nquality  of management’s  capital  allocation,  with particu-\\nlar emphasis  on the firm’s  balance  sheet,  investments, \\nand shareholder  distributions.  Analysts  consider  compan-\\nies’ investment  strategy  and valuation,  balance  sheet \\nmanagement,  and dividend  and share  buyback  policies. \\nCorporate  governance  factors  are only considered  if they \\nare likely  to materially  impact  shareholder  value,  though \\neither  the balance  sheet,  investment,  or shareholder  dis-\\ntributions.  Analysts  assign  one of three  ratings:  \"Exem-\\nplary\",  \"Standard\",  or \"Poor\".  Analysts  judge  Capital  Alloc-\\nation  from  an equity  holder’s  perspective.  Ratings  are de-\\ntermined  on a forward  looking  and absolute  basis.  The \\nStandard  rating  is most  common  as most  managers  will \\nexhibit  neither  exceptionally  strong  nor poor capital  alloc-\\nation.\\nCapital  Allocation  (or Stewardship)  analysis  published  pri-\\nor to Dec. 9, 2020,  was determined  using  a different  pro-\\ncess.  Beyond  investment  strategy,  financial  leverage,  and \\ndividend  and share  buyback  policies,  analysts  also con-\\nsidered  execution,  compensation,  related  party  transac-\\ntions, and accounting practices in the rating.\\nSustainalytics  ESG Risk Rating  Assessment: The ESG \\nRisk Rating  Assessment  is provided  by Sustainalytics;  a \\nMorningstar company.\\nSustainalytics’  ESG Risk Ratings  measure  the degree  to \\nwhich  company’s  economic  value  at risk is driven  by en-\\nvironment, social and governance (ESG) factors.Sustainalytics  analyzes  over 1,300  data points  to assess  a \\ncompany’s  exposure  to and management  of ESG risks.  In \\nother  words,  ESG Risk Ratings  measures  a company’s  un-\\nmanaged  ESG Risks  represented  as a quantitative  score. \\nUnmanaged  Risk is measured  on an open-ended  scale \\nstarting  at zero (no risk) with  lower  scores  representing \\nless unmanaged  risk and, for 95% of cases,  the unman-\\naged ESG Risk score is below 50.\\nBased  on their  quantitative  scores,  companies  are \\ngrouped  into one of five Risk Categories  (negligible,  low, \\nmedium,  high,  severe).  These  risk categories  are absolute, \\nmeaning  that a ‘high  risk’ assessment  reflects  a compar-\\nable degree  of unmanaged  ESG risk across  all subindus-\\ntries covered.\\nThe ESG Risk Rating  Assessment  is a visual  representa-\\ntion of Sustainalytics  ESG Risk Categories  on a 1 to 5 \\nscale.  Companies  with  Negligible  Risk = 5 Globes,  Low \\nRisk = 4, Medium  Risk = 3 Globes,  High  Risk = 2 Globes, \\nSevere  Risk = 1 Globe.  For more  information,  please  visit \\nsustainalytics.com/esg-ratings/\\nRatings  should  not be used  as the sole basis  in evaluating \\na company  or security.  Ratings  involve  unknown  risks and \\nuncertainties  which  may cause  our expectations  not to \\noccur  or to differ  significantly  from  what  was expected \\nand should  not be considered  an offer  or solicitation  to \\nbuy or sell a security.\\nRisk Warning\\nPlease  note  that investments  in securities  are subject  to \\nmarket  and other  risks and there  is no assurance  or guar-\\nantee  that the intended  investment  objectives  will be \\nachieved.  Past performance  of a security  may or may not \\nbe sustained  in future  and is no indication  of future  per-\\nformance.  A security  investment  return  and an investor’s \\nprincipal  value  will fluctuate  so that,  when  redeemed,  an \\ninvestor’s  shares  may be worth  more  or less than  their \\noriginal  cost.  A security’s  current  investment  performance \\nmay be lower  or higher  than  the investment  performance \\nnoted  within  the report.  Morningstar’s  Uncertainty  Rating \\nserves  as a useful  data  point  with  respect  to sensitivity \\nanalysis  of the assumptions  used  in our determining  a fair \\nvalue price.\\nGeneral Disclosure\\nUnless  otherwise  provided  in a separate  agreement,  re-\\ncipients  accessing  this report  may only use it in the coun-\\ntry in which  the Morningstar  distributor  is based.  Unless \\nstated  otherwise,  the original  distributor  of the report  is \\nMorningstar  Research  Services  LLC, a U.S.A.  domiciled \\nfinancial institution.\\nThis report  is for informational  purposes  only and has no \\nregard  to the specific  investment  objectives,  financial situation  or particular  needs  of any specific  recipient.  This \\npublication  is intended  to provide  information  to assist  in-\\nstitutional  investors  in making  their  own investment  de-\\ncisions,  not to provide  investment  advice  to any specific \\ninvestor.  Therefore,  investments  discussed  and recom-\\nmendations  made  herein  may not be suitable  for all in-\\nvestors:  recipients  must  exercise  their  own independent \\njudgment  as to the suitability  of such  investments  and re-\\ncommendations  in the light  of their  own investment  ob-\\njectives,  experience,  taxation  status  and financial  posi-\\ntion.\\nThe information,  data,  analyses  and opinions  presented \\nherein  are not warranted  to be accurate,  correct,  com-\\nplete  or timely.  Unless  otherwise  provided  in a separate \\nagreement,  neither  Morningstar,  Inc. or the Equity  Re-\\nsearch  Group  represents  that the report  contents  meet  all \\nof the presentation  and/or  disclosure  standards  applic-\\nable in the jurisdiction the recipient is located.\\nExcept  as otherwise  required  by law or provided  for in a \\nseparate  agreement,  the analyst,  Morningstar,  Inc. and \\nthe Equity  Research  Group  and their  officers,  directors \\nand employees  shall  not be responsible  or liable  for any \\ntrading  decisions,  damages  or other  losses  resulting  from, \\nor related  to, the information,  data,  analyses  or opinions \\nwithin  the report.  The Equity  Research  Group  encourages \\nrecipients  recipients  of this report  to read  all relevant  is-\\nsue documents  (e.g.,  prospectus)  pertaining  to the secur-\\nity concerned,  including  without  limitation,  information \\nrelevant  to its investment  objectives,  risks,  and costs  be-\\nfore making  an in vestment  decision  and when  deemed \\nnecessary,  to seek  the advice  of a legal,  tax, and/or  ac-\\ncounting professional.\\nThe Report  and its contents  are not directed  to, or inten-\\nded for distribution  to or use by, any person  or entity  who \\nis a citizen  or resident  of or located  in any locality,  state, \\ncountry  or other  jurisdiction  where  such  distribution,  pub-\\nlication,  availability  or use would  be contrary  to law or \\nregulation  or which  would  subject  Morningstar,  Inc. or its \\naffiliates  to any registration  or licensing  requirements  in \\nsuch jurisdiction.\\nWhere  this report  is made  available  in a language  other \\nthan  English  and in the case  of inconsistencies  between \\nthe English  and translated  versions  of the report,  the Eng-\\nlish version  will control  and supersede  any ambiguities \\nassociated  with  any part or section  of a report  that has \\nbeen  issued  in a foreign  language.  Neither  the analyst, \\nMorningstar,  Inc., or the Equity  Research  Group  guaran-\\ntees the accuracy of the translations.\\nThis report  may be distributed  in certain  localities,  coun-\\ntries  and/or  jurisdictions  (“Territories”)  by independent \\nthird  parties  or independent  intermediaries  and/or  distrib-\\nutors  (“Distributors”).  Such  Distributors  are not acting  as \\nagents  or representatives  of the analyst,  Morningstar, ',\n",
       "│   │   'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 11 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\nInc. or the Equity  Research  Group.  In Territories  where  a \\nDistributor  distributes  our report,  the Distributor  is solely \\nresponsible  for complying  with all applicable  regulations, \\nlaws,  rules,  circulars,  codes  and guidelines  established  by \\nlocal  and/or  regional  regulatory  bodies,  including  laws  in \\nconnection  with  the distribution  third-party  research  re-\\nports.\\nConflicts of Interest\\nuNo interests  are held by the analyst  with respect  to the \\nsecurity subject of this investment research report.\\nuMorningstar,  Inc. may hold a long position  in the se-\\ncurity  subject  of this investment  research  report  that \\nexceeds  0.5%  of the total  issued  share  capital  of the \\nsecurity.  To determine  if such  is the case,  please  click \\nhttp://msi.morningstar.com  and http://mdi.morning-\\nstar.com\\nuAnalysts’  compensation  is derived  from  Morningstar, \\nInc.’s  overall  earnings  and consists  of salary,  bonus \\nand in some cases restricted stock.\\nuNeither  Morningstar,  Inc. or the Equity  Research  Group \\nreceives  commissions  for providing  research  nor do \\nthey charge companies to be rated.\\nuNeither  Morningstar,  Inc. or the Equity  Research  Group \\nis a market  maker  or a liquidity  provider  of the security \\nnoted within this report.\\nuNeither  Morningstar,  Inc. or the Equity  Research  Group \\nhas been  a lead manager  or co-lead  manager  over the \\nprevious  12-months  of any publicly  disclosed  offer  of \\nfinancial instruments of the issuer.\\nuMorningstar,  Inc.’s  investment  management  group \\ndoes  have  arrangements  with  financial  institutions  to \\nprovide  portfolio  management/investment  advice  some \\nof which  an analyst  may issue  investment  research  re-\\nports  on. However,  analysts  do not have  authority  over \\nMorningstar’s  investment  management  group’s  busi-\\nness  arrangements  nor allow  employees  from  the in-\\nvestment  management  group  to participate  or influ-\\nence the analysis or opinion prepared by them.\\nuMorningstar,  Inc. is a publicly  traded  company  (Ticker \\nSymbol:  MORN)  and thus a financial  institution  the se-\\ncurity  of which  is the subject  of this report  may own \\nmore  than  5% of Morningstar,  Inc.’s  total  outstanding \\nshares.  Please  access  Morningstar,  Inc.’s  proxy  state-\\nment,  “Security  Ownership  of Certain  Beneficial  Own-\\ners and  Management”  section  https://\\nshareholders.morningstar.com/investor-relations/fin-\\nancials/sec-filings/default.aspx\\nuMorningstar,  Inc. may provide  the product  issuer  or its \\nrelated  entities  with services  or products  for a fee and \\non an arms’  length  basis  including  software  products \\nand licenses,  research  and consulting  services,  data \\nservices,  licenses  to republish  our ratings  and research \\nin their  promotional  material,  event  sponsorship  and \\nwebsite advertising.\\nFurther  information  on Morningstar,  Inc.’s  conflict  of in-terest  policies  is available  from  https://\\nshareholders.morningstar.com  Also,  please  note analysts \\nare subject  to the CFA Institute’s  Code  of Ethics  and \\nStandards of Professional Conduct.\\nFor a list of securities  which  the Equity  Research  Group \\ncurrently  covers  and provides  written  analysis  on please \\ncontact  your local  Morningstar  office.  In addition,  for his-\\ntorical  analysis  of securities  covered,  including  their  fair \\nvalue estimate, please contact your local office.\\nFor Recipients  in Australia:  This Report  has been  issued \\nand distributed  in Australia  by Morningstar  Australasia \\nPty Ltd (ABN:  95 090 665 544; ASFL:  240892 ). Morning-\\nstar Australasia  Pty Ltd is the provider  of the general  ad-\\nvice (‘the  Service’)  and takes  responsibility  for the produc-\\ntion of this report.  The Service  is provided  through  the re-\\nsearch of investment products.\\nTo the extent  the Report  contains  general  advice  it has \\nbeen  prepared  without  reference  to an investor’s  object-\\nives,  financial  situation  or needs.  Investors  should  con-\\nsider  the advice  in light  of these  matters  and, if applic-\\nable,  the relevant  Product  Disclosure  Statement  before \\nmaking  any decision  to invest.  Refer  to our Financial  Ser-\\nvices  Guide  (FSG)  for more  information  at http://\\nwww.morningstar.com.au/fsg.pdf\\nFor Recipients  in New  Zealand:  This report  has been  is-\\nsued  and distributed  by Morningstar  Australasia  Pty Ltd \\nand/or  Morningstar  Research  Ltd (together  ‘Morning-\\nstar’).  Morningstar  is the provider  of the regulated  finan-\\ncial advice  and takes  responsibility  for the production  of \\nthis report.  To the extent  the report  contains  regulated \\nfinancial advice it has been prepared without reference to \\nan investor’s  objectives,  financial  situation  or needs.  In-\\nvestors  should  consider  the advice  in light  of these  mat-\\nters and,  if applicable,  the relevant  Product  Disclosure \\nStatement  before  making  any decision  to invest.  Refer  to \\nour Financial  Advice  Provider  Disclosure  Statement  at \\nwww.morningstar.com.au/s/fapds.pdf  for more  informa-\\ntion.\\nFor Recipients  in Hong  Kong:  The Report  is distributed \\nby Morningstar  Investment  Management  Asia Limited, \\nwhich  is regulated  by the Hong  Kong  Securities  and Fu-\\ntures  Commission  to provide  services  to professional  in-\\nvestors  only.  Neither  Morningstar  Investment  Manage-\\nment  Asia Limited,  nor its representatives,  are acting  or \\nwill be deemed  to be acting  as an investment  profession-\\nal to any recipients  of this information  unless  expressly \\nagreed  to by Morningstar  Investment  Management  Asia \\nLimited.  For enquiries  regarding  this research,  please  con-\\ntact a Morningstar  Investment  Management  Asia Limited \\nLicensed  Representative  at https://shareholders.morning-\\nstar.com\\nFor recipients  in India:  This Investment  Research  is is-sued  by Morningstar  Investment  Adviser  India  Private \\nLimited.  Morningstar  Investment  Adviser  India  Private \\nLimited  is registered  with  the Securities  and Exchange \\nBoard  of India  (Registration  number  INA000001357 ) and \\nprovides  investment  advice  and research.  Morningstar  In-\\nvestment  Adviser  India  Private  Limited  has not been  the \\nsubject  of any disciplinary  action  by SEBI  or any other  leg-\\nal/regulatory  body.  Morningstar  Investment  Adviser  India \\nPrivate  Limited  is a wholly  owned  subsidiary  of Morning-\\nstar Investment  Management  LLC. In India,  Morningstar \\nInvestment  Adviser  India  Private  Limited  has one asso-\\nciate,  Morningstar  India  Private  Limited,  which  provides \\ndata related services, financial data analysis and software \\ndevelopment.  The Research  Analyst  has not served  as an \\nofficer,  director  or employee  of the fund  company  within \\nthe last 12 months,  nor has it or its associates  engaged  in \\nmarket making activity for the fund company.\\n*The  Conflicts  of Interest  disclosure  above  also applies  to \\nrelatives  and associates  of Manager  Research  Analysts  in \\nIndia  # The Conflicts  of Interest  disclosure  above  also ap-\\nplies  to associates  of Manager  Research  Analysts  in In-\\ndia. The terms  and conditions  on which  Morningstar  In-\\nvestment  Adviser  India  Private  Limited  offers  Investment \\nResearch  to clients,  varies  from  client  to client,  and are \\ndetailed in the respective client agreement.\\nFor recipients  in Japan:  The Report  is distributed  by Ib-\\nbotson  Associates  Japan,  Inc., which  is regulated  by Fin-\\nancial  Services  Agency.  Neither  Ibbotson  Associates  Ja-\\npan,  Inc., nor its representatives,  are acting  or will be \\ndeemed  to be acting  as an investment  professional  to any \\nrecipients of this information.\\nFor recipients  in Singapore:  For Institutional  Investor \\naudiences  only.  Recipients  of this report  should  contact \\ntheir  financial  professional  in Singapore  in relation  to this \\nreport.  Morningstar,  Inc., and its affiliates,  relies  on cer-\\ntain exemptions  (Financial  Advisers  Regulations,  Section \\n32B and 32C) to provide  its investment  research  to recipi-\\nents in Singapore.'\n",
       "│   ]\n",
       "}\n",
       "
\n" ], "text/plain": [ "\u001b[1m{\u001b[0m\n", "\u001b[2;32m│ \u001b[0m\u001b[32m'message'\u001b[0m: \u001b[32m'Successfully uploaded ATT_StockAnalystNote_Annual_20230125.pdf'\u001b[0m,\n", "\u001b[2;32m│ \u001b[0m\u001b[32m'ATT_StockAnalystNote_Annual_20230125.pdf'\u001b[0m: \u001b[1m[\u001b[0m\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 1 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Financial Summary and Key Statistics \\nActual Forecast\\n2021 2022 2023 2024\\nRevenue \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 118,208 120,741 121,939 124,557\\nRevenue Growth % 4.4 2.1 1.0 2.2\\nOperating Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 22,116 22,911 25,381 26,565\\nOperating Margin % 18.7 19.0 20.8 21.3\\nAdjusted EBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 39,849 13,434 42,956 44,640\\nAdjusted EBITDA Margin % 33.7 11.1 35.2 35.8\\nEarnings Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mDiluted\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 3.01 -1.15 2.59 2.63\\nAdjusted Earnings Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mDiluted\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 3.01 2.41 2.87 2.95\\nAdjusted EPS Growth % 91.5 -19.8 18.8 2.8\\nPrice/Earnings 6.2 7.6 7.1 6.9\\nPrice/Book 1.8 1.4 1.4 1.2\\nEV/EBITDA 9.4 26.5 6.7 6.4\\nFree Cash Flow Yield % 12.4 9.2 11.5 13.0\\nSource: Morningstar Valuation Model. Data as of 25 Jan 2023.AT&T Inc T QQQQ 25 Jan 2023 22:28, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n20.42 USD\\n25 Jan 202325.00 USD\\n11 Apr 2022 03:30, UTC0.82136.57 USD Bil\\n25 Jan 2023\\nNarrow Stable Medium Poor ;;;;;\\n4 Jan 2023 06:00, UTC\\nMichael Hodel, CFA\\nDirector\\nMorningstar\\n+1 \u001b[0m\u001b[32m(\u001b[0m\u001b[32m312\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 696-6578\\nmichael.hodel@morningstar.com\\nContents\\nAnalyst Note \u001b[0m\u001b[32m(\u001b[0m\u001b[32m25 Jan 2023\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nBusiness Description\\nFinancials\\nResearch Methodology for Valuing \\nCompanies\\nImportant Disclosure\\nThe conduct of Morningstar’s analysts is governed by Code of \\nEthics/Code of Conduct Policy, Personal Security Trading Policy \\n\u001b[0m\u001b[32m(\u001b[0m\u001b[32mor an equivalent of\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, and Investment Research Policy. For \\ninformation regarding conflicts of interest, please visit: http://\\nglobal.morningstar.com/equitydisclosures.\\nThe primary analyst covering this company does not own its \\nstock.\\nReporting Currency: USD | Trading Currency: USD\\nCurrency amounts expressed with \"$\" are in U.S. dollars \\n\u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m unless otherwise denoted.\\n1The ESG Risk Rating Assessment is a representation of \\nSustainalytics’ ESG Risk Rating.Competitors Slowed AT&T During Fourth Quarter, but Growth \\nRemains Solid \\nAnalyst Note Michael Hodel, CFA, Director, 25 Jan 2023\\nAT&T isn’t attracting as many wireless customers as it was a year ago, but it continues to post solid results. \\nCustomer retention was strong, but Verizon and T-Mobile seem to have effectively countered AT &T’s promotional \\nefforts, which began in earnest about two years ago. Management expects wireless customer additions will \\ndecline in 2023 as industry growth slows from the torrid pace of the past couple years, which will benefit cash \\nflow, but the firm also signaled that it will work to continue gaining share. We are maintaining our $25 fair value \\nestimate and think the stock remains modestly undervalued.\\nAT&T added 656,000 postpaid phone customers during the fourth quarter, down from 884,000 a year ago and \\nplacing it between T-Mobile \u001b[0m\u001b[32m(\u001b[0m\u001b[32m927,000 net additions\u001b[0m\u001b[32m)\u001b[0m\u001b[32m and Verizon \u001b[0m\u001b[32m(\u001b[0m\u001b[32m217,000\u001b[0m\u001b[32m)\u001b[0m\u001b[32m. The rate of customer defections \\n\u001b[0m\u001b[32m(\u001b[0m\u001b[32mchurn\u001b[0m\u001b[32m)\u001b[0m\u001b[32m was flat versus the prior quarter, bucking the usual seasonal uptick as the impact of price increases taken \\nover the summer appears to have run its course. On the weak side, however, the firm’s share of new customer \\ndecisions \u001b[0m\u001b[32m(\u001b[0m\u001b[32mgross customer additions\u001b[0m\u001b[32m)\u001b[0m\u001b[32m dipped during the quarter. Of the big three carriers, only AT &T attracted \\nfewer gross additions than in the prior quarter.\\nWireless service revenue increased 5.2% versus the prior year during the quarter. AT &T’s postpaid phone \\ncustomer base has grown 3.5% over the past year and revenue per customer was 2.5% higher. The slowdown in \\ncustomer additions and a slower customer upgrade pace pulled equipment revenue lower but provided a lift to \\nprofitability. The wireless segment EBITDA margin increased nearly 3 percentage points versus a year ago to 38%.\\nFree cash flow hit $14.1 billion for the year, modestly topping management’s revised target, which it cut from $16 '\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 2 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®AT&T Inc T QQQQ 25 Jan 2023 22:28, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n20.42 USD\\n25 Jan 202325.00 USD\\n11 Apr 2022 03:30, UTC0.82136.57 USD Bil\\n25 Jan 2023\\nNarrow Stable Medium Poor ;;;;;\\n4 Jan 2023 06:00, UTC\\nSector Industry\\ni Communication \\nServicesTelecom Services\\nBusiness Description\\nThe wireless business contributes about two \\nthirds of AT&T’s revenue following the \\nspinoff of WarnerMedia. The firm is the \\nthird-largest U.S. wireless carrier, connecting \\n69 million postpaid and 18 million prepaid \\nphone customers. Fixed-line enterprise \\nservices, which account for about 20% of \\nrevenue, include internet access, private \\nnetworking, security, voice, and wholesale \\nnetwork capacity. Residential fixed-line \\nservices, about 10% of revenue, primarily \\nconsist of broadband internet access service. \\nAT&T also has a sizable presence in Mexico, \\nserving 21 million customers, but this \\nbusiness only accounts for 2% of revenue. \\nThe firm still holds a 70% equity stake in \\nsatellite television provider DirecTV but does \\nnot consolidate this business in its financial \\nstatements.billion over the summer. AT &T expects to generate $16 billion of free cash flow in 2023 while it continues to \\ninvest aggressively in its network but with slower customer growth easing working capital needs.\\nConsumer fixed-line revenue increased 2.2% year over year with broadband sales up 6.4%. Broadband net \\ncustomer losses were modestly disappointing at 64,000, up from 20,000 a year ago despite continued expansion \\nof the fiber footprint. We expect AT &T to add net broadband customers in 2023 as a growing portion of \\ncustomers are on the fiber network. Broadband pricing remains solid, as average revenue per fiber customer \\nincreased 9% versus a year ago to nearly $65 per month. EBITDA margins in this segment also continue to expand \\nnicely, hitting 37% during the quarter, up from 31% a year ago.\\nManagement dialed back fiber network expansion plans somewhat, claiming it will build to around 2.0 million-2.5 \\nmillion new customer locations annually through 2025, down from 3.5 million-4.0 million targeted previously and \\naround 3 million built in 2022. The firm still plans to reach 30 million customer locations, though this figure \\nincludes both homes and businesses. AT &T is excited about its venture with BlackRock to build fiber networks \\noutside of the traditional AT &T footprint and the prospects for winning government subsidies to build in rural \\nareas, stating that it will invest capital in whichever format proves the most profitable. We agree that the firm \\nshould explore all options on the table, but we aren’t clear yet why management is slowing the pace of the core \\nnetwork buildout. K'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 3 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®AT&T Inc T QQQQ 25 Jan 2023 22:28, UTC\\nPrice vs. Fair Value \\n010203040Fair Value: 25.00\\n11 Apr 2022 03:30, UTC\\nLast Close: 20.42\\nOver Valued\\nUnder Valued\\n2018 2019 2020 2021 2022 YTD\\n0.77 1.06 0.80 0.68 0.74 0.82 Price/Fair Value\\n-21.45 44.08 -21.08 -7.23 -1.33 12.43 Total Return %\\nMorningstar Rating\\nCompetitors\\nAT&T Inc T Comcast Corp Class A CMCSA Verizon Communications Inc VZ T-Mobile US Inc TMUS\\nFair Value\\n25.00\\nUncertainty : Medium\\nLast Close\\n20.42\\nFair Value\\n60.00\\nUncertainty : Medium\\nLast Close\\n40.10\\nFair Value\\n57.00\\nUncertainty : Low\\nLast Close\\n40.33\\nFair Value\\n165.00\\nUncertainty : Medium\\nLast Close\\n148.07\\nEconomic Moat\\n Narrow\\n Wide\\n Narrow\\n Narrow\\nMoat Trend Stable Stable Stable Stable\\nCurrency USD USD USD USD\\nFair Value 25.00 11 Apr 2022 03:30, UTC 60.00 29 Jul 2021 17:13, UTC 57.00 24 Jan 2023 21:06, UTC 165.00 28 Oct 2022 19:59, UTC\\n1-Star Price 33.75 81.00 71.25 222.75\\n5-Star Price 17.50 42.00 45.60 115.50\\nAssessmentUnder Valued 25 Jan 2023 Significantly \\nUndervalued24 Jan \\n2023Significantly \\nUndervalued24 Jan \\n2023Under Valued 24 Jan 2023\\nMorningstar Rating QQQQ25 Jan 2023 22:28, UTC QQQQQ25 Jan 2023 22:28, UTC QQQQQ25 Jan 2023 22:28, UTC QQQQ25 Jan 2023 22:28, UTC\\nAnalyst Michael Hodel, Director Michael Hodel, Director Michael Hodel, Director Michael Hodel, Director\\nCapital Allocation Poor Standard Standard Standard\\nPrice/Fair Value 0.82 0.67 0.71 0.90\\nPrice/Sales 0.90 1.48 1.24 2.29\\nPrice/Book 1.12 2.14 1.86 2.59\\nPrice/Earnings 7.92 33.69 7.99 119.52\\nDividend Yield 5.79% 2.72% 6.40% —\\nMarket Cap 136.57 Bil 171.86 Bil 169.76 Bil 181.41 Bil\\n52-Week Range 14.46—22.84 28.39—50.98 32.79—55.51 103.77—154.38\\nInvestment Style Large Value Large Value Large Value Large Growth'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 4 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®AT&T Inc T QQQQ 25 Jan 2023 22:28, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n20.42 USD\\n25 Jan 202325.00 USD\\n11 Apr 2022 03:30, UTC0.82136.57 USD Bil\\n25 Jan 2023\\nNarrow Stable Medium Poor ;;;;;\\n4 Jan 2023 06:00, UTC\\nMorningstar Valuation Model Summary\\nFinancials as of 25 Jan 2023 Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nRevenue \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 113,238 118,208 120,741 121,939 124,557 128,196 132,267 136,747\\nOperating Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 23,058 22,116 22,911 25,381 26,565 27,935 29,358 31,098\\nEBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 51,574 44,978 13,434 46,956 47,988 49,327 50,148 52,216\\nAdjusted EBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 40,570 39,849 13,434 42,956 44,640 46,510 48,633 51,073\\nNet Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 11,284 21,661 -8,727 18,641 18,917 19,558 19,651 20,697\\nAdjusted Net Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 11,284 21,661 18,311 20,651 21,231 22,197 21,911 22,877\\nFree Cash Flow To The Firm \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 52,151 4,182 -27 11,474 13,581 15,032 16,393 16,776\\nWeighted Average Diluted Shares Outstanding \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 7,183 7,199 7,587 7,200 7,200 7,200 7,200 7,200\\nEarnings Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mDiluted\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 1.57 3.01 -1.15 2.59 2.63 2.72 2.73 2.87\\nAdjusted Earnings Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mDiluted\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 1.57 3.01 2.41 2.87 2.95 3.08 3.04 3.18\\nDividends Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2.08 2.08 1.35 1.11 1.11 1.11 1.11 1.11\\nMargins & Returns as of 25 Jan 2023 Actual Forecast\\n3 Year Avg 2020 2021 2022 2023 2024 2025 2026 2027 5 Year Avg\\nOperating Margin % 19.4 20.4 18.7 19.0 20.8 21.3 21.8 22.2 22.7 21.8\\nEBITDA Margin % — 45.5 38.1 11.1 38.5 38.5 38.5 37.9 38.2 —\\nAdjusted EBITDA Margin % 26.9 35.8 33.7 11.1 35.2 35.8 36.3 36.8 37.4 36.3\\nNet Margin % 7.0 10.0 18.3 -7.2 15.3 15.2 15.3 14.9 15.1 15.2\\nAdjusted Net Margin % 14.5 10.0 18.3 15.2 16.9 17.1 17.3 16.6 16.7 16.9\\nFree Cash Flow To The Firm Margin % 16.5 46.1 3.5 0.0 9.4 10.9 11.7 12.4 12.3 11.3\\nGrowth & Ratios as of 25 Jan 2023 Actual Forecast\\n3 Year CAGR 2020 2021 2022 2023 2024 2025 2026 2027 5 Year CAGR\\nRevenue Growth % — — 4.4 2.1 1.0 2.2 2.9 3.2 3.4 2.5\\nOperating Income Growth % — — -4.1 3.6 10.8 4.7 5.2 5.1 5.9 6.3\\nEBITDA Growth % 0.0 — — — — — — — — 0.0\\nAdjusted EBITDA Growth % -21.9 43.8 -1.8 -66.3 219.8 3.9 4.2 4.6 5.0 30.6\\nEarnings Per Share Growth % — — — — — — — — — 5.7\\nAdjusted Earnings Per Share Growth % — — 91.5 -19.8 18.8 2.8 4.6 -1.3 4.4 5.7\\nValuation as of 25 Jan 2023 Actual Forecast\\n2020 2021 2022 2023 2024 2025 2026 2027\\nPrice/Earnings 13.8 6.2 7.6 7.1 6.9 6.6 6.7 6.4\\nPrice/Sales 2.5 1.7 1.5 1.1 1.1 1.1 1.0 1.0\\nPrice/Book 1.0 1.8 1.4 1.4 1.2 1.1 1.0 0.9\\nPrice/Cash Flow 10.3 8.1 10.9 8.7 7.7 6.9 6.5 6.4\\nEV/EBITDA 11.4 9.4 26.5 6.7 6.4 6.2 5.9 5.6\\nEV/EBIT 20.1 17.0 15.6 11.3 10.8 10.3 9.8 9.2\\nDividend Yield % 9.6 11.2 7.3 5.4 5.4 5.4 5.4 5.4\\nDividend Payout % 132.4 69.1 -117.4 42.9 42.3 40.9 40.7 38.6\\nFree Cash Flow Yield % 9.7 12.4 9.2 11.5 13.0 14.4 15.4 15.7\\nOperating Performance / Profitability as of 25 Jan 2023 Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nROA % 2.1 4.5 -2.1 4.6 4.5 4.5 4.4 4.5\\nROE % 6.6 18.7 -10.7 19.1 17.4 16.3 15.0 14.4\\nROIC % 4.7 5.8 -1.6 8.1 8.1 8.2 8.3 8.6'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 5 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®AT&T Inc T QQQQ 25 Jan 2023 22:28, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n20.42 USD\\n25 Jan 202325.00 USD\\n11 Apr 2022 03:30, UTC0.82136.57 USD Bil\\n25 Jan 2023\\nNarrow Stable Medium Poor ;;;;;\\n4 Jan 2023 06:00, UTC\\nFinancial Leverage \u001b[0m\u001b[32m(\u001b[0m\u001b[32mReporting Currency\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nDebt/Capital % 49.3 70.0 58.3 55.3 53.6 51.2 48.8 47.2\\nAssets/Equity 3.3 5.6 4.1 3.8 3.6 3.4 3.2 3.0\\nNet Debt/EBITDA 2.8 3.5 9.6 2.7 2.6 2.4 2.3 2.1\\nTotal Debt/EBITDA 3.9 4.4 10.1 3.1 3.1 2.9 2.8 2.7\\nEBITDA/ Net Interest Expense 5.1 7.6 2.2 7.2 7.4 7.8 8.1 8.5\\nForecast Revisions as of 25 Jan 2023 2023 2024 2025\\nPrior data as of 20 Oct 2022 Current Prior Current Prior Current Prior\\nFair Value Estimate Change \u001b[0m\u001b[32m(\u001b[0m\u001b[32mTrading Currency\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 25.00 24.50 — — — —\\nRevenue \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 121,939 121,142 124,557 122,919 128,196 126,244\\nOperating Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 25,381 22,668 26,565 24,604 27,935 26,117\\nEBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 42,956 40,418 44,640 42,854 46,510 44,867\\nNet Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 20,651 19,073 21,231 20,359 22,197 21,530\\nEarnings Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mDiluted\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2.59 2.37 2.63 2.51 2.72 2.64\\nAdjusted Earnings Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mDiluted\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2.87 2.67 2.95 2.85 3.08 3.02\\nDividends Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 1.11 1.35 1.11 1.11 1.11 1.11\\nKey Valuation Drivers as of 25 Jan 2023\\nCost of Equity % 9.0\\nPre-Tax Cost of Debt % 6.5\\nWeighted Average Cost of Capital % 7.4\\nLong-Run Tax Rate % 23.5\\nStage II EBI Growth Rate % 3.0\\nStage II Investment Rate % 12.0\\nPerpetuity Year 15\\nAdditional estimates and scenarios available for download at https://pitchbook.com/. Discounted Cash Flow Valuation as of 25 Jan 2023\\nUSD Mil\\nPresent Value Stage I 58,671\\nPresent Value Stage II 114,795\\nPresent Value Stage III 149,633\\nTotal Firm Value 323,100\\nCash and Equivalents 7,234\\nDebt -136,020\\nOther Adjustments -10,479\\nEquity Value 178,685\\nProjected Diluted Shares 7,200\\nFair Value per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 25.00'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 6 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®AT&T Inc T QQQQ 25 Jan 2023 22:28, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n20.42 USD\\n25 Jan 202325.00 USD\\n11 Apr 2022 03:30, UTC0.82136.57 USD Bil\\n25 Jan 2023\\nNarrow Stable Medium Poor ;;;;;\\n4 Jan 2023 06:00, UTC\\nIncome Statement \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Actual Forecast \\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nRevenue \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m113,238 118,208 120,741 121,939 124,557 128,196 132,267 136,747\\nCost of Goods Sold \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 72,667 78,233 79,808 78,982 79,917 81,685 83,633 85,673\\nGross Profit \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 40,571 39,975 40,933 42,957 44,641 46,511 48,634 51,074\\nSelling, General, Administrative & Other Expenses \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 1 1 1 1 1 1 1 1\\nAdvertising & Marketing Expenses — — — — — — — —\\nResearch & Development — — — — — — — —\\nDepreciation & Amortization \u001b[0m\u001b[32m(\u001b[0m\u001b[32mif reported separately\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 17,512 17,858 18,021 17,575 18,075 18,575 19,275 19,975\\nAdjusted Operating Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 23,058 22,116 22,911 25,381 26,565 27,935 29,358 31,098\\nFinancial Non-Cash \u001b[0m\u001b[32m(\u001b[0m\u001b[32mGains\u001b[0m\u001b[32m)\u001b[0m\u001b[32m/Losses \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 0 0 27,498 0 0 0 0 0\\nIrregular Cash \u001b[0m\u001b[32m(\u001b[0m\u001b[32mGains\u001b[0m\u001b[32m)\u001b[0m\u001b[32m/Losses \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 0 0 0 -4,000 -3,349 -2,817 -1,515 -1,143\\nOperating Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 23,058 22,116 -4,587 29,381 29,913 30,752 30,873 32,241\\nNet Interest Expense \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 9,261 -6,451 -1,493 3,000 3,000 3,000 3,000 3,000\\nIncome Tax Expense \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 965 5,220 3,780 6,068 6,325 6,522 6,550 6,872\\nAfter-Tax Items \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m -193 -207 -384 -203 -203 -203 -203 -203\\n\u001b[0m\u001b[32m(\u001b[0m\u001b[32mMinority Interest\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m -1,355 -1,479 -1,469 -1,469 -1,469 -1,469 -1,469 -1,469\\nNet Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 11,284 21,661 -8,727 18,641 18,917 19,558 19,651 20,697\\nAdjusted Net Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 11,284 21,661 18,311 20,651 21,231 22,197 21,911 22,877\\nWeighted Average Diluted Shares Outstanding \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 7,183 7,199 7,587 7,200 7,200 7,200 7,200 7,200\\nDiluted Earnings Per Share 1.57 3.01 -1.15 2.59 2.63 2.72 2.73 2.87\\nDiluted Adjusted Earnings Per Share 1.57 3.01 2.41 2.87 2.95 3.08 3.04 3.18\\nDividends Per Common Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m2.08 2.08 1.35 1.11 1.11 1.11 1.11 1.11\\nEBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 51,574 44,978 13,434 46,956 47,988 49,327 50,148 52,216\\nAdjusted EBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 40,570 39,849 13,434 42,956 44,640 46,510 48,633 51,073'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m\"Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 7 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®AT&T Inc T QQQQ 25 Jan 2023 22:28, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n20.42 USD\\n25 Jan 202325.00 USD\\n11 Apr 2022 03:30, UTC0.82136.57 USD Bil\\n25 Jan 2023\\nNarrow Stable Medium Poor ;;;;;\\n4 Jan 2023 06:00, UTC\\nKey Cash Flow Items \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Actual Forecast as of 25 Jan\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nCash from Working Capital \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 3,258 -2,659 4,128 -1,767 -895 -1,089 483 485\\n\u001b[0m\u001b[32m(\u001b[0m\u001b[32mCapital Expenditures\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m -15,675 -16,527 -19,626 -24,022 -23,043 -21,793 -21,824 -21,879\\nDepreciation \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 20,277 17,112 17,945 17,500 18,000 18,500 19,200 19,900\\nAmortization \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 8,239 5,750 76 75 75 75 75 75\\nNet New \u001b[0m\u001b[32m(\u001b[0m\u001b[32mInvestment\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, Organic \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m -8,875 -13,947 -3,451 -7,789 -5,438 -4,382 -2,141 -1,494\\n\u001b[0m\u001b[32m(\u001b[0m\u001b[32mPurchases\u001b[0m\u001b[32m)\u001b[0m\u001b[32m/Sales of Companies & Assets \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 1,790 -16,713 -10,001 -5,000 -5,000 -5,000 -5,000 -5,000\\nNet New \u001b[0m\u001b[32m(\u001b[0m\u001b[32mInvestment\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, Total \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m -7,085 -30,660 -13,452 -12,789 -10,438 -9,382 -7,141 -6,494\\nOther Non-Cash Items, From Cash Flows \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 37,816 13,303 -4,383 75 75 75 75 75\\nFree Cash Flow to the Firm \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 52,151 4,182 -27 11,474 13,581 15,032 16,393 16,776\\nBalance Sheet \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Actual Forecast \\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nAssets \\nCash and Equivalents \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 9,740 19,223 3,701 2,678 9,202 13,453 18,030 26,858\\nInventory \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 3,695 3,325 3,123 3,246 3,284 3,357 3,437 3,521\\nAccounts Receivable \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 20,215 12,313 11,466 11,580 11,828 12,174 12,561 12,986\\nNet Property, Plant and Equipment \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 152,029 121,649 149,259 155,781 160,824 164,117 166,741 168,721\\nGoodwill \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 135,259 92,740 67,895 67,895 67,895 67,895 67,895 67,895\\nOther Intangibles \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 146,316 119,221 129,446 134,371 139,296 144,221 149,146 154,071\\nOther Operating Assets \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 56,727 57,207 34,430 34,430 34,430 34,430 34,430 34,430\\nNon-Operating Assets \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 0 0 0 0 0 0 0 0\\nTotal Assets \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 525,761 427,678 402,853 413,513 430,293 443,180 455,773 472,014\\nLiabilities \\nAccounts Payable \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 49,032 39,095 42,644 41,114 40,506 39,835 40,786 41,780\\nDebt \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 157,245 176,876 136,020 134,027 137,460 137,169 135,843 138,385\\nOther Operating Liabilities \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 121,968 105,681 110,472 114,006 117,036 119,318 120,628 120,628\\nNon-Operating Liabilities \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 18,276 12,560 7,260 7,260 7,260 7,260 7,260 7,260\\nTotal Liabilities \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 346,521 334,212 296,396 296,407 302,261 303,582 304,517 308,053\\nEquity \\nShareholders' Equity \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 161,673 75,943 97,500 108,149 119,074 130,640 142,299 155,004\\nMinority Interest \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 17,567 17,523 8,957 8,957 8,957 8,957 8,957 8,957\\nTotal Equity \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 179,240 93,466 106,457 117,106 128,031 139,597 151,256 163,961\"\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m\"Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 8 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\nMorningstar Equity Research Star Rating Methodology\\nOverview\\nAt the heart of our valuation system is a detailed projec-\\ntion of a company’s future cash flows, resulting from our \\nanalysts’ research. Analysts create custom industry and \\ncompany assumptions to feed income statement, balance \\nsheet, and capital investment assumptions into our glob-\\nally standardized, proprietary discounted cash flow, or \\nDCF, modeling templates. We use scenario analysis, inde-\\npth competitive advantage analysis, and a variety of other \\nanalytical tools to augment this process. Moreover, we \\nthink analyzing valuation through discounted cash flows \\npresents a better lens for viewing cyclical companies, \\nhigh-growth firms, businesses with finite lives \u001b[0m\u001b[32m(\u001b[0m\u001b[32me.g., \\nmines\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, or companies expected to generate negative \\nearnings over the next few years. That said, we don’t dis-\\nmiss multiples altogether but rather use them as support-\\ning cross-checks for our DCF-based fair value estimates. \\nWe also acknowledge that DCF models offer their own \\nchallenges \u001b[0m\u001b[32m(\u001b[0m\u001b[32mincluding a potential proliferation of estim-\\nated inputs and the possibility that the method may miss \\nshortterm market-price movements\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, but we believe these \\nnegatives are mitigated by deep analysis and our \\nlongterm approach.\\nMorningstar’s equity research group \u001b[0m\u001b[32m(\u001b[0m\u001b[32m”we,” “our”\u001b[0m\u001b[32m)\u001b[0m\u001b[32m be-\\nlieves that a company’s intrinsic worth results from the \\nfuture cash flows it can generate. The Morningstar Rating \\nfor stocks identifies stocks trading at a discount or premi-\\num to their intrinsic worth—or fair value estimate, in \\nMorningstar terminology. Five-star stocks sell for the \\nbiggest risk adjusted discount to their fair values, where-\\nas 1-star stocks trade at premiums to their intrinsic worth.\\nFour key components drive the Morningstar rating: \u001b[0m\u001b[32m(\u001b[0m\u001b[32m1\u001b[0m\u001b[32m)\u001b[0m\u001b[32m our \\nassessment of the firm’s economic moat, \u001b[0m\u001b[32m(\u001b[0m\u001b[32m2\u001b[0m\u001b[32m)\u001b[0m\u001b[32m our estimate \\nof the stock’s fair value, \u001b[0m\u001b[32m(\u001b[0m\u001b[32m3\u001b[0m\u001b[32m)\u001b[0m\u001b[32m our uncertainty around that \\nfair value estimate and \u001b[0m\u001b[32m(\u001b[0m\u001b[32m4\u001b[0m\u001b[32m)\u001b[0m\u001b[32m the current market price. This \\nprocess ultimately culminates in our singlepoint star rat-\\ning.\\n1. Economic Moat\\nThe concept of an economic moat plays a vital role not \\nonly in our qualitative assessment of a firm’s long-term \\ninvestment potential, but also in the actual calculation of \\nour fair value estimates. An economic moat is a structural \\nfeature that allows a firm to sustain excess profits over a \\nlong period of time. We define economic profits as re-\\nturns on invested capital \u001b[0m\u001b[32m(\u001b[0m\u001b[32mor ROIC\u001b[0m\u001b[32m)\u001b[0m\u001b[32m over and above our es-timate of a firm’s cost of capital, or weighted average \\ncost of capital \u001b[0m\u001b[32m(\u001b[0m\u001b[32mor WACC\u001b[0m\u001b[32m)\u001b[0m\u001b[32m. Without a moat, profits are \\nmore susceptible to competition. We have identified five \\nsources of economic moats: intangible assets, switching \\ncosts, network effect, cost advantage, and efficient scale.\\nCompanies with a narrow moat are those we believe are \\nmore likely than not to achieve normalized excess returns \\nfor at least the next 10 years. Wide-moat companies are \\nthose in which we have very high confidence that excess \\nreturns will remain for 10 years, with excess returns more \\nlikely than not to remain for at least 20 years. The longer \\na firm generates economic profits, the higher its intrinsic \\nvalue. We believe low-quality, no-moat companies will \\nsee their normalized returns gravitate toward the firm’s \\ncost of capital more quickly than companies with moats.\\nWhen considering a company's moat, we also assess \\nwhether there is a substantial threat of value destruction, \\nstemming from risks related to ESG, industry disruption, \\nfinancial health, or other idiosyncratic issues. In this con-\\ntext, a risk is considered potentially value destructive if its \\noccurrence would eliminate a firm’s economic profit on a \\ncumulative or midcycle basis. If we deem the probability \\nof occurrence sufficiently high, we would not characterize \\nthe company as possessing an economic moat.\\nTo assess the sustainability of excess profits, analysts per-\\nform ongoing assessments of the moat trend. A firm’s \\nmoat trend is positive in cases where we think its sources \\nof competitive advantage are growing stronger; stable \\nwhere we don’t anticipate changes to competitive ad-\\nvantages over the next several years; or negative when \\nwe see signs of deterioration.\\n2. Estimated Fair Value\\nCombining our analysts’ financial forecasts with the \\nfirm’s economic moat helps us assess how long returns \\non invested capital are likely to exceed the firm’s cost of \\ncapital. Returns of firms with a wide economic moat rat-\\ning are assumed to fade to the perpetuity period over a \\nlonger period of time than the returns of narrow-moat \\nfirms, and both will fade slower than no-moat firms, in-\\ncreasing our estimate of their intrinsic value.\\nOur model is divided into three distinct stages:\\nStage I: Explicit ForecastIn this stage, which can last five to 10 years, analysts \\nmake full financial statement forecasts, including items \\nsuch as revenue, profit margins, tax rates, changes in \\nworkingcapital accounts, and capital spending. Based on \\nthese projections, we calculate earnings before interest, \\nafter taxes \u001b[0m\u001b[32m(\u001b[0m\u001b[32mEBI\u001b[0m\u001b[32m)\u001b[0m\u001b[32m and the net new investment \u001b[0m\u001b[32m(\u001b[0m\u001b[32mNNI\u001b[0m\u001b[32m)\u001b[0m\u001b[32m to de-\\nrive our annual free cash flow forecast.\\nStage II: Fade\\nThe second stage of our model is the period it will take \\nthe company’s return on new invested capital—the re-\\nturn on capital of the next dollar invested \u001b[0m\u001b[32m(\u001b[0m\u001b[32m“RONIC”\u001b[0m\u001b[32m)\u001b[0m\u001b[32m—to \\ndecline \u001b[0m\u001b[32m(\u001b[0m\u001b[32mor rise\u001b[0m\u001b[32m)\u001b[0m\u001b[32m to its cost of capital. During the Stage II \\nperiod, we use a formula to approximate cash flows in \\nlieu of explicitly modeling the income statement, balance \\nsheet, and cash flow statement as we do in Stage I. The \\nlength of the second stage depends on the strength of \\nthe company’s economic moat. We forecast this period to \\nlast anywhere from one year \u001b[0m\u001b[32m(\u001b[0m\u001b[32mfor companies with no eco-\\nnomic moat\u001b[0m\u001b[32m)\u001b[0m\u001b[32m to 10–15 years or more \u001b[0m\u001b[32m(\u001b[0m\u001b[32mfor wide-moat com-\\npanies\u001b[0m\u001b[32m)\u001b[0m\u001b[32m. During this period, cash flows are forecast using \\nfour assumptions: an average growth rate for EBI over the \\nperiod, a normalized investment rate, average return on \\nnew invested capital \u001b[0m\u001b[32m(\u001b[0m\u001b[32mRONIC\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, and the number of years \\nuntil perpetuity, when excess returns cease. The invest-\\nment rate and return on new invested capital decline un-\\ntil a perpetuity value is calculated. In the case of firms \\nthat do not earn their cost of capital, we assume marginal \\nROICs rise to the firm’s cost of capital \u001b[0m\u001b[32m(\u001b[0m\u001b[32musually attribut-\\nable to less reinvestment\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, and we may truncate the \\nsecond stage.\\nStage III: Perpetuity\\nOnce a company’s marginal ROIC hits its cost of capital, \\nwe calculate a continuing value, using a standard per-\\npetuity formula. At perpetuity, we assume that any \\ngrowth or decline or investment in the business neither \\ncreates nor destroys value and that any new investment \\nprovides a return in line with estimated WACC.\\nBecause a dollar earned today is worth more than a dollar \\nearned tomorrow, we discount our projections of cash \\nflows in stages I, II, and III to arrive at a total present \\nvalue of expected future cash flows. Because we are \\nmodeling free cash flow to the firm—representing cash \\navailable to provide a return to all capital providers—we \\ndiscount future cash flows using the WACC, which is a \\nweighted average of the costs of equity, debt, and pre-\\nferred stock \u001b[0m\u001b[32m(\u001b[0m\u001b[32mand any other funding sources\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, using ex-\\npected future proportionate long-term, market-value \\nweights.\\n3. Uncertainty Around That Fair Value Estimate\\nMorningstar’s Uncertainty Rating is designed to capture \\nthe range of potential outcomes for a company’s intrinsic \\nvalue. This rating is used to assign the margin of safety \\nrequired before investing, which in turn explicitly drives \\nour stock star rating system. The Uncertainty Rating is \"\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 9 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\nMorningstar Equity Research Star Rating Methodology\\n aimed at identifying the confidence we should have in as-\\nsigning a fair value estimate for a given stock. \\nOur Uncertainty Rating is meant to take into account any-\\nthing that can increase the potential dispersion of future \\noutcomes for the intrinsic value of a company, and any-\\nthing that can affect our ability to accurately predict \\nthese outcomes. The rating begins with a suggested rat-\\ning produced by a quantitative process based on the trail-\\ning 12-month standard deviation of daily stock returns. \\nAn analyst overlay is then applied, with analysts using \\nthe suggested rating, historical rating data, and their own \\nknowledge of the company to inform them as they make \\nthe final Uncertainty Rating decision. Ultimately, the rat-\\ning decision rests with the analyst. Analysts take into ac-\\ncount many characteristics when making their final de-\\ncision, including cyclical factors, operational and financial \\nfactors such as leverage, company-specific events, ESG \\nrisks, and anything else that might increase the potential \\ndispersion of future outcomes and our ability to estimate \\nthose outcomes. \\nOur recommended margin of safety—the discount to fair \\nvalue demanded before we’d recommend buying or \\nselling the stock—widens as our uncertainty of the es-\\ntimated value of the equity increases. The more uncertain \\nwe are about the potential dispersion of outcomes, the \\ngreater the discount we require relative to our estimate of \\nthe value of the firm before we would recommend the \\npurchase of the shares. In addition, the Uncertainty Rat-\\ning provides guidance in portfolio construction based on \\nrisk tolerance. \\nOur Uncertainty Ratings are: Low, Medium, High, Very \\nHigh, and Extreme.\\nMargin of Safety\\nQualitative Analysis \\nUncertainty Ratings QQQQQ Rating QRating\\nLow 20% Discount 25% Premium\\nMedium 30% Discount 35% Premium\\nHigh 40% Discount 55% Premium\\nVery High 50% Discount 75% Premium\\nExtreme 75% Discount 300% Premium\\nOur uncertainty rating is based on the interquartile range, \\nor the middle 50% of potential outcomes, covering the \\n25th percentile–75th percentile. This means that when a \\nstock hits 5 stars, we expect there is a 75% chance that \\nthe intrinsic value of that stock lies above the current \\nmarket price. Similarly, when a stock hits 1 star, we ex-\\npect there is a 75% chance that the intrinsic value of that \\nstock lies below the current market price.\\n4. Market Price\\nThe market prices used in this analysis and noted in the \\nreport come from exchange on which the stock is listed \\nwhich we believe is a reliable source.For more details about our methodology, please go to \\nhttps://shareholders.morningstar.com\\nMorningstar Star Rating for Stocks\\nOnce we determine the fair value estimate of a stock, we \\ncompare it with the stock’s current market price on a \\ndaily basis, and the star rating is automatically re-calcu-\\nlated at the market close on every day the market on \\nwhich the stock is listed is open. Our analysts keep close \\ntabs on the companies they follow, and, based on thor-\\nough and ongoing analysis, raise or lower their fair value \\nestimates as warranted.\\nPlease note, there is no predefined distribution of stars. \\nThat is, the percentage of stocks that earn 5 stars can \\nfluctuate daily, so the star ratings, in the aggregate, can \\nserve as a gauge of the broader market’s valuation. When \\nthere are many 5-star stocks, the stock market as a whole \\nis more undervalued, in our opinion, than when very few \\ncompanies garner our highest rating.\\nWe expect that if our base-case assumptions are true the \\nmarket price will converge on our fair value estimate over \\ntime generally within three years \u001b[0m\u001b[32m(\u001b[0m\u001b[32malthough it is im-\\npossible to predict the exact time frame in which market \\nprices may adjust\u001b[0m\u001b[32m)\u001b[0m\u001b[32m.\\nOur star ratings are guideposts to a broad audience and \\nindividuals must consider their own specific investment \\ngoals, risk tolerance, tax situation, time horizon, income \\nneeds, and complete investment portfolio, among other factors.\\nThe Morningstar Star Ratings for stocks are defined be-\\nlow:\\nQQQQQ We believe appreciation beyond a fair risk ad-\\njusted return is highly likely over a multiyear time frame. \\nScenario analysis developed by our analysts indicates \\nthat the current market price represents an excessively \\npessimistic outlook, limiting downside risk and maximiz-\\ning upside potential.\\nQQQQ We believe appreciation beyond a fair risk-ad-\\njusted return is likely.\\nQQQ Indicates our belief that investors are likely to re-\\nceive a fair risk-adjusted return \u001b[0m\u001b[32m(\u001b[0m\u001b[32mapproximately cost of \\nequity\u001b[0m\u001b[32m)\u001b[0m\u001b[32m.\\nQQ We believe investors are likely to receive a less than \\nfair risk-adjusted return.\\nQ Indicates a high probability of undesirable risk-adjus-\\nted returns from the current market price over a multiyear \\ntime frame, based on our analysis. Scenario analysis by \\nour analysts indicates that the market is pricing in an ex-\\ncessively optimistic outlook, limiting upside potential and \\nleaving the investor exposed to Capital loss.\\nOther Definitions\\nLast Price: Price of the stock as of the close of the mar-\\nket of the last trading day before date of the report.'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 10 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\nCapital Allocation Rating: Our Capital Allocation \u001b[0m\u001b[32m(\u001b[0m\u001b[32mor \\nStewardship\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Rating represents our assessment of the \\nquality of management’s capital allocation, with particu-\\nlar emphasis on the firm’s balance sheet, investments, \\nand shareholder distributions. Analysts consider compan-\\nies’ investment strategy and valuation, balance sheet \\nmanagement, and dividend and share buyback policies. \\nCorporate governance factors are only considered if they \\nare likely to materially impact shareholder value, though \\neither the balance sheet, investment, or shareholder dis-\\ntributions. Analysts assign one of three ratings: \"Exem-\\nplary\", \"Standard\", or \"Poor\". Analysts judge Capital Alloc-\\nation from an equity holder’s perspective. Ratings are de-\\ntermined on a forward looking and absolute basis. The \\nStandard rating is most common as most managers will \\nexhibit neither exceptionally strong nor poor capital alloc-\\nation.\\nCapital Allocation \u001b[0m\u001b[32m(\u001b[0m\u001b[32mor Stewardship\u001b[0m\u001b[32m)\u001b[0m\u001b[32m analysis published pri-\\nor to Dec. 9, 2020, was determined using a different pro-\\ncess. Beyond investment strategy, financial leverage, and \\ndividend and share buyback policies, analysts also con-\\nsidered execution, compensation, related party transac-\\ntions, and accounting practices in the rating.\\nCapital Allocation Rating: Our Capital Allocation \u001b[0m\u001b[32m(\u001b[0m\u001b[32mor \\nStewardship\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Rating represents our assessment of the \\nquality of management’s capital allocation, with particu-\\nlar emphasis on the firm’s balance sheet, investments, \\nand shareholder distributions. Analysts consider compan-\\nies’ investment strategy and valuation, balance sheet \\nmanagement, and dividend and share buyback policies. \\nCorporate governance factors are only considered if they \\nare likely to materially impact shareholder value, though \\neither the balance sheet, investment, or shareholder dis-\\ntributions. Analysts assign one of three ratings: \"Exem-\\nplary\", \"Standard\", or \"Poor\". Analysts judge Capital Alloc-\\nation from an equity holder’s perspective. Ratings are de-\\ntermined on a forward looking and absolute basis. The \\nStandard rating is most common as most managers will \\nexhibit neither exceptionally strong nor poor capital alloc-\\nation.\\nCapital Allocation \u001b[0m\u001b[32m(\u001b[0m\u001b[32mor Stewardship\u001b[0m\u001b[32m)\u001b[0m\u001b[32m analysis published pri-\\nor to Dec. 9, 2020, was determined using a different pro-\\ncess. Beyond investment strategy, financial leverage, and \\ndividend and share buyback policies, analysts also con-\\nsidered execution, compensation, related party transac-\\ntions, and accounting practices in the rating.\\nSustainalytics ESG Risk Rating Assessment: The ESG \\nRisk Rating Assessment is provided by Sustainalytics; a \\nMorningstar company.\\nSustainalytics’ ESG Risk Ratings measure the degree to \\nwhich company’s economic value at risk is driven by en-\\nvironment, social and governance \u001b[0m\u001b[32m(\u001b[0m\u001b[32mESG\u001b[0m\u001b[32m)\u001b[0m\u001b[32m factors.Sustainalytics analyzes over 1,300 data points to assess a \\ncompany’s exposure to and management of ESG risks. In \\nother words, ESG Risk Ratings measures a company’s un-\\nmanaged ESG Risks represented as a quantitative score. \\nUnmanaged Risk is measured on an open-ended scale \\nstarting at zero \u001b[0m\u001b[32m(\u001b[0m\u001b[32mno risk\u001b[0m\u001b[32m)\u001b[0m\u001b[32m with lower scores representing \\nless unmanaged risk and, for 95% of cases, the unman-\\naged ESG Risk score is below 50.\\nBased on their quantitative scores, companies are \\ngrouped into one of five Risk Categories \u001b[0m\u001b[32m(\u001b[0m\u001b[32mnegligible, low, \\nmedium, high, severe\u001b[0m\u001b[32m)\u001b[0m\u001b[32m. These risk categories are absolute, \\nmeaning that a ‘high risk’ assessment reflects a compar-\\nable degree of unmanaged ESG risk across all subindus-\\ntries covered.\\nThe ESG Risk Rating Assessment is a visual representa-\\ntion of Sustainalytics ESG Risk Categories on a 1 to 5 \\nscale. Companies with Negligible Risk = 5 Globes, Low \\nRisk = 4, Medium Risk = 3 Globes, High Risk = 2 Globes, \\nSevere Risk = 1 Globe. For more information, please visit \\nsustainalytics.com/esg-ratings/\\nRatings should not be used as the sole basis in evaluating \\na company or security. Ratings involve unknown risks and \\nuncertainties which may cause our expectations not to \\noccur or to differ significantly from what was expected \\nand should not be considered an offer or solicitation to \\nbuy or sell a security.\\nRisk Warning\\nPlease note that investments in securities are subject to \\nmarket and other risks and there is no assurance or guar-\\nantee that the intended investment objectives will be \\nachieved. Past performance of a security may or may not \\nbe sustained in future and is no indication of future per-\\nformance. A security investment return and an investor’s \\nprincipal value will fluctuate so that, when redeemed, an \\ninvestor’s shares may be worth more or less than their \\noriginal cost. A security’s current investment performance \\nmay be lower or higher than the investment performance \\nnoted within the report. Morningstar’s Uncertainty Rating \\nserves as a useful data point with respect to sensitivity \\nanalysis of the assumptions used in our determining a fair \\nvalue price.\\nGeneral Disclosure\\nUnless otherwise provided in a separate agreement, re-\\ncipients accessing this report may only use it in the coun-\\ntry in which the Morningstar distributor is based. Unless \\nstated otherwise, the original distributor of the report is \\nMorningstar Research Services LLC, a U.S.A. domiciled \\nfinancial institution.\\nThis report is for informational purposes only and has no \\nregard to the specific investment objectives, financial situation or particular needs of any specific recipient. This \\npublication is intended to provide information to assist in-\\nstitutional investors in making their own investment de-\\ncisions, not to provide investment advice to any specific \\ninvestor. Therefore, investments discussed and recom-\\nmendations made herein may not be suitable for all in-\\nvestors: recipients must exercise their own independent \\njudgment as to the suitability of such investments and re-\\ncommendations in the light of their own investment ob-\\njectives, experience, taxation status and financial posi-\\ntion.\\nThe information, data, analyses and opinions presented \\nherein are not warranted to be accurate, correct, com-\\nplete or timely. Unless otherwise provided in a separate \\nagreement, neither Morningstar, Inc. or the Equity Re-\\nsearch Group represents that the report contents meet all \\nof the presentation and/or disclosure standards applic-\\nable in the jurisdiction the recipient is located.\\nExcept as otherwise required by law or provided for in a \\nseparate agreement, the analyst, Morningstar, Inc. and \\nthe Equity Research Group and their officers, directors \\nand employees shall not be responsible or liable for any \\ntrading decisions, damages or other losses resulting from, \\nor related to, the information, data, analyses or opinions \\nwithin the report. The Equity Research Group encourages \\nrecipients recipients of this report to read all relevant is-\\nsue documents \u001b[0m\u001b[32m(\u001b[0m\u001b[32me.g., prospectus\u001b[0m\u001b[32m)\u001b[0m\u001b[32m pertaining to the secur-\\nity concerned, including without limitation, information \\nrelevant to its investment objectives, risks, and costs be-\\nfore making an in vestment decision and when deemed \\nnecessary, to seek the advice of a legal, tax, and/or ac-\\ncounting professional.\\nThe Report and its contents are not directed to, or inten-\\nded for distribution to or use by, any person or entity who \\nis a citizen or resident of or located in any locality, state, \\ncountry or other jurisdiction where such distribution, pub-\\nlication, availability or use would be contrary to law or \\nregulation or which would subject Morningstar, Inc. or its \\naffiliates to any registration or licensing requirements in \\nsuch jurisdiction.\\nWhere this report is made available in a language other \\nthan English and in the case of inconsistencies between \\nthe English and translated versions of the report, the Eng-\\nlish version will control and supersede any ambiguities \\nassociated with any part or section of a report that has \\nbeen issued in a foreign language. Neither the analyst, \\nMorningstar, Inc., or the Equity Research Group guaran-\\ntees the accuracy of the translations.\\nThis report may be distributed in certain localities, coun-\\ntries and/or jurisdictions \u001b[0m\u001b[32m(\u001b[0m\u001b[32m“Territories”\u001b[0m\u001b[32m)\u001b[0m\u001b[32m by independent \\nthird parties or independent intermediaries and/or distrib-\\nutors \u001b[0m\u001b[32m(\u001b[0m\u001b[32m“Distributors”\u001b[0m\u001b[32m)\u001b[0m\u001b[32m. Such Distributors are not acting as \\nagents or representatives of the analyst, Morningstar, '\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Analyst Note | Report as of 25 Jan 2023 23:04, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NEW YORK STOCK EXCHANGE, INC. Page 11 of 11\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\nInc. or the Equity Research Group. In Territories where a \\nDistributor distributes our report, the Distributor is solely \\nresponsible for complying with all applicable regulations, \\nlaws, rules, circulars, codes and guidelines established by \\nlocal and/or regional regulatory bodies, including laws in \\nconnection with the distribution third-party research re-\\nports.\\nConflicts of Interest\\nuNo interests are held by the analyst with respect to the \\nsecurity subject of this investment research report.\\nuMorningstar, Inc. may hold a long position in the se-\\ncurity subject of this investment research report that \\nexceeds 0.5% of the total issued share capital of the \\nsecurity. To determine if such is the case, please click \\nhttp://msi.morningstar.com and http://mdi.morning-\\nstar.com\\nuAnalysts’ compensation is derived from Morningstar, \\nInc.’s overall earnings and consists of salary, bonus \\nand in some cases restricted stock.\\nuNeither Morningstar, Inc. or the Equity Research Group \\nreceives commissions for providing research nor do \\nthey charge companies to be rated.\\nuNeither Morningstar, Inc. or the Equity Research Group \\nis a market maker or a liquidity provider of the security \\nnoted within this report.\\nuNeither Morningstar, Inc. or the Equity Research Group \\nhas been a lead manager or co-lead manager over the \\nprevious 12-months of any publicly disclosed offer of \\nfinancial instruments of the issuer.\\nuMorningstar, Inc.’s investment management group \\ndoes have arrangements with financial institutions to \\nprovide portfolio management/investment advice some \\nof which an analyst may issue investment research re-\\nports on. However, analysts do not have authority over \\nMorningstar’s investment management group’s busi-\\nness arrangements nor allow employees from the in-\\nvestment management group to participate or influ-\\nence the analysis or opinion prepared by them.\\nuMorningstar, Inc. is a publicly traded company \u001b[0m\u001b[32m(\u001b[0m\u001b[32mTicker \\nSymbol: MORN\u001b[0m\u001b[32m)\u001b[0m\u001b[32m and thus a financial institution the se-\\ncurity of which is the subject of this report may own \\nmore than 5% of Morningstar, Inc.’s total outstanding \\nshares. Please access Morningstar, Inc.’s proxy state-\\nment, “Security Ownership of Certain Beneficial Own-\\ners and Management” section https://\\nshareholders.morningstar.com/investor-relations/fin-\\nancials/sec-filings/default.aspx\\nuMorningstar, Inc. may provide the product issuer or its \\nrelated entities with services or products for a fee and \\non an arms’ length basis including software products \\nand licenses, research and consulting services, data \\nservices, licenses to republish our ratings and research \\nin their promotional material, event sponsorship and \\nwebsite advertising.\\nFurther information on Morningstar, Inc.’s conflict of in-terest policies is available from https://\\nshareholders.morningstar.com Also, please note analysts \\nare subject to the CFA Institute’s Code of Ethics and \\nStandards of Professional Conduct.\\nFor a list of securities which the Equity Research Group \\ncurrently covers and provides written analysis on please \\ncontact your local Morningstar office. In addition, for his-\\ntorical analysis of securities covered, including their fair \\nvalue estimate, please contact your local office.\\nFor Recipients in Australia: This Report has been issued \\nand distributed in Australia by Morningstar Australasia \\nPty Ltd \u001b[0m\u001b[32m(\u001b[0m\u001b[32mABN: 95 090 665 544; ASFL: 240892 \u001b[0m\u001b[32m)\u001b[0m\u001b[32m. Morning-\\nstar Australasia Pty Ltd is the provider of the general ad-\\nvice \u001b[0m\u001b[32m(\u001b[0m\u001b[32m‘the Service’\u001b[0m\u001b[32m)\u001b[0m\u001b[32m and takes responsibility for the produc-\\ntion of this report. The Service is provided through the re-\\nsearch of investment products.\\nTo the extent the Report contains general advice it has \\nbeen prepared without reference to an investor’s object-\\nives, financial situation or needs. Investors should con-\\nsider the advice in light of these matters and, if applic-\\nable, the relevant Product Disclosure Statement before \\nmaking any decision to invest. Refer to our Financial Ser-\\nvices Guide \u001b[0m\u001b[32m(\u001b[0m\u001b[32mFSG\u001b[0m\u001b[32m)\u001b[0m\u001b[32m for more information at http://\\nwww.morningstar.com.au/fsg.pdf\\nFor Recipients in New Zealand: This report has been is-\\nsued and distributed by Morningstar Australasia Pty Ltd \\nand/or Morningstar Research Ltd \u001b[0m\u001b[32m(\u001b[0m\u001b[32mtogether ‘Morning-\\nstar’\u001b[0m\u001b[32m)\u001b[0m\u001b[32m. Morningstar is the provider of the regulated finan-\\ncial advice and takes responsibility for the production of \\nthis report. To the extent the report contains regulated \\nfinancial advice it has been prepared without reference to \\nan investor’s objectives, financial situation or needs. In-\\nvestors should consider the advice in light of these mat-\\nters and, if applicable, the relevant Product Disclosure \\nStatement before making any decision to invest. Refer to \\nour Financial Advice Provider Disclosure Statement at \\nwww.morningstar.com.au/s/fapds.pdf for more informa-\\ntion.\\nFor Recipients in Hong Kong: The Report is distributed \\nby Morningstar Investment Management Asia Limited, \\nwhich is regulated by the Hong Kong Securities and Fu-\\ntures Commission to provide services to professional in-\\nvestors only. Neither Morningstar Investment Manage-\\nment Asia Limited, nor its representatives, are acting or \\nwill be deemed to be acting as an investment profession-\\nal to any recipients of this information unless expressly \\nagreed to by Morningstar Investment Management Asia \\nLimited. For enquiries regarding this research, please con-\\ntact a Morningstar Investment Management Asia Limited \\nLicensed Representative at https://shareholders.morning-\\nstar.com\\nFor recipients in India: This Investment Research is is-sued by Morningstar Investment Adviser India Private \\nLimited. Morningstar Investment Adviser India Private \\nLimited is registered with the Securities and Exchange \\nBoard of India \u001b[0m\u001b[32m(\u001b[0m\u001b[32mRegistration number INA000001357 \u001b[0m\u001b[32m)\u001b[0m\u001b[32m and \\nprovides investment advice and research. Morningstar In-\\nvestment Adviser India Private Limited has not been the \\nsubject of any disciplinary action by SEBI or any other leg-\\nal/regulatory body. Morningstar Investment Adviser India \\nPrivate Limited is a wholly owned subsidiary of Morning-\\nstar Investment Management LLC. In India, Morningstar \\nInvestment Adviser India Private Limited has one asso-\\nciate, Morningstar India Private Limited, which provides \\ndata related services, financial data analysis and software \\ndevelopment. The Research Analyst has not served as an \\nofficer, director or employee of the fund company within \\nthe last 12 months, nor has it or its associates engaged in \\nmarket making activity for the fund company.\\n*The Conflicts of Interest disclosure above also applies to \\nrelatives and associates of Manager Research Analysts in \\nIndia # The Conflicts of Interest disclosure above also ap-\\nplies to associates of Manager Research Analysts in In-\\ndia. The terms and conditions on which Morningstar In-\\nvestment Adviser India Private Limited offers Investment \\nResearch to clients, varies from client to client, and are \\ndetailed in the respective client agreement.\\nFor recipients in Japan: The Report is distributed by Ib-\\nbotson Associates Japan, Inc., which is regulated by Fin-\\nancial Services Agency. Neither Ibbotson Associates Ja-\\npan, Inc., nor its representatives, are acting or will be \\ndeemed to be acting as an investment professional to any \\nrecipients of this information.\\nFor recipients in Singapore: For Institutional Investor \\naudiences only. Recipients of this report should contact \\ntheir financial professional in Singapore in relation to this \\nreport. Morningstar, Inc., and its affiliates, relies on cer-\\ntain exemptions \u001b[0m\u001b[32m(\u001b[0m\u001b[32mFinancial Advisers Regulations, Section \\n32B and 32C\u001b[0m\u001b[32m)\u001b[0m\u001b[32m to provide its investment research to recipi-\\nents in Singapore.'\u001b[0m\n", "\u001b[2;32m│ \u001b[0m\u001b[1m]\u001b[0m\n", "\u001b[1m}\u001b[0m\n" ] }, "metadata": {}, "output_type": "display_data" } ], "source": [ "upload_url = 'http://localhost:8003/upload/'upload_url = 'http://localhost:8003/upload/'\n", "\n", "upload_files(data_dir, filelist[1], upload_url, show_content=True)" ] }, { "cell_type": "code", "execution_count": 8, "metadata": {}, "outputs": [ { "name": "stdout", "output_type": "stream", "text": [ "{\"files\":[\"ATT_StockAnalystNote_Annual_20230125.pdf\"]}" ] } ], "source": [ "!curl -X GET http://localhost:8003/list_files/" ] }, { "cell_type": "code", "execution_count": 15, "metadata": {}, "outputs": [ { "name": "stderr", "output_type": "stream", "text": [ "416.89s - pydevd: Sending message related to process being replaced timed-out after 5 seconds\n" ] }, { "name": "stdout", "output_type": "stream", "text": [ "{\"message\":\"Index creation successful\"}" ] } ], "source": [ "# uploading files creates the embeddings in a parquet file\n", "# when one is satisfied with the nb of files uploaded, he can create the index\n", "# the parquet file is then destroyed to allow uploading files incrementally\n", "!curl -X POST http://localhost:8003/create_index/" ] }, { "cell_type": "code", "execution_count": 22, "metadata": {}, "outputs": [ { "data": { "text/html": [ "
{\n",
       "│   'answer': [\n",
       "│   │   'Amazon 2024 forecast is deemed RELEVANT with max score: 0.97',\n",
       "│   │   '1: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.97 - 0 — — — — — — — — 0.0\\nAdjusted EBITDA Growth % -21.9 43.8 -1.8 -66.3 219.8 3.9 4.2 4.6 5.0 30.6\\nEarnings Per Share Growth % — — — — — — — — — 5.7\\nAdjusted Earnings Per Share Growth % — — 91.5 -19.8 18.8 2.8 4.6 -1.3 4.4 5.7\\nValuation as of 25 Jan 2023 Actual Forecast\\n2020 2021 2022 2023 2024 2025 2026 2027\\nPrice/Earnings 13.8 6.2 7.6 7.1 6.9 6.6 6.7 6.4\\nPrice/Sales 2.5 1.7 1.5 1.1 1.1 1.1 1.0 1.0\\nPrice/Book 1.0 1.8 1.4 1.4 1.',\n",
       "│   │   '2: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.92 - 2 7.2 7.4 7.8 8.1 8.5\\nForecast Revisions as of 25 Jan 2023 2023 2024 2025\\nPrior data as of 20 Oct 2022 Current Prior Current Prior Current Prior\\nFair Value Estimate Change (Trading Currency) 25.00 24.50 — — — —\\nRevenue (USD Mil) 121,939 121,142 124,557 122,919 128,196 126,244\\nOperating Income (USD Mil) 25,381 22,668 26,565 24,604 27,935 26,117\\nEBITDA (USD Mil) 42,956 40,418 44,640 42,854 46,510 44,867\\nNet Income (USD Mil) 20,651 19,073 21,231 20,359 22,197 21,530\\nEarnings Per Share (Diluted) (USD) 2.59 2.37 2.63 2.51 2.72 2.',\n",
       "│   │   '3: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.90 - 2 11.5 13.0 14.4 15.4 15.7\\nOperating Performance / Profitability as of 25 Jan 2023 Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nROA % 2.1 4.5 -2.1 4.6 4.5 4.5 4.4 4.5\\nROE % 6.6 18.7 -10.7 19.1 17.4 16.3 15.0 14.4\\nROIC % 4.7 5.8 -1.6 8.1 8.1 8.2 8.3 8.6',\n",
       "│   │   '4: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.82 - Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Financial Summary and Key Statistics \\nActual Forecast\\n2021 2022 2023 2024\\nRevenue (USD Mil) 118,208 120,741 121,939 124,557\\nRevenue Growth % 4.4 2.1 1.0 2.2\\nOperating Income (Mil) 22,116 22,911 25,381 26,565\\nOperating Margin % 18.7 19.0 20.8 21.3\\nAdjusted EBITDA (Mil) 39,849 13,434 42,956 44,640\\nAdjusted EBITDA Margin % 33.7 11.1 35.2 35.',\n",
       "│   │   '5: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.75 - 35 1.11 1.11 1.11 1.11 1.11\\nMargins & Returns as of 25 Jan 2023 Actual Forecast\\n3 Year Avg 2020 2021 2022 2023 2024 2025 2026 2027 5 Year Avg\\nOperating Margin % 19.4 20.4 18.7 19.0 20.8 21.3 21.8 22.2 22.7 21.8\\nEBITDA Margin % — 45.5 38.1 11.1 38.5 38.5 38.5 37.9 38.2 —\\nAdjusted EBITDA Margin % 26.9 35.8 33.7 11.1 35.2 35.8 36.3 36.8 37.4 36.3\\nNet Margin % 7.0 10.0 18.3 -7.2 15.3 15.2 15.3 14.9 15.1 15.2\\nAdjusted Net Margin % 14.5 10.',\n",
       "│   │   '6: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.69 - UTC\\nFinancial Leverage (Reporting Currency) Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nDebt/Capital % 49.3 70.0 58.3 55.3 53.6 51.2 48.8 47.2\\nAssets/Equity 3.3 5.6 4.1 3.8 3.6 3.4 3.2 3.0\\nNet Debt/EBITDA 2.8 3.5 9.6 2.7 2.6 2.4 2.3 2.1\\nTotal Debt/EBITDA 3.9 4.4 10.1 3.1 3.1 2.9 2.8 2.7\\nEBITDA/ Net Interest Expense 5.1 7.6 2.2 7.2 7.4 7.8 8.1 8.',\n",
       "│   │   '7: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.67 - ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nRevenue (USD Mil) 113,238 118,208 120,741 121,939 124,557 128,196 132,267 136,747\\nOperating Income (USD Mil) 23,058 22,116 22,911 25,381 26,565 27,935 29,358 31,098\\nEBITDA (USD Mil) 51,574 44,978 13,434 46,956 47,988 49,327 50,148 52,216\\nAdjusted EBITDA (USD Mil) 40,570 39,849 13,434 42,956 44,640 46,510 48,633 51,073\\nNet Income (USD Mil) 11,284 21,661 -8,727 18,641 18,917 19,558 19,651 20,697\\nAdjusted Net Income (USD Mil) 11,284 21,661 18,311 20,651 21,231 22,',\n",
       "│   │   '8: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.67 - 1 15.2\\nAdjusted Net Margin % 14.5 10.0 18.3 15.2 16.9 17.1 17.3 16.6 16.7 16.9\\nFree Cash Flow To The Firm Margin % 16.5 46.1 3.5 0.0 9.4 10.9 11.7 12.4 12.3 11.3\\nGrowth & Ratios as of 25 Jan 2023 Actual Forecast\\n3 Year CAGR 2020 2021 2022 2023 2024 2025 2026 2027 5 Year CAGR\\nRevenue Growth % — — 4.4 2.1 1.0 2.2 2.9 3.2 3.4 2.5\\nOperating Income Growth % — — -4.1 3.6 10.8 4.7 5.2 5.1 5.9 6.3\\nEBITDA Growth % 0.0 — — — — — — — — 0.',\n",
       "│   │   '9: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.64 - 59 2.37 2.63 2.51 2.72 2.64\\nAdjusted Earnings Per Share  (Diluted) (USD) 2.87 2.67 2.95 2.85 3.08 3.02\\nDividends Per Share (USD) 1.11 1.35 1.11 1.11 1.11 1.11\\nKey Valuation Drivers as of 25 Jan 2023\\nCost of Equity % 9.0\\nPre-Tax Cost of Debt % 6.5\\nWeighted Average Cost of Capital % 7.4\\nLong-Run Tax Rate % 23.5\\nStage II EBI Growth Rate % 3.0\\nStage II Investment Rate % 12.0\\nPerpetuity Year 15\\nAdditional estimates and scenarios available for download at https://pitchbook.com/.',\n",
       "│   │   '10: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.64 - Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®AT&T Inc T QQQQ  25 Jan 2023 22:28, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n20.42 USD\\n25 Jan 202325.00 USD\\n11 Apr 2022 03:30, UTC0.82136.57 USD Bil\\n25 Jan 2023\\nNarrow Stable Medium Poor ;\\n4 Jan 2023 06:00, UTC\\nIncome Statement (USD) Actual Forecast \\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nRevenue (Mil)113,'\n",
       "│   ]\n",
       "}\n",
       "
\n" ], "text/plain": [ "\u001b[1m{\u001b[0m\n", "\u001b[2;32m│ \u001b[0m\u001b[32m'answer'\u001b[0m: \u001b[1m[\u001b[0m\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Amazon 2024 forecast is deemed RELEVANT with max score: 0.97'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'1: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.97 - 0 — — — — — — — — 0.0\\nAdjusted EBITDA Growth % -21.9 43.8 -1.8 -66.3 219.8 3.9 4.2 4.6 5.0 30.6\\nEarnings Per Share Growth % — — — — — — — — — 5.7\\nAdjusted Earnings Per Share Growth % — — 91.5 -19.8 18.8 2.8 4.6 -1.3 4.4 5.7\\nValuation as of 25 Jan 2023 Actual Forecast\\n2020 2021 2022 2023 2024 2025 2026 2027\\nPrice/Earnings 13.8 6.2 7.6 7.1 6.9 6.6 6.7 6.4\\nPrice/Sales 2.5 1.7 1.5 1.1 1.1 1.1 1.0 1.0\\nPrice/Book 1.0 1.8 1.4 1.4 1.'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'2: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.92 - 2 7.2 7.4 7.8 8.1 8.5\\nForecast Revisions as of 25 Jan 2023 2023 2024 2025\\nPrior data as of 20 Oct 2022 Current Prior Current Prior Current Prior\\nFair Value Estimate Change \u001b[0m\u001b[32m(\u001b[0m\u001b[32mTrading Currency\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 25.00 24.50 — — — —\\nRevenue \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 121,939 121,142 124,557 122,919 128,196 126,244\\nOperating Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 25,381 22,668 26,565 24,604 27,935 26,117\\nEBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 42,956 40,418 44,640 42,854 46,510 44,867\\nNet Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 20,651 19,073 21,231 20,359 22,197 21,530\\nEarnings Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mDiluted\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2.59 2.37 2.63 2.51 2.72 2.'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'3: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.90 - 2 11.5 13.0 14.4 15.4 15.7\\nOperating Performance / Profitability as of 25 Jan 2023 Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nROA % 2.1 4.5 -2.1 4.6 4.5 4.5 4.4 4.5\\nROE % 6.6 18.7 -10.7 19.1 17.4 16.3 15.0 14.4\\nROIC % 4.7 5.8 -1.6 8.1 8.1 8.2 8.3 8.6'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'4: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.82 - Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Financial Summary and Key Statistics \\nActual Forecast\\n2021 2022 2023 2024\\nRevenue \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 118,208 120,741 121,939 124,557\\nRevenue Growth % 4.4 2.1 1.0 2.2\\nOperating Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 22,116 22,911 25,381 26,565\\nOperating Margin % 18.7 19.0 20.8 21.3\\nAdjusted EBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 39,849 13,434 42,956 44,640\\nAdjusted EBITDA Margin % 33.7 11.1 35.2 35.'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'5: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.75 - 35 1.11 1.11 1.11 1.11 1.11\\nMargins & Returns as of 25 Jan 2023 Actual Forecast\\n3 Year Avg 2020 2021 2022 2023 2024 2025 2026 2027 5 Year Avg\\nOperating Margin % 19.4 20.4 18.7 19.0 20.8 21.3 21.8 22.2 22.7 21.8\\nEBITDA Margin % — 45.5 38.1 11.1 38.5 38.5 38.5 37.9 38.2 —\\nAdjusted EBITDA Margin % 26.9 35.8 33.7 11.1 35.2 35.8 36.3 36.8 37.4 36.3\\nNet Margin % 7.0 10.0 18.3 -7.2 15.3 15.2 15.3 14.9 15.1 15.2\\nAdjusted Net Margin % 14.5 10.'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'6: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.69 - UTC\\nFinancial Leverage \u001b[0m\u001b[32m(\u001b[0m\u001b[32mReporting Currency\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nDebt/Capital % 49.3 70.0 58.3 55.3 53.6 51.2 48.8 47.2\\nAssets/Equity 3.3 5.6 4.1 3.8 3.6 3.4 3.2 3.0\\nNet Debt/EBITDA 2.8 3.5 9.6 2.7 2.6 2.4 2.3 2.1\\nTotal Debt/EBITDA 3.9 4.4 10.1 3.1 3.1 2.9 2.8 2.7\\nEBITDA/ Net Interest Expense 5.1 7.6 2.2 7.2 7.4 7.8 8.1 8.'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'7: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.67 - ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nRevenue \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 113,238 118,208 120,741 121,939 124,557 128,196 132,267 136,747\\nOperating Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 23,058 22,116 22,911 25,381 26,565 27,935 29,358 31,098\\nEBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 51,574 44,978 13,434 46,956 47,988 49,327 50,148 52,216\\nAdjusted EBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 40,570 39,849 13,434 42,956 44,640 46,510 48,633 51,073\\nNet Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 11,284 21,661 -8,727 18,641 18,917 19,558 19,651 20,697\\nAdjusted Net Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 11,284 21,661 18,311 20,651 21,231 22,'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'8: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.67 - 1 15.2\\nAdjusted Net Margin % 14.5 10.0 18.3 15.2 16.9 17.1 17.3 16.6 16.7 16.9\\nFree Cash Flow To The Firm Margin % 16.5 46.1 3.5 0.0 9.4 10.9 11.7 12.4 12.3 11.3\\nGrowth & Ratios as of 25 Jan 2023 Actual Forecast\\n3 Year CAGR 2020 2021 2022 2023 2024 2025 2026 2027 5 Year CAGR\\nRevenue Growth % — — 4.4 2.1 1.0 2.2 2.9 3.2 3.4 2.5\\nOperating Income Growth % — — -4.1 3.6 10.8 4.7 5.2 5.1 5.9 6.3\\nEBITDA Growth % 0.0 — — — — — — — — 0.'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'9: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.64 - 59 2.37 2.63 2.51 2.72 2.64\\nAdjusted Earnings Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mDiluted\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2.87 2.67 2.95 2.85 3.08 3.02\\nDividends Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 1.11 1.35 1.11 1.11 1.11 1.11\\nKey Valuation Drivers as of 25 Jan 2023\\nCost of Equity % 9.0\\nPre-Tax Cost of Debt % 6.5\\nWeighted Average Cost of Capital % 7.4\\nLong-Run Tax Rate % 23.5\\nStage II EBI Growth Rate % 3.0\\nStage II Investment Rate % 12.0\\nPerpetuity Year 15\\nAdditional estimates and scenarios available for download at https://pitchbook.com/.'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'10: from ATT_StockAnalystNote_Annual_20230125.pdf - score:0.64 - Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®AT&T Inc T QQQQ 25 Jan 2023 22:28, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n20.42 USD\\n25 Jan 202325.00 USD\\n11 Apr 2022 03:30, UTC0.82136.57 USD Bil\\n25 Jan 2023\\nNarrow Stable Medium Poor ;\\n4 Jan 2023 06:00, UTC\\nIncome Statement \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Actual Forecast \\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nRevenue \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m113,'\u001b[0m\n", "\u001b[2;32m│ \u001b[0m\u001b[1m]\u001b[0m\n", "\u001b[1m}\u001b[0m\n" ] }, "metadata": {}, "output_type": "display_data" } ], "source": [ "response = !curl -X POST http://localhost:8003/ask/ -H \"Content-Type: application/json\" -d '{\"question\": \"Amazon 2024 forecast\"}' \n", "pprint(json.loads(response[-1]))" ] }, { "cell_type": "code", "execution_count": null, "metadata": {}, "outputs": [], "source": [ "response = !curl -X POST \"http://localhost:8003/ragit/\" -H \"Content-Type: application/json\" -d '{\"question\": \"Amazon 2024 forecast?\"}'" ] }, { "cell_type": "code", "execution_count": 26, "metadata": {}, "outputs": [ { "data": { "text/html": [ "
Based on the financial reports analyzed, the forecast for Amazon in 2024 is not provided in the context. The \n",
       "information retrieved from the search results pertains to different companies and their financial forecasts, such \n",
       "as revenue, operating income, EBITDA, net income, and various financial ratios. Therefore, the specific forecast \n",
       "for Amazon in 2024 is not available in the given context.\n",
       "
\n" ], "text/plain": [ "Based on the financial reports analyzed, the forecast for Amazon in \u001b[1;36m2024\u001b[0m is not provided in the context. The \n", "information retrieved from the search results pertains to different companies and their financial forecasts, such \n", "as revenue, operating income, EBITDA, net income, and various financial ratios. Therefore, the specific forecast \n", "for Amazon in \u001b[1;36m2024\u001b[0m is not available in the given context.\n" ] }, "metadata": {}, "output_type": "display_data" } ], "source": [ "print(json.loads(response[-1])['answer'])" ] }, { "cell_type": "markdown", "metadata": {}, "source": [ "We see that despite high similarity scores, the vector search is completely off the mark because Amazon is not in the provided data at all. I don't see how a vector search could overcome this situation. But with one more step, RAG, I could instruct the model to look for relevance, and decide to answer or not." ] }, { "cell_type": "markdown", "metadata": {}, "source": [ "Now, let's add a file with Amazon's financial report." ] }, { "cell_type": "code", "execution_count": null, "metadata": {}, "outputs": [], "source": [ "upload_url = 'http://localhost:8003/upload/'\n", "upload_files(data_dir, filelist[3], upload_url, show_content=True)\n", "!curl -X POST http://localhost:8003/create_index/\n", "response = !curl -X POST \"http://localhost:8003/ask/\" -H \"Content-Type: application/json\" -d '{\"question\": \"Amazon 2024 forecast?\"}'" ] }, { "cell_type": "code", "execution_count": 13, "metadata": {}, "outputs": [], "source": [ "response = !curl -X POST \"http://localhost:8003/ask/\" -H \"Content-Type: application/json\" -d '{\"question\": \"Amazon 2024 forecast?\"}'" ] }, { "cell_type": "markdown", "metadata": {}, "source": [ "We can see that Guardrails 'QA Relevance LLM Eval' doesn't work very well at all since it uses a LLM anyway, I prefer to use my own prompting (with ragit)" ] }, { "cell_type": "code", "execution_count": 14, "metadata": {}, "outputs": [ { "data": { "text/html": [ "
[\n",
       "    'Amazon 2024 forecast? is deemed RELEVANT with max score: 0.83',\n",
       "    '1: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.83 - IRRELEVANT answer -  Pii detected -Amazon’s \n",
       "first-quarter outlook \\nincludes $121 billion to $126 billion in revenue and operating income from breakeven to \n",
       "$4.0 billion, compared \\nwith FactSet consensus estimates of $125.5 billion and $4.0 billion, respectively. \n",
       "Guidance assumes 210 basis \\npoints of pressure from currency impacts. Included in operating profit guidance is \n",
       "$640 million of severance \\ncosts. which renders profitability guidance better than it appears at first glance. We \n",
       "see a path to continuous \\nmargin improvement over time, even as uncertain macro conditions weigh in the near \n",
       "term.\\nBusiness Strategy & Outlook  Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nAmazon dominates its served \n",
       "markets, notably e-commerce and cloud services. It benefits from numerous \\ncompetitive advantages and has emerged \n",
       "as the clear e-commerce leader thanks to its size and scale, which \\nyield an unmatched selection of low-priced \n",
       "goods for consumers.\\n SUMMARY: <coroutine object summarize_it at 0x1f7d7c0b0>',\n",
       "    '2: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.78 - RELEVANT answer -  Pii detected -Still, we \n",
       "\\nsee shares as attractive.\\n \\nFourth-quarter revenue grew 9% year over year as reported, or 12% in constant \n",
       "currency, to $149.2 billion, \\ncompared with guidance of $140 billion to $148 billion. Currency improved during the\n",
       "quarter, which eased \\npressure on revenue growth. Compared with our model, online stores was light, while \n",
       "third-party seller services \\nwas well ahead, and other segments were in line to slightly ahead. From a retail \n",
       "perspective (all year over year, \\nas reported), revenue from online stores declined 2%, physical stores improved \n",
       "6%, third-party seller services \\ngrew 20%, and subscription services increased 13%. On the latter point, we’re \n",
       "impressed that Rings of Power \\nhelped draw in new Prime members.\\n \\nThe two most critical segments, AWS and \n",
       "advertising, grew 20% and 19% over the year-ago period, respectively. \\nManagement sees good customer additions \n",
       "within AWS and notes positive conversations about moving new \\nFinancial Summary and Key Statistics \\nActual \n",
       "Forecast\\n2021 2022 2023 2024\\nRevenue (USD Mil) 469,822 513,983 545,336 607,\\n SUMMARY: <coroutine object \n",
       "summarize_it at 0x1f7c96dc0>',\n",
       "    \"3: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.76 - IRRELEVANT answer -  Pii detected \n",
       "-Pandemic-\\nfueled growth last year in online stores and third-party seller services continued to slow to a 3% \n",
       "decline and 7% \\ngrowth year over year in the quarter, respectively, while physical stores continue to benefit from\n",
       "consumers \\nleaving their homes to shop and grew by 17% year over year. Unit growth was flat, but we view this as a\n",
       "mix \\nissue as shopping habits normalize. Amazon noted no consumer slowdown as macro factors such as inflation and \n",
       "\\nthe Russian invasion loom large. Compared with the year-ago period, subscription services slowed to 11% \\ngrowth,\n",
       "AWS posted strong 37% growth, and advertising decelerated to 23% growth. \\nAmazon Delivers Mixed Quarter, Light \n",
       "Guidance, and Prime Price Hike; FVE Steady at $4,100  Dan \\nRomanoff,Senior Equity Analyst,4 Feb 2022\\nWe are \n",
       "maintaining our fair value estimate for wide-moat Amazon at $4,100 per share, and despite shares rising \\n14% after\n",
       "hours, we still view shares as undervalued. We think the highlight of the quarter was Amazon's plan to \\nraise \n",
       "prices in the U.S.\\n SUMMARY: <coroutine object summarize_it at 0x1f7d7c740>\",\n",
       "    \"4: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.74 - IRRELEVANT answer -  Pii detected -In total, \n",
       "Amazon should grow at a 10% CAGR through 2027. We model GAAP operating margin \\nexpanding from 2% (actual) in 2021 \n",
       "to 6% in 2027 as the company grows into its expanded footprint and \\noptimizes its substantial investment in \n",
       "transportation.\\nEconomic Moat  Dan Romanoff, Senior Equity Analyst, 3 Jun 2022\\nWe assign a wide moat rating to \n",
       "Amazon based on network effects, cost advantages, intangible assets, and \\nswitching costs. Amazon has been \n",
       "disrupting the traditional retail industry for more than two decades while also \\nemerging as the leading \n",
       "infrastructure-as-a-service provider via Amazon Web Services. This disruption has been \\nembraced by consumers and \n",
       "has driven change across the entire industry as traditional retailers have invested \\nheavily in technology in \n",
       "order to keep pace. COVID-19 has accelerated change, and given the company's \\ntechnological prowess, massive \n",
       "scale, and relationship with consumers, we think Amazon has widened its lead, \\nwhich we believe will result in \n",
       "economic returns well in excess of its cost of capital for years to come.\\n SUMMARY: <coroutine object summarize_it\n",
       "at 0x1f7d2fa70>\",\n",
       "    '5: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.74 - IRRELEVANT answer -  Pii detected -We \n",
       "continue to believe long-term \\ngrowth driven by e-commerce proliferation, AWS, and advertising, but the near term \n",
       "is clouded by a variety of \\nmacroeconomic issues, including currency headwinds, high inflation, soaring energy \n",
       "costs, and deceleration in \\nAWS. We can look through these issues but we believe they are likely to persist \n",
       "throughout 2023, which \\ndecreases our confidence over the medium term as well. We are lowering our growth and \n",
       "profitability \\nassumptions, and in turn our fair value estimate drops to $150 per share, from $192 previously. \n",
       "Still, we are not \\nready to throw in the towel on Amazon and we see shares as attractive, but clearly the company \n",
       "has still not \\nfound stable footing on its path out of the pandemic.Third-quarter revenue grew 15% year over year \n",
       "as reported, \\nor 19% in constant currency, to $127.1 billion, compared with guidance of $125 billion to $130 \n",
       "billion. Currency \\ncontinued to worsen throughout the quarter, which crimped revenue growth.\\n SUMMARY: <coroutine\n",
       "object summarize_it at 0x1f7c97840>',\n",
       "    '6: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.74 - IRRELEVANT answer -  Pii detected -Currency \n",
       "\\ncontinued to worsen throughout the quarter, which crimped revenue growth. From a retail perspective, online \n",
       "\\nstores grew 7% year over year as reported, physical stores improved 10%, third-party seller services grew 18%, \n",
       "\\nand subscription services increased 9%. Prime Day was held in the third quarter of 2022, compared with the \n",
       "\\nsecond quarter in 2022, which resulted in an artificial 400 basis points of revenue growth for Amazon this \n",
       "\\nquarter. The two most critical segments, AWS and advertising, grew 27% and 25% over the year-ago period, \n",
       "\\nrespectively. AWS enjoyed strong backlog growth, but was proactively helping customers manage cloud \\ncomputing \n",
       "costs as the economy slows. Compared with our model, online stores, subscription services, and AWS \\ndrove the \n",
       "revenue miss. \\nAmazon Shows Signs of Life With Solid Results and Guidance; FVE $192  Dan Romanoff,Senior Equity \n",
       "\\nAnalyst,29 Jul 2022\\nAmazon reported good second-quarter top-line and bottom-line results which were ahead of \n",
       "FactSet consensus \\nexpectations and provided an encouraging revenue outlook for the third quarter.\\n SUMMARY: \n",
       "<coroutine object summarize_it at 0x1f7d7d2a0>',\n",
       "    '7: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.71 - IRRELEVANT answer -  Pii detected -Overall, \n",
       "we do not see issues with the long-term story as Amazon remains well \\npositioned to prosper from the secular shift\n",
       "toward e-commerce and the public cloud over the next \\ndecade.Fourth-quarter revenue grew 9% (10% in constant \n",
       "currency) year over year to $137.4 billion, compared \\nwith guidance of $130 billion to $140 billion. \n",
       "Pandemic-fueled growth last year in online stores and third-party \\nseller services continued to slow to a 1% \n",
       "decline and 11% growth year over year in the quarter, respectively, \\nwhile physical stores enjoyed the benefit of \n",
       "easing lockdowns and grew by 17% year over year. The company \\ncontinues to suffer from labor issues and increasing\n",
       "shipping costs, although the impact from these items came \\nin as expected for the quarter. Still, operating profit\n",
       "came in better than we anticipated and above the high end \\nof the guidance range.Compared with the year-ago \n",
       "period, subscription services slowed to 15% growth, AWS \\naccelerated again to 40% growth, and advertising \n",
       "decelerated to 32% growth.\\n SUMMARY: <coroutine object summarize_it at 0x1f7d2e5e0>',\n",
       "    '8: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.70 - IRRELEVANT answer -  Pii detected -Meanwhile,\n",
       "the company continues to rapidly add capacity in order \\nto meet customer demand and one day delivery, even as it \n",
       "roughly doubled its footprint during the past two \\nyears. We don’t see issues with the long-term story as Amazon \n",
       "remains well positioned to prosper from the \\nsecular shift toward e-commerce and the public cloud over the next \n",
       "decade, but we do see a modest reset in \\nterms of growth and profitability through the next several \n",
       "quarters.Third-quarter revenue grew 15% (15% in \\nconstant currency) year over year to $110.8 billion, compared \n",
       "with FactSet consensus of $111.6 billion and \\nguidance of $106 billion to $112 billion. Surging growth last year \n",
       "in online stores and third-party seller services \\nslowed to 3% and 19% year over year gains in the third quarter, \n",
       "respectively, while physical stores accelerated to \\n13% growth. This shift succinctly captures the dynamics of the\n",
       "end of COVID-driven lockdowns. On a year over \\nyear basis, subscription services slowed to 24% growth, AWS \n",
       "accelerated to 39% growth, and other decelerated \\nto 50% growth.\\n SUMMARY: <coroutine object summarize_it at \n",
       "0x1f7c970d0>',\n",
       "    '9: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.70 - IRRELEVANT answer -  Pii detected -While AWS \n",
       "remains a \\ntremendous opportunity and performed well once again, the more important takeaway this quarter is that \n",
       "retail-\\nrelated businesses, especially third-party seller services, are coming back and even delivered some upside\n",
       "\\ncompared with our expectations. We are not ready to declare victory for the company just yet, but we are \n",
       "\\nencouraged by results and note that the pandemic-fueled growth surge is now removed from prior-year \n",
       "\\ncomparisons, so growth should optically improve going forward.We are maintaining our $192 fair value estimate \n",
       "\\nfor wide-moat Amazon. Even with shares up as much as 14% after hours, we continue to view shares as \\nattractive,\n",
       "as Amazon remains one of our top picks.Second-quarter revenue grew 7% year over year as reported, \\nor 10% in \n",
       "constant currency, to $121.2 billion, compared with guidance of $116 billion to $121 billion. The\\n SUMMARY: \n",
       "<coroutine object summarize_it at 0x1f7d7d4d0>',\n",
       "    '10: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.69 - IRRELEVANT answer -  Pii detected -Further, \n",
       "the firm may face \\nincreasing regulatory and compliance issues as it expands internationally.\\nuNew investments, \n",
       "notably in fulfillment, delivery, and AWS, should damp free cash flow growth. Also, Amazon’s \\npenetration into \n",
       "some countries might be harder than in the U.S. due to inferior logistic networks.\\nuAmazon may not be as \n",
       "successful in penetrating new retail categories, such as luxury goods, due to consumer \\npreferences and an \n",
       "improved e-commerce experience from larger retailers.\\nFair Value and Profit Drivers  Dan Romanoff, Senior Equity \n",
       "Analyst, 3 Feb 2023\\nOur fair value estimate for Amazon is $137 per share, which implies a 2022 enterprise value to\n",
       "sales multiple of 3\\n SUMMARY: <coroutine object summarize_it at 0x1f7d2fdf0>'\n",
       "]\n",
       "
\n" ], "text/plain": [ "\u001b[1m[\u001b[0m\n", " \u001b[32m'Amazon 2024 forecast? is deemed RELEVANT with max score: 0.83'\u001b[0m,\n", " \u001b[32m'1: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.83 - IRRELEVANT answer - Pii detected -Amazon’s \u001b[0m\n", "\u001b[32mfirst-quarter outlook \\nincludes $121 billion to $126 billion in revenue and operating income from breakeven to \u001b[0m\n", "\u001b[32m$4.0 billion, compared \\nwith FactSet consensus estimates of $125.5 billion and $4.0 billion, respectively. \u001b[0m\n", "\u001b[32mGuidance assumes 210 basis \\npoints of pressure from currency impacts. Included in operating profit guidance is \u001b[0m\n", "\u001b[32m$640 million of severance \\ncosts. which renders profitability guidance better than it appears at first glance. We \u001b[0m\n", "\u001b[32msee a path to continuous \\nmargin improvement over time, even as uncertain macro conditions weigh in the near \u001b[0m\n", "\u001b[32mterm.\\nBusiness Strategy & Outlook Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nAmazon dominates its served \u001b[0m\n", "\u001b[32mmarkets, notably e-commerce and cloud services. It benefits from numerous \\ncompetitive advantages and has emerged \u001b[0m\n", "\u001b[32mas the clear e-commerce leader thanks to its size and scale, which \\nyield an unmatched selection of low-priced \u001b[0m\n", "\u001b[32mgoods for consumers.\\n SUMMARY: \u001b[0m\u001b[32m<\u001b[0m\u001b[32mcoroutine\u001b[0m\u001b[32m object summarize_it at 0x1f7d7c0b0>'\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m'2: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.78 - RELEVANT answer - Pii detected -Still, we \u001b[0m\n", "\u001b[32m\\nsee shares as attractive.\\n \\nFourth-quarter revenue grew 9% year over year as reported, or 12% in constant \u001b[0m\n", "\u001b[32mcurrency, to $149.2 billion, \\ncompared with guidance of $140 billion to $148 billion. Currency improved during the\u001b[0m\n", "\u001b[32mquarter, which eased \\npressure on revenue growth. Compared with our model, online stores was light, while \u001b[0m\n", "\u001b[32mthird-party seller services \\nwas well ahead, and other segments were in line to slightly ahead. From a retail \u001b[0m\n", "\u001b[32mperspective \u001b[0m\u001b[32m(\u001b[0m\u001b[32mall year over year, \\nas reported\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, revenue from online stores declined 2%, physical stores improved \u001b[0m\n", "\u001b[32m6%, third-party seller services \\ngrew 20%, and subscription services increased 13%. On the latter point, we’re \u001b[0m\n", "\u001b[32mimpressed that Rings of Power \\nhelped draw in new Prime members.\\n \\nThe two most critical segments, AWS and \u001b[0m\n", "\u001b[32madvertising, grew 20% and 19% over the year-ago period, respectively. \\nManagement sees good customer additions \u001b[0m\n", "\u001b[32mwithin AWS and notes positive conversations about moving new \\nFinancial Summary and Key Statistics \\nActual \u001b[0m\n", "\u001b[32mForecast\\n2021 2022 2023 2024\\nRevenue \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 469,822 513,983 545,336 607,\\n SUMMARY: '\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m\"3: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.76 - IRRELEVANT answer - Pii detected \u001b[0m\n", "\u001b[32m-Pandemic-\\nfueled growth last year in online stores and third-party seller services continued to slow to a 3% \u001b[0m\n", "\u001b[32mdecline and 7% \\ngrowth year over year in the quarter, respectively, while physical stores continue to benefit from\u001b[0m\n", "\u001b[32mconsumers \\nleaving their homes to shop and grew by 17% year over year. Unit growth was flat, but we view this as a\u001b[0m\n", "\u001b[32mmix \\nissue as shopping habits normalize. Amazon noted no consumer slowdown as macro factors such as inflation and \u001b[0m\n", "\u001b[32m\\nthe Russian invasion loom large. Compared with the year-ago period, subscription services slowed to 11% \\ngrowth,\u001b[0m\n", "\u001b[32mAWS posted strong 37% growth, and advertising decelerated to 23% growth. \\nAmazon Delivers Mixed Quarter, Light \u001b[0m\n", "\u001b[32mGuidance, and Prime Price Hike; FVE Steady at $4,100 Dan \\nRomanoff,Senior Equity Analyst,4 Feb 2022\\nWe are \u001b[0m\n", "\u001b[32mmaintaining our fair value estimate for wide-moat Amazon at $4,100 per share, and despite shares rising \\n14% after\u001b[0m\n", "\u001b[32mhours, we still view shares as undervalued. We think the highlight of the quarter was Amazon's plan to \\nraise \u001b[0m\n", "\u001b[32mprices in the U.S.\\n SUMMARY: \"\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m\"4: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.74 - IRRELEVANT answer - Pii detected -In total, \u001b[0m\n", "\u001b[32mAmazon should grow at a 10% CAGR through 2027. We model GAAP operating margin \\nexpanding from 2% \u001b[0m\u001b[32m(\u001b[0m\u001b[32mactual\u001b[0m\u001b[32m)\u001b[0m\u001b[32m in 2021 \u001b[0m\n", "\u001b[32mto 6% in 2027 as the company grows into its expanded footprint and \\noptimizes its substantial investment in \u001b[0m\n", "\u001b[32mtransportation.\\nEconomic Moat Dan Romanoff, Senior Equity Analyst, 3 Jun 2022\\nWe assign a wide moat rating to \u001b[0m\n", "\u001b[32mAmazon based on network effects, cost advantages, intangible assets, and \\nswitching costs. Amazon has been \u001b[0m\n", "\u001b[32mdisrupting the traditional retail industry for more than two decades while also \\nemerging as the leading \u001b[0m\n", "\u001b[32minfrastructure-as-a-service provider via Amazon Web Services. This disruption has been \\nembraced by consumers and \u001b[0m\n", "\u001b[32mhas driven change across the entire industry as traditional retailers have invested \\nheavily in technology in \u001b[0m\n", "\u001b[32morder to keep pace. COVID-19 has accelerated change, and given the company's \\ntechnological prowess, massive \u001b[0m\n", "\u001b[32mscale, and relationship with consumers, we think Amazon has widened its lead, \\nwhich we believe will result in \u001b[0m\n", "\u001b[32meconomic returns well in excess of its cost of capital for years to come.\\n SUMMARY: \"\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m'5: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.74 - IRRELEVANT answer - Pii detected -We \u001b[0m\n", "\u001b[32mcontinue to believe long-term \\ngrowth driven by e-commerce proliferation, AWS, and advertising, but the near term \u001b[0m\n", "\u001b[32mis clouded by a variety of \\nmacroeconomic issues, including currency headwinds, high inflation, soaring energy \u001b[0m\n", "\u001b[32mcosts, and deceleration in \\nAWS. We can look through these issues but we believe they are likely to persist \u001b[0m\n", "\u001b[32mthroughout 2023, which \\ndecreases our confidence over the medium term as well. We are lowering our growth and \u001b[0m\n", "\u001b[32mprofitability \\nassumptions, and in turn our fair value estimate drops to $150 per share, from $192 previously. \u001b[0m\n", "\u001b[32mStill, we are not \\nready to throw in the towel on Amazon and we see shares as attractive, but clearly the company \u001b[0m\n", "\u001b[32mhas still not \\nfound stable footing on its path out of the pandemic.Third-quarter revenue grew 15% year over year \u001b[0m\n", "\u001b[32mas reported, \\nor 19% in constant currency, to $127.1 billion, compared with guidance of $125 billion to $130 \u001b[0m\n", "\u001b[32mbillion. Currency \\ncontinued to worsen throughout the quarter, which crimped revenue growth.\\n SUMMARY: '\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m'6: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.74 - IRRELEVANT answer - Pii detected -Currency \u001b[0m\n", "\u001b[32m\\ncontinued to worsen throughout the quarter, which crimped revenue growth. From a retail perspective, online \u001b[0m\n", "\u001b[32m\\nstores grew 7% year over year as reported, physical stores improved 10%, third-party seller services grew 18%, \u001b[0m\n", "\u001b[32m\\nand subscription services increased 9%. Prime Day was held in the third quarter of 2022, compared with the \u001b[0m\n", "\u001b[32m\\nsecond quarter in 2022, which resulted in an artificial 400 basis points of revenue growth for Amazon this \u001b[0m\n", "\u001b[32m\\nquarter. The two most critical segments, AWS and advertising, grew 27% and 25% over the year-ago period, \u001b[0m\n", "\u001b[32m\\nrespectively. AWS enjoyed strong backlog growth, but was proactively helping customers manage cloud \\ncomputing \u001b[0m\n", "\u001b[32mcosts as the economy slows. Compared with our model, online stores, subscription services, and AWS \\ndrove the \u001b[0m\n", "\u001b[32mrevenue miss. \\nAmazon Shows Signs of Life With Solid Results and Guidance; FVE $192 Dan Romanoff,Senior Equity \u001b[0m\n", "\u001b[32m\\nAnalyst,29 Jul 2022\\nAmazon reported good second-quarter top-line and bottom-line results which were ahead of \u001b[0m\n", "\u001b[32mFactSet consensus \\nexpectations and provided an encouraging revenue outlook for the third quarter.\\n SUMMARY: \u001b[0m\n", "\u001b[32m'\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m'7: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.71 - IRRELEVANT answer - Pii detected -Overall, \u001b[0m\n", "\u001b[32mwe do not see issues with the long-term story as Amazon remains well \\npositioned to prosper from the secular shift\u001b[0m\n", "\u001b[32mtoward e-commerce and the public cloud over the next \\ndecade.Fourth-quarter revenue grew 9% \u001b[0m\u001b[32m(\u001b[0m\u001b[32m10% in constant \u001b[0m\n", "\u001b[32mcurrency\u001b[0m\u001b[32m)\u001b[0m\u001b[32m year over year to $137.4 billion, compared \\nwith guidance of $130 billion to $140 billion. \u001b[0m\n", "\u001b[32mPandemic-fueled growth last year in online stores and third-party \\nseller services continued to slow to a 1% \u001b[0m\n", "\u001b[32mdecline and 11% growth year over year in the quarter, respectively, \\nwhile physical stores enjoyed the benefit of \u001b[0m\n", "\u001b[32measing lockdowns and grew by 17% year over year. The company \\ncontinues to suffer from labor issues and increasing\u001b[0m\n", "\u001b[32mshipping costs, although the impact from these items came \\nin as expected for the quarter. Still, operating profit\u001b[0m\n", "\u001b[32mcame in better than we anticipated and above the high end \\nof the guidance range.Compared with the year-ago \u001b[0m\n", "\u001b[32mperiod, subscription services slowed to 15% growth, AWS \\naccelerated again to 40% growth, and advertising \u001b[0m\n", "\u001b[32mdecelerated to 32% growth.\\n SUMMARY: '\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m'8: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.70 - IRRELEVANT answer - Pii detected -Meanwhile,\u001b[0m\n", "\u001b[32mthe company continues to rapidly add capacity in order \\nto meet customer demand and one day delivery, even as it \u001b[0m\n", "\u001b[32mroughly doubled its footprint during the past two \\nyears. We don’t see issues with the long-term story as Amazon \u001b[0m\n", "\u001b[32mremains well positioned to prosper from the \\nsecular shift toward e-commerce and the public cloud over the next \u001b[0m\n", "\u001b[32mdecade, but we do see a modest reset in \\nterms of growth and profitability through the next several \u001b[0m\n", "\u001b[32mquarters.Third-quarter revenue grew 15% \u001b[0m\u001b[32m(\u001b[0m\u001b[32m15% in \\nconstant currency\u001b[0m\u001b[32m)\u001b[0m\u001b[32m year over year to $110.8 billion, compared \u001b[0m\n", "\u001b[32mwith FactSet consensus of $111.6 billion and \\nguidance of $106 billion to $112 billion. Surging growth last year \u001b[0m\n", "\u001b[32min online stores and third-party seller services \\nslowed to 3% and 19% year over year gains in the third quarter, \u001b[0m\n", "\u001b[32mrespectively, while physical stores accelerated to \\n13% growth. This shift succinctly captures the dynamics of the\u001b[0m\n", "\u001b[32mend of COVID-driven lockdowns. On a year over \\nyear basis, subscription services slowed to 24% growth, AWS \u001b[0m\n", "\u001b[32maccelerated to 39% growth, and other decelerated \\nto 50% growth.\\n SUMMARY: '\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m'9: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.70 - IRRELEVANT answer - Pii detected -While AWS \u001b[0m\n", "\u001b[32mremains a \\ntremendous opportunity and performed well once again, the more important takeaway this quarter is that \u001b[0m\n", "\u001b[32mretail-\\nrelated businesses, especially third-party seller services, are coming back and even delivered some upside\u001b[0m\n", "\u001b[32m\\ncompared with our expectations. We are not ready to declare victory for the company just yet, but we are \u001b[0m\n", "\u001b[32m\\nencouraged by results and note that the pandemic-fueled growth surge is now removed from prior-year \u001b[0m\n", "\u001b[32m\\ncomparisons, so growth should optically improve going forward.We are maintaining our $192 fair value estimate \u001b[0m\n", "\u001b[32m\\nfor wide-moat Amazon. Even with shares up as much as 14% after hours, we continue to view shares as \\nattractive,\u001b[0m\n", "\u001b[32mas Amazon remains one of our top picks.Second-quarter revenue grew 7% year over year as reported, \\nor 10% in \u001b[0m\n", "\u001b[32mconstant currency, to $121.2 billion, compared with guidance of $116 billion to $121 billion. The\\n SUMMARY: \u001b[0m\n", "\u001b[32m'\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m'10: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.69 - IRRELEVANT answer - Pii detected -Further, \u001b[0m\n", "\u001b[32mthe firm may face \\nincreasing regulatory and compliance issues as it expands internationally.\\nuNew investments, \u001b[0m\n", "\u001b[32mnotably in fulfillment, delivery, and AWS, should damp free cash flow growth. Also, Amazon’s \\npenetration into \u001b[0m\n", "\u001b[32msome countries might be harder than in the U.S. due to inferior logistic networks.\\nuAmazon may not be as \u001b[0m\n", "\u001b[32msuccessful in penetrating new retail categories, such as luxury goods, due to consumer \\npreferences and an \u001b[0m\n", "\u001b[32mimproved e-commerce experience from larger retailers.\\nFair Value and Profit Drivers Dan Romanoff, Senior Equity \u001b[0m\n", "\u001b[32mAnalyst, 3 Feb 2023\\nOur fair value estimate for Amazon is $137 per share, which implies a 2022 enterprise value to\u001b[0m\n", "\u001b[32msales multiple of 3\\n SUMMARY: \u001b[0m\u001b[32m'\u001b[0m\n", "\u001b[1m]\u001b[0m\n" ] }, "metadata": {}, "output_type": "display_data" } ], "source": [ "print(json.loads(response[-1])['answer'])" ] }, { "cell_type": "code", "execution_count": 20, "metadata": {}, "outputs": [ { "data": { "text/plain": [ "'AMZN_MS_CompanyReport_Annual_20230203.pdf'" ] }, "execution_count": 20, "metadata": {}, "output_type": "execute_result" } ], "source": [ "filelist[3]" ] }, { "cell_type": "code", "execution_count": 12, "metadata": {}, "outputs": [ { "data": { "text/html": [ "
'Uploaded AMZN_MS_CompanyReport_Annual_20230203.pdf with response 200'\n",
       "
\n" ], "text/plain": [ "\u001b[32m'Uploaded AMZN_MS_CompanyReport_Annual_20230203.pdf with response 200'\u001b[0m\n" ] }, "metadata": {}, "output_type": "display_data" }, { "data": { "text/html": [ "
{\n",
       "│   'message': 'Successfully uploaded AMZN_MS_CompanyReport_Annual_20230203.pdf',\n",
       "│   'AMZN_MS_CompanyReport_Annual_20230203.pdf': [\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 1 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nDan Romanoff\\nSenior Equity Analyst\\nMorningstar\\n+1 312 244 7816\\ndan.romanoff@morningstar.com\\nContents\\nAnalyst Note  (3 Feb 2023)\\nBusiness Description\\nBusiness Strategy & Outlook  (3 Feb 2023)\\nBulls Say / Bears Say  (3 Feb 2023)\\nFair Value and Profit Drivers  (3 Feb 2023)\\nEconomic Moat  (3 Jun 2022)\\nMoat Trend  (3 Jun 2022)\\nRisk and Uncertainty  (3 Jun 2022)\\nFinancial Strength  (3 Feb 2023)\\nCapital Allocation  (3 Feb 2023)\\nFinancials\\nRecent Analyst Notes\\nResearch Methodology for Valuing \\nCompanies\\nImportant Disclosure\\nThe conduct of Morningstar’s analysts is governed by Code of \\nEthics/Code of Conduct Policy, Personal Security Trading Policy \\n(or an equivalent of), and Investment Research Policy. For \\ninformation regarding conflicts of interest, please visit: http://\\nglobal.morningstar.com/equitydisclosures.\\nThe primary analyst covering this company does not own its \\nstock.\\nReporting Currency: USD | Trading Currency: USD\\nCurrency amounts expressed with \"$\" are in U.S. dollars \\n(USD) unless otherwise denoted.\\n1The ESG Risk Rating Assessment is a representation of \\nSustainalytics’ ESG Risk Rating.Solid Results for Amazon With Continued AWS Deceleration in \\nJanuary; Outlook Light; FVE Cut to $137\\nAnalyst Note  Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nWide-moat Amazon reported solid fourth-quarter results, but provided a first-quarter outlook that was shy of our \\nexpectations. E-commerce was generally solid while AWS continues to decelerate, including through January. \\nWe see real progress being made on the operational side, which was masked by impairment charges. We still \\nforesee healthy long-term growth driven by e-commerce proliferation, Amazon Web Services, or AWS, and \\nadvertising, but the near term remains a work-in-progress with macro issues weighing on 2023, albeit with \\nimprovement in 2024. We cut our estimates on both the top and bottom lines for 2023, while leaving the rest of \\nour estimates largely unchanged. In turn, we cut our fair value estimate to $137 per share from $150. Still, we \\nsee shares as attractive.\\n \\nFourth-quarter revenue grew 9% year over year as reported, or 12% in constant currency, to $149.2 billion, \\ncompared with guidance of $140 billion to $148 billion. Currency improved during the quarter, which eased \\npressure on revenue growth. Compared with our model, online stores was light, while third-party seller services \\nwas well ahead, and other segments were in line to slightly ahead. From a retail perspective (all year over year, \\nas reported), revenue from online stores declined 2%, physical stores improved 6%, third-party seller services \\ngrew 20%, and subscription services increased 13%. On the latter point, we’re impressed that Rings of Power \\nhelped draw in new Prime members.\\n \\nThe two most critical segments, AWS and advertising, grew 20% and 19% over the year-ago period, respectively. \\nManagement sees good customer additions within AWS and notes positive conversations about moving new \\nFinancial Summary and Key Statistics \\nActual Forecast\\n2021 2022 2023 2024\\nRevenue (USD Mil) 469,822 513,983 545,336 607,352\\nRevenue Growth % 21.7 9.4 6.1 11.4\\nOperating Income (Mil) 24,879 12,248 11,747 22,593\\nOperating Margin % 5.3 2.4 2.2 3.7\\nAdjusted EBITDA (Mil) 71,932 73,330 82,561 98,872\\nAdjusted EBITDA Margin % 15.3 14.3 15.1 16.3\\nEarnings Per Share (Diluted) (USD) 3.24 -0.27 0.94 1.75\\nAdjusted Earnings Per Share (Diluted) (USD) 3.24 -0.27 0.94 1.75\\nAdjusted EPS Growth % 55.0 -108.2 -454.0 85.7\\nPrice/Earnings 51.5 -311.1 120.1 64.5\\nPrice/Book 12.4 5.9 7.5 6.8\\nEV/EBITDA 23.0 23.6 14.8 12.4\\nFree Cash Flow Yield % -0.9 -1.0 2.2 3.6\\nSource: Morningstar Valuation Model. Data as of 02 Feb 2023.',\n",
       "│   │   \"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 2 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nworkloads to the cloud. However, enterprise customers continue to optimize cloud spending, consistent with \\ncomments from other cloud providers. Management believes this will continue for at least a couple quarters, \\nnoting that AWS growth was in the midteens year over year for the month of January.\\nDespite further deceleration this quarter, AWS remains critical to Amazon's overall revenue growth in the near \\nterm and long-term. Like Microsoft noted earlier this week, Amazon is in discussions with customers to help \\nthem optimize spending and consumption on public cloud services. Management noted that new customers are \\nbeing added and new workloads are planned, but nonetheless expects depressed revenue expansion to persist \\nat least through midyear. Microsoft also expects a lag between customer optimization efforts and new workload \\nmigration.\\n \\nWe think we are in the early innings of cloud migration, while management disclosed that it believes 90% to 95% \\nof enterprise workloads remain on-premises. Strong backlog growth gives us comfort that the runway for AWS \\nremains long. We also think cloud migration is an obvious cost-cutting move for enterprise customers, which we \\nthink puts a floor under growth even if the economy formally descends into a recession. We continue to believe \\nthat the migration to the public cloud is an enormous opportunity and remains in the early stages of evolution, \\nwith AWS being the clear leader.\\n \\nOperating profit came in at $2.7 billion, compared with guidance of $0.0 billion to $4.0 billion, producing an \\noperating margin of 1.8%, compared with 2.5% a year ago. Impairment charges stemming from self-insurance \\nliabilities, impairments of property and equipment and operating leases, and estimated severance costs totaled \\n$2.7 billion. In other words, normalized operating profit was $5.4 billion, which was nicely ahead of the top end \\nof guidance. Amazon continues to make progress on its excess expenses, particularly in improvements to the \\nproductivity of the fulfillment network and transportation. Management plans to continue to optimize operations \\nthroughout 2023.\\n \\nWhile guidance was slightly shy of our model, we are not surprised given the macro environment. However, we \\nthink the continued deceleration in January AWS will be unnerving to investors. Amazon’s first-quarter outlook \\nincludes $121 billion to $126 billion in revenue and operating income from breakeven to $4.0 billion, compared \\nwith FactSet consensus estimates of $125.5 billion and $4.0 billion, respectively. Guidance assumes 210 basis \\npoints of pressure from currency impacts. Included in operating profit guidance is $640 million of severance \\ncosts. which renders profitability guidance better than it appears at first glance. We see a path to continuous \\nmargin improvement over time, even as uncertain macro conditions weigh in the near term.\\nBusiness Strategy & Outlook  Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nAmazon dominates its served markets, notably e-commerce and cloud services. It benefits from numerous \\ncompetitive advantages and has emerged as the clear e-commerce leader thanks to its size and scale, which \\nyield an unmatched selection of low-priced goods for consumers. The secular drift toward e-commerce continues Sector Industry\\nt Consumer Cyclical Internet Retail\\nBusiness Description\\nAmazon is a leading online retailer and one \\nof the highest-grossing e-commerce \\naggregators, with $386 billion in net sales \\nand approximately $578 billion in estimated \\nphysical/digital online gross merchandise \\nvolume in 2021. Retail-related revenue \\nrepresents approximately 80% of the total, \\nfollowed by Amazon Web Services' cloud \\ncomputing, storage, database, and other \\nofferings (10%-15%), advertising services \\n(5%), and other. International segments \\nconstitute 25%-30% of Amazon's non-AWS \\nsales, led by Germany, the United Kingdom, \\nand Japan.\",\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 3 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nunabated with the company continuing to grind out market share gains despite its size. Prime ties Amazon’s e-\\ncommerce efforts together and provides a steady stream of high-margin recurring revenue from customers who \\npurchase more frequently from Amazon’s properties. In return, consumers get one-day shipping on millions of \\nitems, exclusive video content, and other services; this results in a powerful virtuous circle where customers and \\nsellers attract one another. Kindle and other devices further bolster the ecosystem by helping attract new \\ncustomers while making the value proposition irresistible in retaining existing customers. Through Amazon Web \\nServices, Amazon is also a clear leader in public cloud services.\\nAdditionally, the firm’s advertising business is already large and continues to scale, thus offering an attractive \\noption for marketers looking to access a vast audience with a variety of proprietary data points about those very \\nconsumers. AWS and advertising growth should continue to outpace e-commerce growth. We expect these areas \\nto be the main growth drivers over the next five years. This is critical, as each of these segments drives higher \\nmargins than the corporate average, which in turn should allow both operating profit and EPS to outgrow \\nrevenue as margins continue to expand.\\nFrom a retail perspective, we expect continued innovation to help drive further share gains in a post-lockdown \\nworld. We also look for continued penetration into categories such as groceries and luxury goods that have not \\npreviously translated into the same level of success as other retail categories. We also see technology \\nadvancements in AWS and a bigger push to service enterprise customers as helping to maintain the company’s \\nlead there. Overall, we see strong revenue and free cash flow growth for years to come.\\nBulls Say  Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nuAmazon is the clear leader in e-commerce and enjoys unrivaled scale to continue to invest in growth \\nopportunities and drive the very best customer experience. \\n \\nuHigh-margin advertising and AWS are growing faster than the corporate average, which should continue to \\nboost profitability over the next several years.\\nuAmazon Prime memberships help attract and retain customers who spend more with Amazon; this reinforces a \\npowerful network effect while bringing in recurring and high-margin revenue.\\nBears Say  Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nuRegulatory concerns are rising for large technology firms, including Amazon. Further, the firm may face \\nincreasing regulatory and compliance issues as it expands internationally.\\nuNew investments, notably in fulfillment, delivery, and AWS, should damp free cash flow growth. Also, Amazon’s \\npenetration into some countries might be harder than in the U.S. due to inferior logistic networks.\\nuAmazon may not be as successful in penetrating new retail categories, such as luxury goods, due to consumer \\npreferences and an improved e-commerce experience from larger retailers.\\nFair Value and Profit Drivers  Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nOur fair value estimate for Amazon is $137 per share, which implies a 2022 enterprise value to sales multiple of 3 ',\n",
       "│   │   \"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 4 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\ntimes and a 1.7% free cash flow yield. We think multiples are a little less meaningful for Amazon given the \\nongoing heavy investment and rapid scaling that depresses financial performance. However, we expect the \\ncompany to significantly grow its free cash flow as it matures.\\nOver the long term, we expect e-commerce to continue to take share from brick-and-mortar retailers. We further \\nexpect Amazon to gain share online. We believe that over the medium term, COVID-19 pulled forward some \\ndemand by changing consumer behavior and better penetrating some retail categories, such as groceries, \\npharmacy, and luxury goods, that previously had not gained as much traction online. We think Prime \\nsubscriptions and the accompanying benefits, combined with selection, price, and convenience continue to drive \\nthe retail story. We also see international as being a longer-term opportunity within retail. We model total retail-\\nrelated revenue growing at a 7% CAGR over the next five years.\\nWe believe the critical growth drivers over the medium term will be AWS and advertising. Since these segments \\nearn materially higher margins than the rest of the business, we also expect them to drive margins higher over \\ntime. Over the next five years, we project AWS revenue growing at a 18% CAGR and advertising revenue growing \\nat a 17% CAGR. In total, Amazon should grow at a 10% CAGR through 2027. We model GAAP operating margin \\nexpanding from 2% (actual) in 2021 to 6% in 2027 as the company grows into its expanded footprint and \\noptimizes its substantial investment in transportation.\\nEconomic Moat  Dan Romanoff, Senior Equity Analyst, 3 Jun 2022\\nWe assign a wide moat rating to Amazon based on network effects, cost advantages, intangible assets, and \\nswitching costs. Amazon has been disrupting the traditional retail industry for more than two decades while also \\nemerging as the leading infrastructure-as-a-service provider via Amazon Web Services. This disruption has been \\nembraced by consumers and has driven change across the entire industry as traditional retailers have invested \\nheavily in technology in order to keep pace. COVID-19 has accelerated change, and given the company's \\ntechnological prowess, massive scale, and relationship with consumers, we think Amazon has widened its lead, \\nwhich we believe will result in economic returns well in excess of its cost of capital for years to come.\\nWe believe Amazon’s retail business has a wide moat stemming from network effects associated with its \\nmarketplace, where more buyers and sellers continually attract more buyers and sellers; a cost advantage tied to \\npurchasing power, logistics, vertical integration (proprietary brands, owned delivery, and so on), and a negative \\ncash conversion cycle; and intangible assets associated with technology and branding. We also believe AWS is a \\nwide-moat business, thanks to high customer switching costs; a cost advantage associated with economies of \\nscale where few competitors can keep up with Amazon’s investment pace; intangible assets arising from \\nsemiconductor and facility development; and a network effect associated with a marketplace for software \\ncreated to make AWS work better. We also would assign Amazon’s burgeoning advertising business a narrow \\nmoat based on intangible assets from its proprietary data on hundreds of millions of users and a network effect \\nagain focusing on buyers and sellers meeting in the largest available venues. We believe that the wide moat for \\nAmazon’s entire business is greater than the sum of its parts; we prefer to analyze Amazon’s moat on the whole, \",\n",
       "│   │   \"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 5 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nas the company's segments reinforce one another and returns result in an unrivaled consumer experience.\\nTogether, we believe Amazon’s retail business enjoys a wide moat supported by cost advantages, intangible \\nassets, and network effects. We assess the moat around Amazon’s retail business based on a combination of \\nonline stores, third-party seller services, subscription services, and physical stores, as we find it challenging to \\nthink about durable competitive advantages for each of these segments in isolation. Given its massive scale, \\nAmazon has created cost advantages including buying power, economies of scope, route density, and research \\nand development. From a total gross merchandise value perspective, with approximately $580 billion in 2021, it \\nfinally surpassed Walmart. Similarly, Amazon is the largest online retailer and is an order of magnitude larger \\nthan Walmart and 4 times larger than Shopify, assuming we classify Shopify as a demand aggregator. \\nAdditionally, the company has become more vertically integrated over time and most recently has built out its \\nown transportation network. Size dictates certain scales of efficiency, but we think Amazon is the definition of \\noperational excellence. \\nThese advantages are related and reinforce one another in a virtuous circle. Low prices and an unmatched \\nselection have come to define the company in consumer’s minds, giving rise to intangible assets from branding \\nand technology (search capabilities and recommendation engine). Product searches are more likely to begin on \\nAmazon at this point than they are Google. Amazon has become the only demand aggregator at scale in the U.S. \\nbecause of its wide selection, intelligent recommendation algorithms, low prices, and convenience, which \\ncombine into a powerful business model.\\nWe also believe Amazon’s retail business benefits from network effects. The sheer number of consumers \\nshopping on Amazon makes it attractive to third party sellers, while the marketplace expands the selection \\navailable to shoppers and makes Amazon a more attractive online destination for consumers. In fact, 50%-55% of \\ntotal goods sold by Amazon are through its third-party marketplace. At the heart of third-party seller services is \\nthe commission Amazon collects from the independent seller. However, these services also include Fulfillment by \\nAmazon, distribution facility storage, shipping, payment processing, and other related items.\\nTo improve the consumer experience and more tightly tie users to Amazon, the company has moved increasingly \\ninto content. Consumers can now have Prime Video, Music Unlimited, Kindle Unlimited, Prime Gaming, and other \\nsimilar subscription services. The company even produces original content for Prime Video to help reinforce the \\nnotion that consumers can get anything they need from Amazon. We view the Kindle, Echo, Fire, and other \\nAmazon original devices as interesting on their own merits, but think the underlying point is to once again draw \\nin more consumers to Amazon’s retail properties and engage those customers that are already within the \\necosystem. Amazon’s hardware helps to enable Amazon’s services. The Kindle, for example, dovetails perfectly \\nwith Kindle Unlimited, which for a $9.99 monthly subscription, allows users to read from a selection of more than \\none million book titles. The company even offers a direct-to-Kindle book publishing service. \\nThe common thread that weaves throughout Amazon’s retail business is Amazon Prime, which for $139 per year \\nallows users unlimited free shipping on millions of stock-keeping units, including same-day or one-day shipping \",\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 6 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\non many items, access to Prime Video and Prime Music, and a variety of other benefits. We view Prime \\nsubscriptions and the differentiated user experience they offer as critical to attracting and retaining customers. \\nPrime memberships generate high cash flow that can be reinvested in further improving the user experience on \\nthe technology, content, and delivery fronts. Prime customers are very sticky and tend to purchase from Amazon \\nmore frequently and across more retail categories. We think content combined with Prime subscriptions actually \\nbuild a switching cost that consumers would need to overcome, although these switching costs might not last for \\ndecades in order to warrant it as a moat source.\\nAdvertising is tangentially related to Amazon’s retail operations in that it takes place on Amazon’s own online \\nproperties. Advertising is growing rapidly and is likely the segment with the highest operating margins in \\nAmazon’s portfolio, likely in excess of 30%, which is would be directionally comparable to margins earned by \\nFacebook when it was a similarly sized business (other was $21 billion in revenue in 2020, compared with $18 \\nbillion in revenue for Facebook in 2015). We believe advertising dollars flow to where the eyeballs are and where \\ninformation is known about the online user, which fits in very well with Amazon’s strengths. We therefore expect \\nadvertising to grow rapidly over the next several years and continue to boost the company’s overall profitability. \\nLooking at advertising in isolation, we would likely give it a narrow moat rating based on intangible assets arising \\nfrom proprietary technology (data), and network effects, although assigning a moat rating here is difficult \\nbecause Amazon doesn’t disclose much about this business. That said, we can see Amazon’s advertising \\nbecoming a wide-moat business as it becomes more established and more details are disclosed. We think \\nAmazon’s advertising business is attractive to advertisers because there is proprietary information about the \\nconsumers and real-time data about when they are searching for a particular product, and Amazon already \\nenjoys substantial traffic. We expect this business to continue to grow rapidly and offer an attractive alternative \\nto platforms from social network and internet search providers.\\nAmazon Web Services enjoys a wide moat supported by switching costs, network effects, intangible assets, and \\ncost advantages. Amazon was a pioneer in public cloud infrastructure as a service and platform as a service and \\nretains a substantial lead over its closest rival, Microsoft. AWS has driven profitability for the entire company; \\nalthough it represents 10%-15% of revenue, it generates 60%-65% of total operating profit dollars for Amazon. \\nWe also expect AWS to remain a key growth driver for the company over the next decade.\\nAWS differs from the company’s e-commerce operations in that it is enterprise-facing rather than consumer-\\nfacing. Enterprise customers rely on AWS for core IT infrastructure, which represents significant switching costs \\nin terms of the time and expense of integrating applications with core software elements, such as the database, \\nand dedicates a user to a specific set of software development tools. Ultimately, the operational risks to changing \\nmission-critical technology infrastructure is high, which is why core elements such as ERP systems and cloud \\nproviders are rarely changed.\\nFurther, we believe it is cheaper initially for companies to move workloads to the cloud, as there are fewer up-\\nfront costs and a lower bar to clear for maintenance and administration. Additionally, Amazon has devoted ',\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 7 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nsignificant R&D resources to adding advanced features to the platform. Along those lines, AWS offers scale \\nadvantages to clients in that it is cheaper and faster to set up IT infrastructure in the cloud compared with \\nundertaking the same effort independently. Customers also benefit from the ability to scale up compute power \\nfor burst requirements, paying for only what they need and having it available effectively on-demand. We have \\nseen some of the largest technology companies in the world simply fail to keep pace with Amazon’s massive \\ninvestments in IaaS over the years, and AWS’ cost advantage over its rivals is obvious. Those firms struggle to \\ncompete in a meaningful way against AWS.\\nAmazon has amassed significant technology and process knowledge, which we believe is an intangible asset for \\nthe firm as a whole and also for AWS. These assets could also apply to the logistics aspect of the retail business. \\nThe company expanded its distribution network by roughly 50% in 2020 while managing through a global \\npandemic. Given the size of its footprint, this is a monumental achievement and speaks to the company’s ability \\nto quickly plan, construct, and expand facilities based on specific needs. The knowledge base to quickly and \\nefficiently bring massive server farms on line for AWS is similarly impressive and only comes from the experience \\nof previously building hyperscale data centers. Additionally, the firm designs its own semiconductors, which are \\nused to power its server arrays, and also developed proprietary robotic automation technology used in its \\nfulfillment centers.\\nAs with other large software companies, we see a network effect within AWS’ ecosystem for third-party \\nsoftware, although we view this as more of secondary moat source. The large ecosystem of AWS users has \\nbenefited from the software development efforts of those same users, as they turn around and offer applications \\nwritten on AWS for AWS users. Thus, users help attract other users to AWS. We see Microsoft and Salesforce in \\nparticular as the best comparable examples in software of creating network effects. \\nWe think network effects, intangible assets, cost advantages, and switching combine to form a powerful moat for \\nall of Amazon. We think many of these areas reinforce one another and see little difficulty in Amazon continuing \\nto deliver returns on invested capital well in excess of its cost of capital over the long term.\\nMoat Trend  Dan Romanoff, Senior Equity Analyst, 3 Jun 2022\\nWe assign Amazon a stable moat trend rating. From an e-commerce perspective, we believe the trend skews \\npositive because of secular shifts to online commerce from traditional brick-and-mortar retailers. After more than \\n20 years of online shopping, this is not necessarily sneaking up on investors. However, new or less penetrated \\nretail categories can help fuel this long-term trend. We highlight groceries, apparel, pharmacy, and furniture as \\nsome examples of areas that are gaining traction for online commerce—and for Amazon—from a small base. \\nOnline grocery shopping, in particular, has seen an uptick in demand due to COVID-19; we think there will be a \\nlasting impact, while luxury items are likely still a long-term project but an opportunity for Amazon nonetheless. \\nOn the flip side, we see larger retailers getting their e-commerce houses in order and foresee greater e-\\ncommerce competition over time. We also see “buy online, pick up in store” and contactless curbside pickup as \\ninnovations being made by physical stores. While the selection, low cost, and Prime member benefits would push ',\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 8 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nus to declare a positive moat trend, the general competition for shopping attention and discretionary dollars \\nkeeps our moat trend rating stable for cost advantages, network effects, and intangible assets. We do not view \\nAmazon’s expansion into physical retail, either via its own stores or via Whole Foods, as a sign that Amazon’s \\nretail moat is skewing positive. \\nWe believe the moat trend for AWS is also stable. AWS has grown rapidly and is the clear public cloud leader. \\nThat said, its largest competitor, Microsoft’s Azure, has narrowed the gap over the last several years in terms of \\nfeatures, services, and sheer size. We view this more as the natural evolution of the competitive landscape and \\nnot as shortcomings of AWS. Indeed, the company has clearly continued to invest in AWS and add to the service. \\nWe continue to believe that AWS will be a core growth engine for Amazon’s revenue and profitability over the \\nnext decade, as the public cloud market opportunity remains substantial.\\nGiven the lack of disclosure surrounding the advertising business, we assign a stable trend to this segment. \\nHowever, given its rapid rise, we believe more optimism is possibly warranted. As advertising dollars continue to \\nshift to online channels, Amazon has clearly benefited in a meaningful way. The company has added to its offsite \\ncapabilities, while the onsite inventory remains the key driver, as advertisers value eyeballs and data. We believe \\nthat Amazon’s advertising business is growing approximately as fast as Facebook revenue was growing when \\nFacebook was the size of Amazon’s other business and is growing considerably faster than Google was at the \\nsame scale. Overall, we see clear share gains in online advertising, which we think are a result of years of \\ninvesting in and building out the firm’s advertising platform, but the opaque disclosures around the business \\nkeep us from definitively identifying a positive moat trend around its proprietary data and technology.\\nRisk and Uncertainty  Dan Romanoff, Senior Equity Analyst, 3 Jun 2022\\nWe believe that the uncertainty for Amazon is high and that despite being an e-commerce leader, the company \\nfaces a variety of risks.\\nAmazon must protect its leading online retailing position, which can be challenging as consumer preferences \\nchange, especially post-COVID-19 (as consumers may revert to prior behaviors), and traditional retailers bolster \\ntheir online presence. Maintaining an e-commerce edge has pushed the company to make investments in \\nnontraditional areas, such as producing content for Prime Video and building out its own transportation network. \\nSimilarly, the company must also maintain an attractive value proposition for its third-party sellers. Some of these \\ninvestment areas have raised investor questions in the past, and we expect management to continue to invest \\naccording to its strategy, despite periodic margin pressure from increased spending.\\nThe company must also continue to invest in new offerings. AWS, transportation, and physical stores (both \\nAmazon branded and Whole Foods) are three notable areas of investment. These decisions require capital \\nallocation and management focus and may play out over a period of years rather than quarters.\\nContinued international expansion will likely require similar investment and management attention but will also \\nincrease exposure to different regulatory environments. Some countries have instituted or may institute \\nprotectionist policies. Even domestically over the last several years, lawmakers from both parties have ',\n",
       "│   │   \"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 9 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nincreasingly focused on the amount of market power large technology companies have accrued. Antitrust, data \\nprivacy, and section 230 have been repeatedly invoked.\\nFrom an environmental, social, and governance perspective, data breaches and service outages are a concern for \\nany type of cloud service provider. As a retailer, Amazon has personal information for hundreds of millions of \\nconsumers around the world, while AWS hosts proprietary mission-critical data for enterprises.\\nFinancial Strength  Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nWe believe Amazon is financially sound. Revenue is growing rapidly, margins are expanding, the company has \\nunrivaled scale, and the balance sheet is in great shape. In our view, the marketplace will remain attractive to \\nthird-party sellers, as Prime continues to tightly weave consumers to Amazon. We also see AWS and advertising \\ndriving overall corporate growth and continued margin expansion.\\nAs of Dec. 31, 2022, Amazon had $70.0 billion in cash and marketable securities, offset by $67.2 billion in debt. \\nWe also expect free cash flow generation, which suffered during COVID-19 as the company invested heavily in \\nfacility expansion, content creation, and its transportation network, to return to more normal levels over the next \\ncouple of years.\\nGiven that the company is still in a rapid growth and heavy investment phase, we do not expect it to pay \\ndividends or repurchase shares. The company is acquisitive, but given its size, we characterize all acquisitions \\nthroughout its history as tuck-in, including the largest deal of $14 billion for Whole Foods in 2017 and the $8 \\nbillion MGM deal in 2022. We expect the focus to remain on growth, including heavy investment for AWS and \\ndelivery.\\nCapital Allocation  Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nWe assign Amazon an Exemplary capital allocation rating. The rating reflects our assessments of a sound balance \\nsheet, exceptional investments, and appropriate shareholder distributions. We think reinvestment in the business \\nis most likely to be the key driver of total shareholder returns and is therefore appropriately prioritized over other \\ncapital returns such as dividends and buybacks, which Amazon does not offer.  \\nThe balance sheet is sound with a net cash position. We expect the balance sheet to remain sound as the \\ncompany has typically maintained a conservative position and has historically generated substantial free cash \\nflow from AWS and advertising to fund growth throughout the business.  \\nManagement’s record of investing in areas that investors were initially skeptical of but were ultimately vindicated \\nhas been remarkable. Jeff Bezos founded the company in 1994 and led it until he stepped down as CEO in 2021. \\nHe was succeeded by Andy Jassy, former CEO of AWS. Bezos remains actively involved with the company as \\nexecutive chair of the board, and Jassy has been at the company for 23 years and was a driving force behind the \\nfoundation and growth of AWS. We think Jassy will carry on Bezos' focus on the customer and continue to \\nexplore areas that were ignored or not yet defined. Thus far, the results have been breathtaking. From humble \\nbeginnings, Bezos built Amazon into one of the largest companies in the world. On the e-commerce side, the \",\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 10 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\ncompany has evolved from selling books to selling everything, including groceries, delivering purchases the same \\nday they are ordered, and moving into retail categories that were long thought to be beyond the reach of online \\nshopping. The stickiness of Prime members, the financial stability of subscriptions, the tech world shakeup via \\nAWS, the Kindle—the innovation has been dramatic, and shareholders have been rewarded along the way. \\nUltimately, we assess investment as exceptional.  \\nAmazon’s capital deployment strategy centers around reinvesting in the business and making generally small \\ntuck-in acquisitions. The company does not pay a dividend or repurchase shares, nor do we expect it to over the \\nnext several years.  K',\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 11 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nPrice vs. Fair Value \\n050100150200Fair Value: 137.00\\n3 Feb 2023 05:12, UTC\\nLast Close: 112.91\\nOver Valued\\nUnder Valued\\n2018 2019 2020 2021 2022 YTD\\n0.68 0.80 0.90 0.81 0.56 0.82 Price/Fair Value\\n28.43 23.03 76.26 2.38 -49.62 34.42 Total Return %\\nMorningstar Rating\\nCompetitors\\nAmazon.com Inc  AMZN Microsoft Corp  MSFT Walmart Inc  WMT eBay Inc  EBAY\\nFair Value\\n137.00\\nUncertainty : High\\nLast Close\\n112.91\\nFair Value\\n310.00\\nUncertainty : Medium\\nLast Close\\n264.60\\nFair Value\\n144.00\\nUncertainty : Medium\\nLast Close\\n143.62\\nFair Value\\n60.00\\nUncertainty : High\\nLast Close\\n51.66\\nEconomic Moat\\n Wide\\n Wide\\n Wide\\n Narrow\\nMoat Trend Stable Stable Stable Negative\\nCurrency USD USD USD USD\\nFair Value 137.00 3 Feb 2023 05:12, UTC 310.00 3 Feb 2023 05:12, UTC1 144.00 3 Feb 2023 05:12, UTC2 60.00 3 Feb 2023 05:12, UTC3\\n1-Star Price 212.35 418.50 194.40 93.00\\n5-Star Price 82.20 217.00 100.80 36.00\\nAssessment Under Valued 2 Feb 2023 Under Valued 2 Feb 2023 Fairly Valued 2 Feb 2023 Under Valued 2 Feb 2023\\nMorningstar Rating QQQQ3 Feb 2023 05:14, UTC QQQQ2 Feb 2023 22:29, UTC QQQ2 Feb 2023 22:29, UTC QQQQ2 Feb 2023 22:29, UTC\\nAnalyst Dan Romanoff, Senior Equity Analyst Dan Romanoff, Senior Equity Analyst Zain Akbari, Equity Analyst Sean Dunlop, Equity Analyst\\nCapital Allocation Exemplary Exemplary Standard Standard\\nPrice/Fair Value 0.82 0.85 1.00 0.86\\nPrice/Sales 2.24 9.72 0.66 3.01\\nPrice/Book 7.89 10.76 5.36 5.78\\nPrice/Earnings — 29.40 44.19 —\\nDividend Yield — 0.96% 1.56% 1.70%\\nMarket Cap 1,072.70 Bil 1,881.42 Bil 390.15 Bil 27.35 Bil\\n52-Week Range 81.43—170.83 213.43—315.95 117.27—160.77 35.92—60.66\\nInvestment Style Large Growth Large Growth Large Value Mid Core',\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 12 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nMorningstar Valuation Model Summary\\nFinancials as of 02 Feb 2023 Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nRevenue (USD Mil) 386,064 469,822 513,983 545,336 607,352 673,289 743,075 817,464\\nOperating Income (USD Mil) 22,899 24,879 12,248 11,747 22,593 31,173 40,795 51,909\\nEBITDA (USD Mil) 48,150 59,175 53,709 58,929 72,548 82,747 95,782 109,458\\nAdjusted EBITDA (USD Mil) 57,358 71,932 73,330 82,561 98,872 100,798 115,392 130,688\\nNet Income (USD Mil) 21,331 33,364 -2,722 9,797 18,329 25,372 33,167 42,364\\nAdjusted Net Income (USD Mil) 21,331 33,364 -2,722 9,797 18,329 25,372 33,167 42,364\\nFree Cash Flow To The Firm (USD Mil) 18,358 -35,416 -31,177 22,568 13,990 25,176 34,251 44,055\\nWeighted Average Diluted Shares Outstanding (Bil) 10 10 10 10 11 11 11 11\\nEarnings Per Share (Diluted) (USD) 2.09 3.24 -0.27 0.94 1.75 2.42 3.16 4.03\\nAdjusted Earnings Per Share (Diluted) (USD) 2.09 3.24 -0.27 0.94 1.75 2.42 3.16 4.03\\nDividends Per Share (USD) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00\\nMargins & Returns as of 02 Feb 2023 Actual Forecast\\n3 Year Avg 2020 2021 2022 2023 2024 2025 2026 2027 5 Year Avg\\nOperating Margin % 4.5 5.9 5.3 2.4 2.2 3.7 4.6 5.5 6.4 4.5\\nEBITDA Margin % — 12.5 12.6 10.5 10.8 12.0 12.3 12.9 13.4 —\\nAdjusted EBITDA Margin % 14.8 14.9 15.3 14.3 15.1 16.3 15.0 15.5 16.0 15.6\\nNet Margin % 4.0 5.5 7.1 -0.5 1.8 3.0 3.8 4.5 5.2 3.7\\nAdjusted Net Margin % 4.0 5.5 7.1 -0.5 1.8 3.0 3.8 4.5 5.2 3.7\\nFree Cash Flow To The Firm Margin % -2.9 4.8 -7.5 -6.1 4.1 2.3 3.7 4.6 5.4 4.0\\nGrowth & Ratios as of 02 Feb 2023 Actual Forecast\\n3 Year CAGR 2020 2021 2022 2023 2024 2025 2026 2027 5 Year CAGR\\nRevenue Growth % 22.4 37.6 21.7 9.4 6.1 11.4 10.9 10.4 10.0 9.7\\nOperating Income Growth % -5.6 57.5 8.6 -50.8 -4.1 92.3 38.0 30.9 27.2 33.5\\nEBITDA Growth % 0.0 — — — — — — — — 0.0\\nAdjusted EBITDA Growth % 19.3 32.8 25.4 1.9 12.6 19.8 2.0 14.5 13.3 12.3\\nEarnings Per Share Growth % -161.4 — — — — — — — — —\\nAdjusted Earnings Per Share Growth % -161.4 81.8 55.0 -108.2 -454.0 85.7 38.4 30.7 27.7 —\\nValuation as of 02 Feb 2023 Actual Forecast\\n2020 2021 2022 2023 2024 2025 2026 2027\\nPrice/Earnings 77.9 51.5 -311.1 120.1 64.5 46.7 35.7 28.0\\nPrice/Sales 2.4 3.5 3.3 2.1 1.9 1.7 1.6 1.4\\nPrice/Book 17.8 12.4 5.9 7.5 6.8 5.9 5.1 4.3\\nPrice/Cash Flow 35.5 -111.2 -100.5 46.6 28.2 26.2 21.0 17.3\\nEV/EBITDA 16.3 23.0 23.6 14.8 12.4 12.1 10.6 9.3\\nEV/EBIT 40.9 66.4 141.4 104.0 54.1 39.2 29.9 23.5\\nDividend Yield % — — — — — — — —\\nDividend Payout % 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0\\nFree Cash Flow Yield % 2.8 -0.9 -1.0 2.2 3.6 3.8 4.8 5.8\\nOperating Performance / Profitability as of 02 Feb 2023 Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nROA % 7.8 9.0 -0.6 2.1 3.6 4.6 5.5 6.3\\nROE % 27.4 28.8 -1.9 6.5 11.1 13.6 15.4 16.7\\nROIC % 30.3 25.6 12.3 13.6 15.8 14.2 15.0 16.4',\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 13 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nFinancial Leverage Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nDebt/Capital % 25.4 26.1 31.5 30.3 27.7 23.8 19.8 17.3\\nAssets/Equity 3.4 3.0 3.2 3.1 3.0 2.9 2.7 2.6\\nNet Debt/EBITDA -1.1 -0.8 -0.1 -0.4 -0.6 -0.8 -1.1 -1.3\\nTotal Debt/EBITDA 0.6 0.7 0.9 0.8 0.7 0.6 0.5 0.4\\nEBITDA/ Net Interest Expense 34.8 39.8 31.0 33.6 40.7 42.8 51.8 63.9\\nKey Valuation Drivers as of 02 Feb 2023\\nCost of Equity % 9.0\\nPre-Tax Cost of Debt % 5.5\\nWeighted Average Cost of Capital % 8.8\\nLong-Run Tax Rate % 21.0\\nStage II EBI Growth Rate % 8.4\\nStage II Investment Rate % -47.2\\nPerpetuity Year 20\\nAdditional estimates and scenarios available for download at https://pitchbook.com/. Discounted Cash Flow Valuation as of 02 Feb 2023\\nUSD Mil\\nPresent Value Stage I 317,062\\nPresent Value Stage II 601,448\\nPresent Value Stage III 494,586\\nTotal Firm Value 1,413,096\\nCash and Equivalents 70,026\\nDebt -67,150\\nOther Adjustments 1\\nEquity Value 1,415,973\\nProjected Diluted Shares 10\\nFair Value per Share  (USD) 137.00',\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 14 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nIncome Statement (USD) Actual Forecast \\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nRevenue (Mil)386,064 469,822 513,983 545,336 607,352 673,289 743,075 817,464\\nCost of Goods Sold (Mil) 233,307 272,344 288,831 313,568 348,013 383,775 421,695 461,867\\nGross Profit (Mil) 152,757 197,478 225,152 231,768 259,339 289,514 321,380 355,597\\nSelling, General, Administrative & Other Expenses (Mil) 129,932 172,537 211,641 219,530 236,260 257,870 280,139 303,279\\nAdvertising & Marketing Expenses — — — — — — — —\\nResearch & Development — — — — — — — —\\nDepreciation & Amortization (if reported separately) — — — — — — — —\\nAdjusted Operating Income (Mil) 22,899 24,879 12,248 11,747 22,593 31,173 40,795 51,909\\nFinancial Non-Cash (Gains)/Losses (Mil) 0 0 0 0 0 0 0 0\\nIrregular Cash (Gains)/Losses (Mil) 0 0 0 0 0 0 0 0\\nOperating Income (Mil) 22,899 24,879 12,248 11,747 22,593 31,173 40,795 51,909\\nNet Interest Expense (Mil) -1,279 -13,272 18,184 -654 -607 -943 -1,189 -1,717\\nIncome Tax Expense (Mil) 2,863 4,791 -3,217 2,604 4,872 6,744 8,817 11,261\\nAfter-Tax Items (Mil) 0 0 0 0 0 0 0 0\\n(Minority Interest) (Mil) 16 4 -3 0 0 0 0 0\\nNet Income (Mil) 21,331 33,364 -2,722 9,797 18,329 25,372 33,167 42,364\\nAdjusted Net Income (Mil) 21,331 33,364 -2,722 9,797 18,329 25,372 33,167 42,364\\nWeighted Average Diluted Shares Outstanding (Bil) 10 10 10 10 11 11 11 11\\nDiluted Earnings Per Share 2.09 3.24 -0.27 0.94 1.75 2.42 3.16 4.03\\nDiluted Adjusted Earnings Per Share 2.09 3.24 -0.27 0.94 1.75 2.42 3.16 4.03\\nDividends Per Common Share (USD)0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00\\nEBITDA (Mil) 48,150 59,175 53,709 58,929 72,548 82,747 95,782 109,458\\nAdjusted EBITDA (Mil) 57,358 71,932 73,330 82,561 98,872 100,798 115,392 130,688',\n",
       "│   │   \"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 15 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nKey Cash Flow Items (USD) Actual Forecast as of 2 Feb\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nCash from Working Capital (Mil) 31,549 -1,313 1,893 5,171 6,951 9,542 10,110 10,739\\n(Capital Expenditures) (Mil) -40,141 -61,053 -63,645 -61,078 -60,735 -60,596 -63,161 -65,397\\nDepreciation (Mil) 25,251 34,296 41,461 46,419 49,196 50,901 54,319 56,896\\nAmortization (Mil) — — — 763 759 673 669 654\\nNet New (Investment), Organic (Mil) -1,409 -46,368 -43,070 13,524 -3,618 876 2,354 3,393\\n(Purchases)/Sales of Companies & Assets (Mil) 2,771 3,672 -2,992 -1,000 -1,000 -1,000 -1,000 -1,000\\nNet New (Investment), Total (Mil) 1,362 -42,696 -46,062 12,524 -4,618 -124 1,354 2,393\\nOther Non-Cash Items, From Cash Flows (Mil) -2,653 -14,169 17,426 763 759 673 669 654\\nFree Cash Flow to the Firm (Mil) 18,358 -35,416 -31,177 22,568 13,990 25,176 34,251 44,055\\nBalance Sheet (USD) Actual Forecast \\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nAssets \\nCash and Equivalents (Mil) 42,122 36,220 53,888 77,628 90,887 112,619 142,768 188,179\\nInventory (Mil) 23,795 32,640 34,405 37,800 41,952 46,263 50,834 55,677\\nAccounts Receivable (Mil) 24,542 32,891 42,360 37,352 41,599 46,116 50,896 55,991\\nNet Property, Plant and Equipment (Mil) 113,114 160,281 186,715 201,384 212,933 222,639 231,491 240,003\\nGoodwill (Mil) 15,017 15,371 20,288 20,538 20,788 21,038 21,288 21,538\\nOther Intangibles (Mil) 0 0 0 -63 -123 -96 -65 -19\\nOther Operating Assets (Mil) 60,331 83,317 108,881 95,434 103,250 111,093 118,892 126,707\\nNon-Operating Assets (Mil) 0 0 0 0 0 0 0 0\\nTotal Assets (Mil) 321,195 420,549 462,675 486,209 527,425 575,810 632,242 704,214\\nLiabilities \\nAccounts Payable  (Mil) 72,539 78,664 79,600 88,057 95,346 105,144 115,533 126,539\\nDebt (Mil) 31,816 48,744 67,150 67,804 66,593 62,404 57,362 57,362\\nOther Operating Liabilities (Mil) 123,436 154,896 169,882 174,507 191,316 208,720 226,638 245,239\\nNon-Operating Liabilities (Mil) 0 0 0 0 0 0 0 0\\nTotal Liabilities (Mil) 227,791 282,304 316,632 330,368 353,255 376,268 399,533 429,140\\nEquity \\nShareholders' Equity (Mil) 93,404 138,245 146,043 155,841 174,171 199,542 232,709 275,074\\nMinority Interest (Mil) 0 0 0 0 0 0 0 0\\nTotal Equity (Mil) 93,404 138,245 146,043 155,841 174,171 199,542 232,709 275,074\",\n",
       "│   │   \"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 16 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nManagement & Ownership\\nManagement Activity  as of 31 Mar 2022\\nName Position Share Held Report Date* Insider Activity\\nWendell P. Weeks Independent Director 1,935 31 Mar 2022 380\\nAndrew R. Jassy Director, President and Chief Executive Officer 1,988,380 31 Dec 2022 302,569\\nJeffrey P. Bezos Executive Chairman of the Board 992,633,688 31 Dec 2022 4,586,455\\nPatricia Q. Stonesifer Independent Director 46,220 31 Dec 2022 14,299\\nShelley L. Reynolds Vice President, Worldwide Controller, and Principal Accounting Officer 129,200 31 Dec 2022 22,953\\nJamie S. Gorelick Independent Director 28,836 31 Dec 2022 5,756\\nJonathan J. Rubinstein Lead Independent Director 124,880 31 Dec 2022 14,299\\nEdith W. Cooper Independent Director 6,180 31 Dec 2022 3,800\\nDavid A. Zapolsky Senior Vice President, General Counsel and Secretary 133,220 31 Dec 2022 105,042\\nBrian T. Olsavsky Senior Vice President and Chief Financial Officer 148,260 31 Dec 2022 109,733\\nFund Ownership  as of 31 Jan 2023\\nTop Owners % of Shares Held % of Fund Assets Change (k) Portfolio Date\\nVanguard US Total Market Shares ETF 2.59 2.04 2,696,043 31 Dec 2022\\nVanguard Total Stock Market Index Fund 2.59 1.92 2,696,043 31 Dec 2022\\nVanguard Instl Ttl Stck Mkt Idx Tr 2.53 2.76 3,585,594 30 Sep 2022\\nVanguard 500 Index Fund 2.01 2.31 2,076,427 31 Dec 2022\\nInvesco QQQ Trust 1.00 6.72 -461,136 31 Jan 2023\\nConcentrated Holders\\nAmazon (AMZN) Yield Shares Prps ETF 0.00 — 235 31 Jan 2023\\nTarpon US Equities I FIA IE 0.00 27.02 42 30 Sep 2022\\niShares S&P 500 Cnsmr Discr Sect ETF 0.01 25.15 0 30 Jan 2023\\nProFund VP Consumer Services 0.00 24.94 382 30 Sep 2022\\nConsumer Discret Sel Sect SPDR® Fd 0.34 24.83 -125,349 31 Jan 2023\\nInstitutional Transactions  as of 31 Jan 2023\\nTop 5 Buyers % of Shares Held % of Fund Assets Shrs Bought/Sold (k) Portfolio Date\\nFMR Inc 2.96 3.56 16,008,843 30 Sep 2022\\nT. Rowe Price Investment Management,Inc. 0.15 1.42 15,772,420 30 Sep 2022\\nWellington Management Company LLP 0.72 1.77 14,685,084 30 Sep 2022\\nVanguard Group Inc 6.88 2.33 12,456,995 30 Sep 2022\\nSusquehanna International Group, LLP 0.24 0.73 9,597,517 30 Sep 2022\\nTop 5 Sellers\\nT. Rowe Price Associates, Inc. 2.77 5.24 -29,369,893 30 Sep 2022\\nAllianz Asset Management AG 0.07 1.69 -10,580,148 30 Sep 2022\\nHHG PLC 0.32 2.73 -6,377,103 30 Sep 2022\\nJPMorgan Chase & Co 0.99 1.63 -6,254,171 30 Sep 2022\\nBlackRock Inc 5.71 2.24 -5,331,976 30 Sep 2022\\n*Represents the date on which the owner's name, position, and common shares held were reported by the holder or issuer.\",\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 17 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nComparable Company Analysis  These companies are chosen by the analyst and the data are shown by nearest calendar year in descending market capitalization order.\\nValuation Analysis  as of  02 Feb 2023 Price/Earnings EV/EBITDA Price/Free Cash Flow Price/Book Price/Sales \\nCompany/Ticker 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E)\\nMicrosoft Corp  MSFT 28.5 24.6 22.0 17.8 15.8 14.2 27.5 23.0 20.4 9.6 8.0 6.7 9.4 8.5 7.7\\nWalmart Inc  WMT 23.4 21.3 19.3 12.1 11.5 10.8 25.8 26.3 23.1 5.1 4.9 4.6 0.6 0.6 0.6\\neBay Inc  EBAY 14.0 12.6 12.3 8.7 10.3 10.4 17.9 18.3 13.6 4.5 9.8 8.6 3.8 2.9 3.0\\nAverage 22.0 19.5 17.9 12.9 12.5 11.8 23.7 22.5 19.0 6.4 7.6 6.6 4.6 4.0 3.8\\nAmazon.com Inc  AMZN -311.1 120.1 64.5 23.6 14.8 12.4 -100.0 46.5 28.2 5.9 7.5 6.8 3.3 2.1 1.9\\nReturns Analysis  as of  02 Feb 2023 ROIC % Adjusted ROIC % Return on Equity % Return on Assets % Dividend Yield % \\nCompany/Ticker 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E)\\nMicrosoft Corp  MSFT 33.2 34.2 35.4 46.1 48.4 50.8 37.3 35.2 33.0 17.9 18.3 18.0 1.0 1.1 1.2\\nWalmart Inc  WMT 15.0 15.7 16.3 12.1 12.7 13.3 12.5 23.2 24.4 4.1 7.1 7.6 1.6 1.7 1.9\\neBay Inc  EBAY 31.3 84.2 34.9 94.6 280.2 109.1 204.0 -23.4 56.5 59.3 -6.8 9.9 1.1 1.7 1.9\\nAverage 26.5 44.7 28.9 50.9 113.8 57.7 84.6 11.7 38.0 27.1 6.2 11.8 1.2 1.5 1.7\\nAmazon.com Inc  AMZN 12.3 13.6 15.8 11.4 12.6 14.7 -1.9 6.5 11.1 -0.6 2.1 3.6 — — —\\nGrowth Analysis  as of  02 Feb 2023 Revenue Growth % EBIT Growth % EPS Growth % FCF Growth % DPS Growth % \\nCompany/Ticker 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E)\\nMicrosoft Corp  MSFT 5.5 10.4 10.7 2.7 12.7 11.7 1.0 15.5 12.0 122.2 -8.7 38.7 8.1 7.5 6.9\\nWalmart Inc  WMT 6.0 3.3 3.2 -6.6 7.1 7.8 -5.0 9.7 10.9 -24.4 2.3 13.5 1.8 9.5 12.5\\neBay Inc  EBAY 1.5 -6.6 -3.2 7.8 -17.5 -1.1 -28.8 -13.6 2.4 113.2 -58.7 -59.3 12.5 22.2 11.5\\nAverage 4.3 2.4 3.6 1.3 0.8 6.1 -10.9 3.9 8.4 70.3 -21.7 -2.4 7.5 13.1 10.3\\nAmazon.com Inc  AMZN 9.4 6.1 11.4 -50.8 -4.1 92.3 -108.2 -454.0 85.7 -12.0 -172.4 -38.0 — — —\\nProfitability Analysis  as of  02 Feb 2023 Gross Margin % EBITDA Margin % Operating Margin % Net Margin % FCF Margin % \\nCompany/Ticker 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E)\\nMicrosoft Corp  MSFT 68.5 68.6 69.0 51.9 52.8 53.2 40.9 41.8 42.2 33.2 34.5 34.7 34.2 37.0 37.8\\nWalmart Inc  WMT 24.3 25.0 25.1 6.0 6.1 6.3 4.0 4.2 4.3 2.8 2.9 3.0 2.5 2.4 2.6\\neBay Inc  EBAY 74.6 72.7 72.9 37.7 32.7 33.5 28.1 24.8 25.3 30.2 23.5 22.3 21.2 15.8 21.9\\nAverage 55.8 55.4 55.7 31.9 30.5 31.0 24.3 23.6 23.9 22.1 20.3 20.0 19.3 18.4 20.8\\nAmazon.com Inc  AMZN 43.8 42.5 42.7 14.3 15.1 16.3 2.4 2.2 3.7 -0.5 1.8 3.0 -3.3 4.5 6.7\\nLeverage Analysis  as of  02 Feb 2023 Debt/Equity % Debt/Total Cap % EBITDA/Net Int. Exp Total Debt/EBITDA Asset/Equity \\nCompany/Ticker 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E)\\nMicrosoft Corp  MSFT 21.4 17.3 13.8 17.6 14.7 12.1 -559.4 — NM 0.4 0.3 0.3 2.0 1.9 1.8\\nWalmart Inc  WMT 58.9 57.4 55.7 37.1 36.5 35.8 20.4 20.0 21.3 1.2 1.2 1.1 3.2 3.2 3.2\\neBay Inc  EBAY 92.9 268.6 248.7 48.2 72.9 71.3 14.6 13.6 13.0 2.3 2.5 2.4 2.7 5.9 5.6\\nAverage 57.7 114.4 106.1 34.3 41.4 39.7 -174.8 16.8 17.1 1.3 1.3 1.3 2.6 3.7 3.5\\nAmazon.com Inc  AMZN 46.0 43.5 38.2 31.5 30.3 27.7 31.0 33.6 40.7 0.9 0.8 0.7 3.2 3.1 3.0\\nLiquidity Analysis  as of  02 Feb 2023 Cash per Share Current Ratio Quick Ratio Cash/Short-Term Debt Payout Ratio % \\nCompany/Ticker 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E) 2022 2023(E) 2024(E)\\nMicrosoft Corp  MSFT 18.9 22.4 28.8 2.1 2.2 2.4 2.1 2.2 2.4 62.8 55.5 60.5 28.8 26.8 25.6\\nWalmart Inc  WMT 5.1 4.5 4.2 0.9 0.9 0.8 0.3 0.2 0.2 — — — 61.2 36.5 37.0\\neBay Inc  EBAY 2.4 0.9 0.4 2.0 0.8 0.8 2.0 0.8 0.8 1.2 0.4 0.2 3.5 -33.0 29.1\\nAverage 7.9 8.8 10.5 1.5 1.2 1.3 1.3 1.0 1.1 16.0 22.5 21.9 23.4 7.6 22.9\\nAmazon.com Inc  AMZN 5.3 7.4 8.7 0.9 1.0 1.1 0.7 0.8 0.8 — 34.0 27.1 0.0 0.0 0.0',\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 18 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nCompetitors Price vs. Fair Value\\nMicrosoft Corp  MSFT\\n0100200300400Fair Value: 310.00\\n25 Jan 2023 04:36, UTC\\nLast Close: 264.60\\nOver Valued\\nUnder Valued\\n2018 2019 2020 2021 2022 YTD\\n0.78 1.02 0.95 0.97 0.75 0.85 Price/Fair Value\\n20.75 57.12 42.37 52.24 -27.94 10.33 Total Return %\\nMorningstar Rating\\nTotal Return % as of 2 Feb 2023. Last Close as of 2 Feb 2023. Fair Value as of 25 Jan 2023 04:36, UTC.\\nWalmart Inc  WMT\\n050100150200Fair Value: 144.00\\n31 Jan 2023 09:02, UTC\\nLast Close: 143.62\\nOver Valued\\nUnder Valued\\n2018 2019 2020 2021 2022 YTD\\n0.99 1.13 1.16 1.00 1.02 1.00 Price/Fair Value\\n-3.56 29.86 23.12 1.90 -0.46 1.29 Total Return %\\nMorningstar Rating\\nTotal Return % as of 2 Feb 2023. Last Close as of 2 Feb 2023. Fair Value as of 31 Jan 2023 09:02, UTC.',\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 19 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nCompetitors Price vs. Fair Value  (Continued)\\neBay Inc  EBAY\\n050100150200Fair Value: 60.00\\n6 Nov 2022 22:59, UTC\\nLast Close: 51.66\\nOver Valued\\nUnder Valued\\n2018 2019 2020 2021 2022 YTD\\n0.78 0.95 0.91 0.92 0.69 0.86 Price/Fair Value\\n-25.62 30.64 40.93 33.77 -36.32 24.57 Total Return %\\nMorningstar Rating\\nTotal Return % as of 2 Feb 2023. Last Close as of 2 Feb 2023. Fair Value as of 6 Nov 2022 22:59, UTC.',\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 20 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nRecent Analyst Notes\\nNear-Term Pressure Not Unique to Amazon; Well-Positioned for Long-Term Growth; FVE Cut to $150  Dan \\nRomanoff,Senior Equity Analyst,28 Oct 2022\\nAmazon reported disappointing third-quarter results and provided investors with soft fourth-quarter guidance, \\nwith the performance of AWS being our greatest near-term concern. This quarter stings, as this was supposed to \\nbe the quarter where Amazon had finally lapped pandemic-fueled issues. We continue to believe long-term \\ngrowth driven by e-commerce proliferation, AWS, and advertising, but the near term is clouded by a variety of \\nmacroeconomic issues, including currency headwinds, high inflation, soaring energy costs, and deceleration in \\nAWS. We can look through these issues but we believe they are likely to persist throughout 2023, which \\ndecreases our confidence over the medium term as well. We are lowering our growth and profitability \\nassumptions, and in turn our fair value estimate drops to $150 per share, from $192 previously. Still, we are not \\nready to throw in the towel on Amazon and we see shares as attractive, but clearly the company has still not \\nfound stable footing on its path out of the pandemic.Third-quarter revenue grew 15% year over year as reported, \\nor 19% in constant currency, to $127.1 billion, compared with guidance of $125 billion to $130 billion. Currency \\ncontinued to worsen throughout the quarter, which crimped revenue growth. From a retail perspective, online \\nstores grew 7% year over year as reported, physical stores improved 10%, third-party seller services grew 18%, \\nand subscription services increased 9%. Prime Day was held in the third quarter of 2022, compared with the \\nsecond quarter in 2022, which resulted in an artificial 400 basis points of revenue growth for Amazon this \\nquarter. The two most critical segments, AWS and advertising, grew 27% and 25% over the year-ago period, \\nrespectively. AWS enjoyed strong backlog growth, but was proactively helping customers manage cloud \\ncomputing costs as the economy slows. Compared with our model, online stores, subscription services, and AWS \\ndrove the revenue miss. \\nAmazon Shows Signs of Life With Solid Results and Guidance; FVE $192  Dan Romanoff,Senior Equity \\nAnalyst,29 Jul 2022\\nAmazon reported good second-quarter top-line and bottom-line results which were ahead of FactSet consensus \\nexpectations and provided an encouraging revenue outlook for the third quarter. While AWS remains a \\ntremendous opportunity and performed well once again, the more important takeaway this quarter is that retail-\\nrelated businesses, especially third-party seller services, are coming back and even delivered some upside \\ncompared with our expectations. We are not ready to declare victory for the company just yet, but we are \\nencouraged by results and note that the pandemic-fueled growth surge is now removed from prior-year \\ncomparisons, so growth should optically improve going forward.We are maintaining our $192 fair value estimate \\nfor wide-moat Amazon. Even with shares up as much as 14% after hours, we continue to view shares as \\nattractive, as Amazon remains one of our top picks.Second-quarter revenue grew 7% year over year as reported, \\nor 10% in constant currency, to $121.2 billion, compared with guidance of $116 billion to $121 billion. The ',\n",
       "│   │   \"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 21 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\ncurrency headwind was 120 basis points worse than what was called for within guidance. For perspective, the \\ncomparison last year was 27% growth, so still challenging. In short, the top-line performance is showing \\nimprovement and was solid. From a retail perspective, online stores declined 3% year over year, physical stores \\nimproved 12%, third-party seller services grew 9%, and subscription services increased 10%. Increases on Prime \\nmembership fees and third-party seller fees helped revenue while Prime member churn was better than \\nexpected. Unit growth was 1%. The two most critical segments, AWS and advertising, grew 33% and 18% over \\nthe year-ago period, respectively. Compared with our model, third-party seller services and AWS drove the \\nlargest revenue outperformance. \\nAmazon's Profitability Hit by Inflation, Excess Capacity; Guidance Doesn't Help; FVE Down to $3,850  Dan \\nRomanoff,Senior Equity Analyst,29 Apr 2022\\nWe are lowering our fair value estimate to $3,850 per share, from $4,100, for wide-moat Amazon after it reported \\na mixed quarter and issued worse than expected guidance for the second quarter. The highlight of results was \\nstrength in AWS, which continues to benefit from the ongoing shift of enterprise workloads to the cloud. While \\nrevenue was ahead of the guidance midpoint, first-party sales suffered its second straight quarter of year-over-\\nyear contraction, which we believe is a first but is not a surprise. Operating margin was a concern, as inflation, \\nexcess labor, and excess capacity ate into profitability, which came in just above the low end of guidance and \\nwas well short of our expectations. Meanwhile, second-quarter guidance is well short of our model, as we think \\nprofitability challenges will linger for a couple of quarters and perhaps into next year; Prime Day will move into \\nthe third quarter, and demand levels have not yet normalized post-COVID-19. While we expect the second half of \\nthe year to show improvements, we modestly lowered our growth and profitability estimates, particularly in the \\nnear term, to account for guidance and heightened uncertainty.First-quarter revenue grew 7% (8% in constant \\ncurrency) year over year to $116.4 billion, compared with guidance of $112 billion to $117 billion. Pandemic-\\nfueled growth last year in online stores and third-party seller services continued to slow to a 3% decline and 7% \\ngrowth year over year in the quarter, respectively, while physical stores continue to benefit from consumers \\nleaving their homes to shop and grew by 17% year over year. Unit growth was flat, but we view this as a mix \\nissue as shopping habits normalize. Amazon noted no consumer slowdown as macro factors such as inflation and \\nthe Russian invasion loom large. Compared with the year-ago period, subscription services slowed to 11% \\ngrowth, AWS posted strong 37% growth, and advertising decelerated to 23% growth. \\nAmazon Delivers Mixed Quarter, Light Guidance, and Prime Price Hike; FVE Steady at $4,100  Dan \\nRomanoff,Senior Equity Analyst,4 Feb 2022\\nWe are maintaining our fair value estimate for wide-moat Amazon at $4,100 per share, and despite shares rising \\n14% after hours, we still view shares as undervalued. We think the highlight of the quarter was Amazon's plan to \\nraise prices in the U.S. on Prime to $139 from $119, beginning on Feb. 18 for new members, underscoring \\nAmazon's pricing power and highlighting Prime as a revenue driver. Meanwhile, Amazon will continue to invest \",\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 22 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nheavily in Amazon Web Services, or AWS, fulfilment capacity and delivery, although we see these beginning to \\nease in the second half of 2022. Overall, we do not see issues with the long-term story as Amazon remains well \\npositioned to prosper from the secular shift toward e-commerce and the public cloud over the next \\ndecade.Fourth-quarter revenue grew 9% (10% in constant currency) year over year to $137.4 billion, compared \\nwith guidance of $130 billion to $140 billion. Pandemic-fueled growth last year in online stores and third-party \\nseller services continued to slow to a 1% decline and 11% growth year over year in the quarter, respectively, \\nwhile physical stores enjoyed the benefit of easing lockdowns and grew by 17% year over year. The company \\ncontinues to suffer from labor issues and increasing shipping costs, although the impact from these items came \\nin as expected for the quarter. Still, operating profit came in better than we anticipated and above the high end \\nof the guidance range.Compared with the year-ago period, subscription services slowed to 15% growth, AWS \\naccelerated again to 40% growth, and advertising decelerated to 32% growth. Management broke out \\nadvertising revenue as a distinct segment for the first time—we were pleased to see that it was 93% of the \\n\"other\" segment and was higher than our prior estimates. Performance of AWS remains impressive with a fourth \\nstraight quarter of acceleration off of a $13 billion revenue base a year ago. We continue to view advertising and \\nAWS as key long-term drivers for shares. \\nWage and Shipping Inflation Crimping Amazon’s Near-Term Margins; FVE Down to $4,100  Dan \\nRomanoff,Senior Equity Analyst,29 Oct 2021\\nWe are lowering our fair value estimate for wide-moat Amazon to $4,100 per share from $4,200, based mainly on \\nmargin pressures arising from hiring and shipping challenges, which we think may pressure profitability in the \\nnear term and, to a lesser extent, the long term. That said, we see shares as attractive. Amazon reported third-\\nquarter results that came in above the midpoints of its guidance range for both revenue and operating income \\nbut were still shy of investor expectations. Guidance for the fourth quarter was modestly below our expectations \\nbut has little bearing on our long-term view. Meanwhile, the company continues to rapidly add capacity in order \\nto meet customer demand and one day delivery, even as it roughly doubled its footprint during the past two \\nyears. We don’t see issues with the long-term story as Amazon remains well positioned to prosper from the \\nsecular shift toward e-commerce and the public cloud over the next decade, but we do see a modest reset in \\nterms of growth and profitability through the next several quarters.Third-quarter revenue grew 15% (15% in \\nconstant currency) year over year to $110.8 billion, compared with FactSet consensus of $111.6 billion and \\nguidance of $106 billion to $112 billion. Surging growth last year in online stores and third-party seller services \\nslowed to 3% and 19% year over year gains in the third quarter, respectively, while physical stores accelerated to \\n13% growth. This shift succinctly captures the dynamics of the end of COVID-driven lockdowns. On a year over \\nyear basis, subscription services slowed to 24% growth, AWS accelerated to 39% growth, and other decelerated \\nto 50% growth. Performance of AWS was staggering with acceleration from a $12 billion base a year ago. We \\ncontinue to view advertising (in “other”) and AWS as key long-term growth drivers for the firm. ',\n",
       "│   │   \"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 23 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ  3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nAmazon E-Commerce Growth Slows as COVID-19 Eases; Other Segments Still Strong; FVE Steady at $4,200  \\nDan Romanoff,Senior Equity Analyst,30 Jul 2021\\nWide-moat Amazon reported second-quarter results that were within its guidance range but were slightly short \\nof investor expectations for both revenue and operating profit. Guidance for the third quarter is also light \\ncompared with FactSet consensus. In short, consumers' online shopping levels are returning to more normal \\nlevels as they shift some spending to other entertainment sources and offline shopping. Meanwhile, the \\ncompany continues to add capacity at a breakneck pace in order to meet customer demand and one day delivery, \\neven as it roughly doubled its footprint during the last 18 months. We see no cracks in the long-term story as \\nAmazon remains well positioned to prosper from the secular shift toward e-commerce and the public cloud over \\nthe next decade. We note revenue weakness was limited to Amazon’s own online store segment, with other \\nsegments performing well and overall profitability impressive despite lower revenue. Our model changes are \\nfairly modest, thus we are maintaining our $4,200 per share fair value estimate and see shares as \\nundervalued.Second-quarter revenue grew 27% (24% in constant currency) year over year to $113.1 billion, \\ncompared with FactSet consensus of $115.3 billion and guidance of $110 billion to $116 billion. Meteoric growth \\nin online stores from the last four quarters slowed to a more pedestrian 16% year-over-year increase while \\nphysical stores recovered from a year of declining revenue and grew 11% year over year. Still, third party seller \\nservices grew 38% year over year despite a marked slowdown, as the solution remains attractive to merchants. \\nSubscription services, AWS, and other remained strong, with year-over-year growth of 32%, 37%, and 88%, \\nrespectively. We continue to view advertising (in “other”) and AWS as key long-term growth drivers for the firm. \\nIn particular we see AWS as the clear leader in public cloud and we think Amazon’s advertising business offers a \\nunique value proposition for marketers. \",\n",
       "│   │   \"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 24 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\nMorningstar Equity Research Star Rating Methodology\\nOverview\\nAt the heart  of our valuation  system  is a detailed  projec-\\ntion of a company’s  future  cash  flows,  resulting  from  our \\nanalysts’  research.  Analysts  create  custom  industry  and \\ncompany  assumptions  to feed income  statement,  balance \\nsheet,  and capital  investment  assumptions  into our glob-\\nally standardized,  proprietary  discounted  cash  flow,  or \\nDCF,  modeling  templates.  We use scenario  analysis,  inde-\\npth competitive advantage analysis, and a variety of other \\nanalytical  tools  to augment  this process.  Moreover,  we \\nthink  analyzing  valuation  through  discounted  cash  flows \\npresents  a better  lens for viewing  cyclical  companies, \\nhigh-growth  firms,  businesses  with  finite  lives  (e.g., \\nmines),  or companies  expected  to generate  negative \\nearnings  over the next few years.  That said,  we don’t  dis-\\nmiss multiples  altogether  but rather  use them  as support-\\ning cross-checks  for our DCF-based  fair value  estimates. \\nWe also acknowledge  that DCF models  offer  their  own \\nchallenges  (including  a potential  proliferation  of estim-\\nated inputs  and the possibility  that the method  may miss \\nshortterm  market-price  movements),  but we believe  these \\nnegatives  are mitigated  by deep  analysis  and our \\nlongterm approach.\\nMorningstar’s  equity  research  group  (”we,”  “our”)  be-\\nlieves  that a company’s  intrinsic  worth  results  from  the \\nfuture cash flows it can generate. The Morningstar Rating \\nfor stocks  identifies  stocks  trading  at a discount  or premi-\\num to their  intrinsic  worth—or  fair value  estimate,  in \\nMorningstar  terminology.  Five-star  stocks  sell for the \\nbiggest  risk adjusted  discount  to their  fair values,  where-\\nas 1-star stocks trade at premiums to their intrinsic worth.\\nFour key components  drive  the Morningstar  rating:  (1) our \\nassessment  of the firm’s  economic  moat,  (2) our estimate \\nof the stock’s  fair value,  (3) our uncertainty  around  that \\nfair value  estimate  and (4) the current  market  price.  This \\nprocess  ultimately  culminates  in our singlepoint  star rat-\\ning.\\n1. Economic Moat\\nThe concept  of an economic  moat  plays  a vital role not \\nonly in our qualitative  assessment  of a firm’s  long-term \\ninvestment  potential,  but also in the actual  calculation  of \\nour fair value  estimates.  An economic  moat  is a structural \\nfeature  that allows  a firm to sustain  excess  profits  over a long  period  of time.  We define  economic  profits  as re-\\nturns  on invested  capital  (or ROIC)  over and above  our es-\\ntimate  of a firm’s  cost of capital,  or weighted  average \\ncost of capital  (or WACC).  Without  a moat,  profits  are \\nmore  susceptible  to competition.  We have  identified  five \\nsources  of economic  moats:  intangible  assets,  switching \\ncosts, network effect, cost advantage, and efficient scale.\\nCompanies  with a narrow  moat  are those  we believe  are \\nmore  likely  than  not to achieve  normalized  excess  returns \\nfor at least  the next 10 years.  Wide-moat  companies  are \\nthose  in which  we have  very high confidence  that excess \\nreturns  will remain  for 10 years,  with excess  returns  more \\nlikely  than  not to remain  for at least  20 years.  The longer \\na firm generates  economic  profits,  the higher  its intrinsic \\nvalue.  We believe  low-quality,  no-moat  companies  will \\nsee their  normalized  returns  gravitate  toward  the firm’s \\ncost of capital more quickly than companies with moats.\\nWhen  considering  a company's  moat,  we also assess \\nwhether  there  is a substantial  threat  of value  destruction, \\nstemming  from  risks  related  to ESG,  industry  disruption, \\nfinancial  health,  or other  idiosyncratic  issues.  In this con-\\ntext, a risk is considered  potentially  value  destructive  if its \\noccurrence  would  eliminate  a firm’s  economic  profit  on a \\ncumulative  or midcycle  basis.  If we deem  the probability \\nof occurrence  sufficiently  high,  we would  not characterize \\nthe company as possessing an economic moat.\\nTo assess  the sustainability  of excess  profits,  analysts \\nperform  ongoing  assessments  of the moat  trend.  A firm’s \\nmoat  trend  is positive  in cases  where  we think  its sources \\nof competitive  advantage  are growing  stronger;  stable \\nwhere  we don’t  anticipate  changes  to competitive  ad-\\nvantages  over the next several  years;  or negative  when \\nwe see signs of deterioration.\\n2. Estimated Fair Value\\nCombining  our analysts’  financial  forecasts  with  the \\nfirm’s  economic  moat  helps  us assess  how long returns \\non invested  capital  are likely  to exceed  the firm’s  cost of \\ncapital.  Returns  of firms  with a wide  economic  moat  rat-\\ning are assumed  to fade  to the perpetuity  period  over a \\nlonger  period  of time  than  the returns  of narrow-moat \\nfirms,  and both  will fade  slower  than  no-moat  firms,  in-\\ncreasing our estimate of their intrinsic value.Our model is divided into three distinct stages:\\nStage I: Explicit Forecast\\nIn this stage,  which  can last five to 10 years,  analysts \\nmake  full financial  statement  forecasts,  including  items \\nsuch  as revenue,  profit  margins,  tax rates,  changes  in \\nworkingcapital  accounts,  and capital  spending.  Based  on \\nthese  projections,  we calculate  earnings  before  interest, \\nafter  taxes  (EBI)  and the net new investment  (NNI)  to de-\\nrive our annual free cash flow forecast.\\nStage II: Fade\\nThe second  stage  of our model  is the period  it will take \\nthe company’s  return  on new invested  capital—the  re-\\nturn on capital  of the next dollar  invested  (“RONIC”)—to \\ndecline  (or rise) to its cost of capital.  During  the Stage  II \\nperiod,  we use a formula  to approximate  cash  flows  in \\nlieu of explicitly  modeling  the income  statement,  balance \\nsheet,  and cash  flow statement  as we do in Stage  I. The \\nlength  of the second  stage  depends  on the strength  of \\nthe company’s  economic  moat.  We forecast  this period  to \\nlast anywhere  from  one year (for companies  with no eco-\\nnomic  moat)  to 10–15  years  or more  (for wide-moat  com-\\npanies).  During  this period,  cash  flows  are forecast  using \\nfour assumptions: an average growth rate for EBI over the \\nperiod,  a normalized  investment  rate,  average  return  on \\nnew invested  capital  (RONIC),  and the number  of years \\nuntil  perpetuity,  when  excess  returns  cease.  The invest-\\nment  rate and return  on new invested  capital  decline  un-\\ntil a perpetuity  value  is calculated.  In the case  of firms \\nthat do not earn their  cost of capital,  we assume  marginal \\nROICs  rise to the firm’s  cost of capital  (usually  attribut-\\nable  to less reinvestment),  and we may truncate  the \\nsecond stage.\\nStage III: Perpetuity\\nOnce  a company’s  marginal  ROIC  hits its cost of capital, \\nwe calculate  a continuing  value,  using  a standard  per-\\npetuity  formula.  At perpetuity,  we assume  that any \\ngrowth  or decline  or investment  in the business  neither \\ncreates  nor destroys  value  and that any new investment \\nprovides a return in line with estimated WACC.\\nBecause a dollar earned today is worth more than a dollar \\nearned  tomorrow,  we discount  our projections  of cash \\nflows  in stages  I, II, and III to arrive  at a total  present \\nvalue  of expected  future  cash  flows.  Because  we are \\nmodeling  free cash  flow to the firm—representing  cash \\navailable  to provide  a return  to all capital  providers—we \\ndiscount  future  cash  flows  using  the WACC,  which  is a \\nweighted  average  of the costs  of equity,  debt,  and pre-\\nferred  stock  (and  any other  funding  sources),  using  ex-\\npected  future  proportionate  long-term,  market-value \\nweights.\\n3. Uncertainty Around That Fair Value Estimate\",\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 25 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\nMorningstar Equity Research Star Rating Methodology\\n Morningstar’s  Uncertainty  Rating  is designed  to capture \\nthe range  of potential  outcomes  for a company’s  intrinsic \\nvalue.  This rating  is used  to assign  the margin  of safety \\nrequired  before  investing,  which  in turn explicitly  drives \\nour stock  star rating  system.  The Uncertainty  Rating  is \\naimed  at identifying  the confidence  we should  have  in as-\\nsigning a fair value estimate for a given stock. \\nOur Uncertainty  Rating  is meant  to take into account  any-\\nthing  that can increase  the potential  dispersion  of future \\noutcomes  for the intrinsic  value  of a company,  and any-\\nthing  that can affect  our ability  to accurately  predict \\nthese  outcomes.  The rating  begins  with a suggested  rat-\\ning produced  by a quantitative  process  based  on the trail-\\ning 12-month  standard  deviation  of daily  stock  returns. \\nAn analyst  overlay  is then  applied,  with  analysts  using \\nthe suggested  rating,  historical  rating  data,  and their  own \\nknowledge  of the company  to inform  them  as they make \\nthe final Uncertainty  Rating  decision.  Ultimately,  the rat-\\ning decision  rests  with the analyst.  Analysts  take into ac-\\ncount  many  characteristics  when  making  their  final  de-\\ncision,  including  cyclical  factors,  operational  and financial \\nfactors  such  as leverage,  company-specific  events,  ESG \\nrisks,  and anything  else that might  increase  the potential \\ndispersion  of future  outcomes  and our ability  to estimate \\nthose outcomes. \\nOur recommended  margin  of safety—the  discount  to fair \\nvalue  demanded  before  we’d  recommend  buying  or \\nselling  the stock—widens  as our uncertainty  of the es-\\ntimated  value  of the equity  increases.  The more  uncertain \\nwe are about  the potential  dispersion  of outcomes,  the \\ngreater the discount we require relative to our estimate of \\nthe value  of the firm before  we would  recommend  the \\npurchase  of the shares.  In addition,  the Uncertainty  Rat-\\ning provides  guidance  in portfolio  construction  based  on \\nrisk tolerance. \\nOur Uncertainty  Ratings  are: Low,  Medium,  High,  Very \\nHigh, and Extreme.\\nMargin of Safety\\nQualitative Analysis \\nUncertainty Ratings QQQQQ Rating QRating\\nLow 20% Discount 25% Premium\\nMedium 30% Discount 35% Premium\\nHigh 40% Discount 55% Premium\\nVery High 50% Discount 75% Premium\\nExtreme 75% Discount 300% Premium\\nOur uncertainty  rating  is based  on the interquartile  range, \\nor the middle  50% of potential  outcomes,  covering  the \\n25th percentile–75th  percentile.  This means  that when  a \\nstock  hits 5 stars,  we expect  there  is a 75% chance  that \\nthe intrinsic  value  of that stock  lies above  the current \\nmarket  price.  Similarly,  when  a stock  hits 1 star,  we ex-pect there  is a 75% chance  that the intrinsic  value  of that \\nstock lies below the current market price.\\n4. Market Price\\nThe market  prices  used  in this analysis  and noted  in the \\nreport  come  from  exchange  on which  the stock  is listed \\nwhich we believe is a reliable source.\\nFor more details about our methodology, please go to \\nhttps://shareholders.morningstar.com\\nMorningstar Star Rating for Stocks\\nOnce  we determine  the fair value  estimate  of a stock,  we \\ncompare  it with  the stock’s  current  market  price  on a \\ndaily  basis,  and the star rating  is automatically  re-calcu-\\nlated  at the market  close  on every  day the market  on \\nwhich  the stock  is listed  is open.  Our analysts  keep  close \\ntabs on the companies  they follow,  and, based  on thor-\\nough  and ongoing  analysis,  raise  or lower  their  fair value \\nestimates as warranted.\\nPlease  note,  there  is no predefined  distribution  of stars. \\nThat  is, the percentage  of stocks  that earn  5 stars  can \\nfluctuate  daily,  so the star ratings,  in the aggregate,  can \\nserve  as a gauge  of the broader  market’s  valuation. \\nWhen  there  are many  5-star  stocks,  the stock  market  as a \\nwhole  is more  undervalued,  in our opinion,  than  when \\nvery few companies garner our highest rating.\\nWe expect  that if our base-case  assumptions  are true the \\nmarket  price  will converge  on our fair value  estimate  over time  generally  within  three  years  (although  it is im-\\npossible  to predict  the exact  time frame  in which  market \\nprices may adjust).\\nOur star ratings  are guideposts  to a broad  audience  and \\nindividuals  must  consider  their  own specific  investment \\ngoals,  risk tolerance,  tax situation,  time horizon,  income \\nneeds,  and complete  investment  portfolio,  among  other \\nfactors.\\nThe Morningstar  Star Ratings  for stocks  are defined  be-\\nlow:\\nQQQQQ  We believe  appreciation  beyond  a fair risk ad-\\njusted  return  is highly  likely  over a multiyear  time frame. \\nScenario  analysis  developed  by our analysts  indicates \\nthat the current  market  price  represents  an excessively \\npessimistic  outlook,  limiting  downside  risk and maximiz-\\ning upside potential.\\nQQQQ We believe  appreciation  beyond  a fair risk-ad-\\njusted return is likely.\\nQQQ Indicates  our belief  that investors  are likely  to re-\\nceive  a fair risk-adjusted  return  (approximately  cost of \\nequity).\\nQQ We believe  investors  are likely  to receive  a less than \\nfair risk-adjusted return.\\nQ Indicates  a high probability  of undesirable  risk-adjus-\\nted returns  from  the current  market  price  over a multiyear ',\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 26 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\ntime  frame,  based  on our analysis.  Scenario  analysis  by \\nour analysts  indicates  that the market  is pricing  in an ex-\\ncessively  optimistic  outlook,  limiting  upside  potential  and \\nleaving the investor exposed to Capital loss.\\nOther Definitions\\nLast Price:  Price  of the stock  as of the close  of the mar-\\nket of the last trading day before date of the report.\\nCapital  Allocation  Rating:  Our Capital  Allocation  (or \\nStewardship)  Rating  represents  our assessment  of the \\nquality  of management’s  capital  allocation,  with particu-\\nlar emphasis  on the firm’s  balance  sheet,  investments, \\nand shareholder  distributions.  Analysts  consider  compan-\\nies’ investment  strategy  and valuation,  balance  sheet \\nmanagement,  and dividend  and share  buyback  policies. \\nCorporate  governance  factors  are only considered  if they \\nare likely  to materially  impact  shareholder  value,  though \\neither  the balance  sheet,  investment,  or shareholder  dis-\\ntributions.  Analysts  assign  one of three  ratings:  \"Exem-\\nplary\",  \"Standard\",  or \"Poor\".  Analysts  judge  Capital  Alloc-\\nation  from  an equity  holder’s  perspective.  Ratings  are de-\\ntermined  on a forward  looking  and absolute  basis.  The \\nStandard  rating  is most  common  as most  managers  will \\nexhibit  neither  exceptionally  strong  nor poor capital  alloc-\\nation.\\nCapital  Allocation  (or Stewardship)  analysis  published  pri-\\nor to Dec. 9, 2020,  was determined  using  a different  pro-\\ncess.  Beyond  investment  strategy,  financial  leverage,  and \\ndividend  and share  buyback  policies,  analysts  also con-\\nsidered  execution,  compensation,  related  party  transac-\\ntions, and accounting practices in the rating.\\nCapital  Allocation  Rating:  Our Capital  Allocation  (or \\nStewardship)  Rating  represents  our assessment  of the \\nquality  of management’s  capital  allocation,  with particu-\\nlar emphasis  on the firm’s  balance  sheet,  investments, \\nand shareholder  distributions.  Analysts  consider  compan-\\nies’ investment  strategy  and valuation,  balance  sheet \\nmanagement,  and dividend  and share  buyback  policies. \\nCorporate  governance  factors  are only considered  if they \\nare likely  to materially  impact  shareholder  value,  though \\neither  the balance  sheet,  investment,  or shareholder  dis-\\ntributions.  Analysts  assign  one of three  ratings:  \"Exem-\\nplary\",  \"Standard\",  or \"Poor\".  Analysts  judge  Capital  Alloc-\\nation  from  an equity  holder’s  perspective.  Ratings  are de-\\ntermined  on a forward  looking  and absolute  basis.  The \\nStandard  rating  is most  common  as most  managers  will \\nexhibit  neither  exceptionally  strong  nor poor capital  alloc-\\nation.\\nCapital  Allocation  (or Stewardship)  analysis  published  pri-\\nor to Dec. 9, 2020,  was determined  using  a different  pro-\\ncess.  Beyond  investment  strategy,  financial  leverage,  and \\ndividend  and share  buyback  policies,  analysts  also con-sidered  execution,  compensation,  related  party  transac-\\ntions, and accounting practices in the rating.\\nSustainalytics  ESG Risk Rating  Assessment: The ESG \\nRisk Rating  Assessment  is provided  by Sustainalytics;  a \\nMorningstar company.\\nSustainalytics’  ESG Risk Ratings  measure  the degree  to \\nwhich  company’s  economic  value  at risk is driven  by en-\\nvironment, social and governance (ESG) factors.\\nSustainalytics  analyzes  over 1,300  data points  to assess  a \\ncompany’s  exposure  to and management  of ESG risks.  In \\nother  words,  ESG Risk Ratings  measures  a company’s  un-\\nmanaged  ESG Risks  represented  as a quantitative  score. \\nUnmanaged  Risk is measured  on an open-ended  scale \\nstarting  at zero (no risk) with  lower  scores  representing \\nless unmanaged  risk and, for 95% of cases,  the unman-\\naged ESG Risk score is below 50.\\nBased  on their  quantitative  scores,  companies  are \\ngrouped  into one of five Risk Categories  (negligible,  low, \\nmedium,  high,  severe).  These  risk categories  are absolute, \\nmeaning  that a ‘high  risk’ assessment  reflects  a compar-\\nable degree  of unmanaged  ESG risk across  all subindus-\\ntries covered.\\nThe ESG Risk Rating  Assessment  is a visual  representa-\\ntion of Sustainalytics  ESG Risk Categories  on a 1 to 5 \\nscale.  Companies  with  Negligible  Risk = 5 Globes,  Low \\nRisk = 4, Medium  Risk = 3 Globes,  High  Risk = 2 Globes, \\nSevere  Risk = 1 Globe.  For more  information,  please  visit \\nsustainalytics.com/esg-ratings/\\nRatings  should  not be used  as the sole basis  in evaluating \\na company  or security.  Ratings  involve  unknown  risks and \\nuncertainties  which  may cause  our expectations  not to \\noccur  or to differ  significantly  from  what  was expected \\nand should  not be considered  an offer  or solicitation  to \\nbuy or sell a security.\\nRisk Warning\\nPlease  note  that investments  in securities  are subject  to \\nmarket  and other  risks and there  is no assurance  or guar-\\nantee  that the intended  investment  objectives  will be \\nachieved.  Past performance  of a security  may or may not \\nbe sustained  in future  and is no indication  of future  per-\\nformance.  A security  investment  return  and an investor’s \\nprincipal  value  will fluctuate  so that,  when  redeemed,  an \\ninvestor’s  shares  may be worth  more  or less than  their \\noriginal  cost.  A security’s  current  investment  performance \\nmay be lower  or higher  than  the investment  performance \\nnoted  within  the report.  Morningstar’s  Uncertainty  Rating \\nserves  as a useful  data  point  with  respect  to sensitivity \\nanalysis  of the assumptions  used  in our determining  a fair \\nvalue price.General Disclosure\\nUnless  otherwise  provided  in a separate  agreement,  re-\\ncipients  accessing  this report  may only use it in the coun-\\ntry in which  the Morningstar  distributor  is based.  Unless \\nstated  otherwise,  the original  distributor  of the report  is \\nMorningstar  Research  Services  LLC, a U.S.A.  domiciled \\nfinancial institution.\\nThis report  is for informational  purposes  only and has no \\nregard  to the specific  investment  objectives,  financial \\nsituation  or particular  needs  of any specific  recipient.  This \\npublication  is intended  to provide  information  to assist  in-\\nstitutional  investors  in making  their  own investment  de-\\ncisions,  not to provide  investment  advice  to any specific \\ninvestor.  Therefore,  investments  discussed  and recom-\\nmendations  made  herein  may not be suitable  for all in-\\nvestors:  recipients  must  exercise  their  own independent \\njudgment  as to the suitability  of such  investments  and re-\\ncommendations  in the light  of their  own investment  ob-\\njectives,  experience,  taxation  status  and financial  posi-\\ntion.\\nThe information,  data,  analyses  and opinions  presented \\nherein  are not warranted  to be accurate,  correct,  com-\\nplete  or timely.  Unless  otherwise  provided  in a separate \\nagreement,  neither  Morningstar,  Inc. or the Equity  Re-\\nsearch  Group  represents  that the report  contents  meet  all \\nof the presentation  and/or  disclosure  standards  applic-\\nable in the jurisdiction the recipient is located.\\nExcept  as otherwise  required  by law or provided  for in a \\nseparate  agreement,  the analyst,  Morningstar,  Inc. and \\nthe Equity  Research  Group  and their  officers,  directors \\nand employees  shall  not be responsible  or liable  for any \\ntrading  decisions,  damages  or other  losses  resulting  from, \\nor related  to, the information,  data,  analyses  or opinions \\nwithin  the report.  The Equity  Research  Group  encourages \\nrecipients  recipients  of this report  to read  all relevant  is-\\nsue documents  (e.g.,  prospectus)  pertaining  to the secur-\\nity concerned,  including  without  limitation,  information \\nrelevant  to its investment  objectives,  risks,  and costs  be-\\nfore making  an in vestment  decision  and when  deemed \\nnecessary,  to seek  the advice  of a legal,  tax, and/or  ac-\\ncounting professional.\\nThe Report  and its contents  are not directed  to, or inten-\\nded for distribution  to or use by, any person  or entity  who \\nis a citizen  or resident  of or located  in any locality,  state, \\ncountry  or other  jurisdiction  where  such  distribution,  pub-\\nlication,  availability  or use would  be contrary  to law or \\nregulation  or which  would  subject  Morningstar,  Inc. or its \\naffiliates  to any registration  or licensing  requirements  in \\nsuch jurisdiction.',\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 27 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\nWhere  this report  is made  available  in a language  other \\nthan  English  and in the case  of inconsistencies  between \\nthe English  and translated  versions  of the report,  the Eng-\\nlish version  will control  and supersede  any ambiguities \\nassociated  with  any part or section  of a report  that has \\nbeen  issued  in a foreign  language.  Neither  the analyst, \\nMorningstar,  Inc., or the Equity  Research  Group  guaran-\\ntees the accuracy of the translations.\\nThis report  may be distributed  in certain  localities,  coun-\\ntries  and/or  jurisdictions  (“Territories”)  by independent \\nthird  parties  or independent  intermediaries  and/or  distrib-\\nutors  (“Distributors”).  Such  Distributors  are not acting  as \\nagents  or representatives  of the analyst,  Morningstar, \\nInc. or the Equity  Research  Group.  In Territories  where  a \\nDistributor  distributes  our report,  the Distributor  is solely \\nresponsible  for complying  with all applicable  regulations, \\nlaws,  rules,  circulars,  codes  and guidelines  established  by \\nlocal  and/or  regional  regulatory  bodies,  including  laws  in \\nconnection  with  the distribution  third-party  research  re-\\nports.\\nConflicts of Interest\\nuNo interests  are held by the analyst  with respect  to the \\nsecurity subject of this investment research report.\\nuMorningstar,  Inc. may hold a long position  in the se-\\ncurity  subject  of this investment  research  report  that \\nexceeds  0.5%  of the total  issued  share  capital  of the \\nsecurity.  To determine  if such  is the case,  please  click \\nhttp://msi.morningstar.com  and http://mdi.morning-\\nstar.com\\nuAnalysts’  compensation  is derived  from  Morningstar, \\nInc.’s  overall  earnings  and consists  of salary,  bonus \\nand in some cases restricted stock.\\nuNeither  Morningstar,  Inc. or the Equity  Research  Group \\nreceives  commissions  for providing  research  nor do \\nthey charge companies to be rated.\\nuNeither  Morningstar,  Inc. or the Equity  Research  Group \\nis a market  maker  or a liquidity  provider  of the security \\nnoted within this report.\\nuNeither  Morningstar,  Inc. or the Equity  Research  Group \\nhas been  a lead manager  or co-lead  manager  over the \\nprevious  12-months  of any publicly  disclosed  offer  of \\nfinancial instruments of the issuer.\\nuMorningstar,  Inc.’s  investment  management  group \\ndoes  have  arrangements  with  financial  institutions  to \\nprovide portfolio management/investment advice some \\nof which  an analyst  may issue  investment  research  re-\\nports  on. However,  analysts  do not have  authority  over \\nMorningstar’s  investment  management  group’s  busi-\\nness  arrangements  nor allow  employees  from  the in-\\nvestment  management  group  to participate  or influ-\\nence the analysis or opinion prepared by them.\\nMorningstar,  Inc. is a publicly  traded  company  (Ticker \\nSymbol:  MORN)  and thus a financial  institution  the se-\\ncurity  of which  is the subject  of this report  may own umore  than  5% of Morningstar,  Inc.’s  total  outstanding \\nshares.  Please  access  Morningstar,  Inc.’s  proxy  state-\\nment,  “Security  Ownership  of Certain  Beneficial  Own-\\ners and  Management”  section  https://\\nshareholders.morningstar.com/investor-relations/fin-\\nancials/sec-filings/default.aspx\\nuMorningstar,  Inc. may provide  the product  issuer  or its \\nrelated  entities  with services  or products  for a fee and \\non an arms’  length  basis  including  software  products \\nand licenses,  research  and consulting  services,  data \\nservices,  licenses  to republish  our ratings  and research \\nin their  promotional  material,  event  sponsorship  and \\nwebsite advertising.\\nFurther  information  on Morningstar,  Inc.’s  conflict  of in-\\nterest  policies  is available  from  https://\\nshareholders.morningstar.com  Also,  please  note analysts \\nare subject  to the CFA Institute’s  Code  of Ethics  and \\nStandards of Professional Conduct.\\nFor a list of securities  which  the Equity  Research  Group \\ncurrently  covers  and provides  written  analysis  on please \\ncontact  your local  Morningstar  office.  In addition,  for his-\\ntorical  analysis  of securities  covered,  including  their  fair \\nvalue estimate, please contact your local office.\\nFor Recipients  in Australia:  This Report  has been  issued \\nand distributed  in Australia  by Morningstar  Australasia \\nPty Ltd (ABN:  95 090 665 544; ASFL:  240892 ). Morning-\\nstar Australasia  Pty Ltd is the provider  of the general  ad-\\nvice (‘the Service’) and takes responsibility for the produc-\\ntion of this report.  The Service  is provided  through  the re-\\nsearch of investment products.\\nTo the extent  the Report  contains  general  advice  it has \\nbeen  prepared  without  reference  to an investor’s  object-\\nives,  financial  situation  or needs.  Investors  should  con-\\nsider  the advice  in light  of these  matters  and, if applic-\\nable,  the relevant  Product  Disclosure  Statement  before \\nmaking  any decision  to invest.  Refer  to our Financial  Ser-\\nvices  Guide  (FSG)  for more  information  at http://\\nwww.morningstar.com.au/fsg.pdf\\nFor Recipients  in New  Zealand:  This report  has been  is-\\nsued  and distributed  by Morningstar  Australasia  Pty Ltd \\nand/or  Morningstar  Research  Ltd (together  ‘Morning-\\nstar’).  Morningstar  is the provider  of the regulated  finan-\\ncial advice  and takes  responsibility  for the production  of \\nthis report.  To the extent  the report  contains  regulated \\nfinancial advice it has been prepared without reference to \\nan investor’s  objectives,  financial  situation  or needs.  In-\\nvestors  should  consider  the advice  in light  of these  mat-\\nters and,  if applicable,  the relevant  Product  Disclosure \\nStatement  before  making  any decision  to invest.  Refer  to \\nour Financial  Advice  Provider  Disclosure  Statement  at \\nwww.morningstar.com.au/s/fapds.pdf  for more  informa-tion.\\nFor Recipients  in Hong  Kong:  The Report  is distributed \\nby Morningstar  Investment  Management  Asia Limited, \\nwhich  is regulated  by the Hong  Kong  Securities  and Fu-\\ntures  Commission  to provide  services  to professional  in-\\nvestors  only.  Neither  Morningstar  Investment  Manage-\\nment  Asia Limited,  nor its representatives,  are acting  or \\nwill be deemed  to be acting  as an investment  profession-\\nal to any recipients  of this information  unless  expressly \\nagreed  to by Morningstar  Investment  Management  Asia \\nLimited. For enquiries regarding this research, please con-\\ntact a Morningstar  Investment  Management  Asia Limited \\nLicensed  Representative  at https://shareholders.morning-\\nstar.com\\nFor recipients  in India:  This Investment  Research  is is-\\nsued  by Morningstar  Investment  Adviser  India  Private \\nLimited.  Morningstar  Investment  Adviser  India  Private \\nLimited  is registered  with  the Securities  and Exchange \\nBoard  of India  (Registration  number  INA000001357 ) and \\nprovides  investment  advice  and research.  Morningstar  In-\\nvestment  Adviser  India  Private  Limited  has not been  the \\nsubject of any disciplinary action by  SEBI  or any other leg-\\nal/regulatory  body.  Morningstar  Investment  Adviser  India \\nPrivate  Limited  is a wholly  owned  subsidiary  of Morning-\\nstar Investment  Management  LLC. In India,  Morningstar \\nInvestment  Adviser  India  Private  Limited  has one asso-\\nciate,  Morningstar  India  Private  Limited,  which  provides \\ndata related services, financial data analysis and software \\ndevelopment.  The Research  Analyst  has not served  as an \\nofficer,  director  or employee  of the fund  company  within \\nthe last 12 months,  nor has it or its associates  engaged  in \\nmarket making activity for the fund company.\\n*The  Conflicts  of Interest  disclosure  above  also applies  to \\nrelatives  and associates  of Manager  Research  Analysts  in \\nIndia  # The Conflicts  of Interest  disclosure  above  also ap-\\nplies  to associates  of Manager  Research  Analysts  in In-\\ndia. The terms  and conditions  on which  Morningstar  In-\\nvestment  Adviser  India  Private  Limited  offers  Investment \\nResearch  to clients,  varies  from  client  to client,  and are \\ndetailed in the respective client agreement.\\nFor recipients  in Japan:  The Report  is distributed  by Ib-\\nbotson  Associates  Japan,  Inc., which  is regulated  by Fin-\\nancial  Services  Agency.  Neither  Ibbotson  Associates  Ja-\\npan,  Inc., nor its representatives,  are acting  or will be \\ndeemed  to be acting  as an investment  professional  to any \\nrecipients of this information.\\nFor recipients  in Singapore:  For Institutional  Investor \\naudiences  only.  Recipients  of this report  should  contact \\ntheir  financial  professional  in Singapore  in relation  to this \\nreport.  Morningstar,  Inc., and its affiliates,  relies  on cer-\\ntain exemptions  (Financial  Advisers  Regulations,  Section ',\n",
       "│   │   'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 28 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\n32B and 32C) to provide  its investment  research  to recipi-\\nents in Singapore.'\n",
       "│   ]\n",
       "}\n",
       "
\n" ], "text/plain": [ "\u001b[1m{\u001b[0m\n", "\u001b[2;32m│ \u001b[0m\u001b[32m'message'\u001b[0m: \u001b[32m'Successfully uploaded AMZN_MS_CompanyReport_Annual_20230203.pdf'\u001b[0m,\n", "\u001b[2;32m│ \u001b[0m\u001b[32m'AMZN_MS_CompanyReport_Annual_20230203.pdf'\u001b[0m: \u001b[1m[\u001b[0m\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 1 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nDan Romanoff\\nSenior Equity Analyst\\nMorningstar\\n+1 312 244 7816\\ndan.romanoff@morningstar.com\\nContents\\nAnalyst Note \u001b[0m\u001b[32m(\u001b[0m\u001b[32m3 Feb 2023\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nBusiness Description\\nBusiness Strategy & Outlook \u001b[0m\u001b[32m(\u001b[0m\u001b[32m3 Feb 2023\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nBulls Say / Bears Say \u001b[0m\u001b[32m(\u001b[0m\u001b[32m3 Feb 2023\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nFair Value and Profit Drivers \u001b[0m\u001b[32m(\u001b[0m\u001b[32m3 Feb 2023\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nEconomic Moat \u001b[0m\u001b[32m(\u001b[0m\u001b[32m3 Jun 2022\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nMoat Trend \u001b[0m\u001b[32m(\u001b[0m\u001b[32m3 Jun 2022\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nRisk and Uncertainty \u001b[0m\u001b[32m(\u001b[0m\u001b[32m3 Jun 2022\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nFinancial Strength \u001b[0m\u001b[32m(\u001b[0m\u001b[32m3 Feb 2023\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nCapital Allocation \u001b[0m\u001b[32m(\u001b[0m\u001b[32m3 Feb 2023\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nFinancials\\nRecent Analyst Notes\\nResearch Methodology for Valuing \\nCompanies\\nImportant Disclosure\\nThe conduct of Morningstar’s analysts is governed by Code of \\nEthics/Code of Conduct Policy, Personal Security Trading Policy \\n\u001b[0m\u001b[32m(\u001b[0m\u001b[32mor an equivalent of\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, and Investment Research Policy. For \\ninformation regarding conflicts of interest, please visit: http://\\nglobal.morningstar.com/equitydisclosures.\\nThe primary analyst covering this company does not own its \\nstock.\\nReporting Currency: USD | Trading Currency: USD\\nCurrency amounts expressed with \"$\" are in U.S. dollars \\n\u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m unless otherwise denoted.\\n1The ESG Risk Rating Assessment is a representation of \\nSustainalytics’ ESG Risk Rating.Solid Results for Amazon With Continued AWS Deceleration in \\nJanuary; Outlook Light; FVE Cut to $137\\nAnalyst Note Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nWide-moat Amazon reported solid fourth-quarter results, but provided a first-quarter outlook that was shy of our \\nexpectations. E-commerce was generally solid while AWS continues to decelerate, including through January. \\nWe see real progress being made on the operational side, which was masked by impairment charges. We still \\nforesee healthy long-term growth driven by e-commerce proliferation, Amazon Web Services, or AWS, and \\nadvertising, but the near term remains a work-in-progress with macro issues weighing on 2023, albeit with \\nimprovement in 2024. We cut our estimates on both the top and bottom lines for 2023, while leaving the rest of \\nour estimates largely unchanged. In turn, we cut our fair value estimate to $137 per share from $150. Still, we \\nsee shares as attractive.\\n \\nFourth-quarter revenue grew 9% year over year as reported, or 12% in constant currency, to $149.2 billion, \\ncompared with guidance of $140 billion to $148 billion. Currency improved during the quarter, which eased \\npressure on revenue growth. Compared with our model, online stores was light, while third-party seller services \\nwas well ahead, and other segments were in line to slightly ahead. From a retail perspective \u001b[0m\u001b[32m(\u001b[0m\u001b[32mall year over year, \\nas reported\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, revenue from online stores declined 2%, physical stores improved 6%, third-party seller services \\ngrew 20%, and subscription services increased 13%. On the latter point, we’re impressed that Rings of Power \\nhelped draw in new Prime members.\\n \\nThe two most critical segments, AWS and advertising, grew 20% and 19% over the year-ago period, respectively. \\nManagement sees good customer additions within AWS and notes positive conversations about moving new \\nFinancial Summary and Key Statistics \\nActual Forecast\\n2021 2022 2023 2024\\nRevenue \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 469,822 513,983 545,336 607,352\\nRevenue Growth % 21.7 9.4 6.1 11.4\\nOperating Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 24,879 12,248 11,747 22,593\\nOperating Margin % 5.3 2.4 2.2 3.7\\nAdjusted EBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 71,932 73,330 82,561 98,872\\nAdjusted EBITDA Margin % 15.3 14.3 15.1 16.3\\nEarnings Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mDiluted\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 3.24 -0.27 0.94 1.75\\nAdjusted Earnings Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mDiluted\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 3.24 -0.27 0.94 1.75\\nAdjusted EPS Growth % 55.0 -108.2 -454.0 85.7\\nPrice/Earnings 51.5 -311.1 120.1 64.5\\nPrice/Book 12.4 5.9 7.5 6.8\\nEV/EBITDA 23.0 23.6 14.8 12.4\\nFree Cash Flow Yield % -0.9 -1.0 2.2 3.6\\nSource: Morningstar Valuation Model. Data as of 02 Feb 2023.'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m\"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 2 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nworkloads to the cloud. However, enterprise customers continue to optimize cloud spending, consistent with \\ncomments from other cloud providers. Management believes this will continue for at least a couple quarters, \\nnoting that AWS growth was in the midteens year over year for the month of January.\\nDespite further deceleration this quarter, AWS remains critical to Amazon's overall revenue growth in the near \\nterm and long-term. Like Microsoft noted earlier this week, Amazon is in discussions with customers to help \\nthem optimize spending and consumption on public cloud services. Management noted that new customers are \\nbeing added and new workloads are planned, but nonetheless expects depressed revenue expansion to persist \\nat least through midyear. Microsoft also expects a lag between customer optimization efforts and new workload \\nmigration.\\n \\nWe think we are in the early innings of cloud migration, while management disclosed that it believes 90% to 95% \\nof enterprise workloads remain on-premises. Strong backlog growth gives us comfort that the runway for AWS \\nremains long. We also think cloud migration is an obvious cost-cutting move for enterprise customers, which we \\nthink puts a floor under growth even if the economy formally descends into a recession. We continue to believe \\nthat the migration to the public cloud is an enormous opportunity and remains in the early stages of evolution, \\nwith AWS being the clear leader.\\n \\nOperating profit came in at $2.7 billion, compared with guidance of $0.0 billion to $4.0 billion, producing an \\noperating margin of 1.8%, compared with 2.5% a year ago. Impairment charges stemming from self-insurance \\nliabilities, impairments of property and equipment and operating leases, and estimated severance costs totaled \\n$2.7 billion. In other words, normalized operating profit was $5.4 billion, which was nicely ahead of the top end \\nof guidance. Amazon continues to make progress on its excess expenses, particularly in improvements to the \\nproductivity of the fulfillment network and transportation. Management plans to continue to optimize operations \\nthroughout 2023.\\n \\nWhile guidance was slightly shy of our model, we are not surprised given the macro environment. However, we \\nthink the continued deceleration in January AWS will be unnerving to investors. Amazon’s first-quarter outlook \\nincludes $121 billion to $126 billion in revenue and operating income from breakeven to $4.0 billion, compared \\nwith FactSet consensus estimates of $125.5 billion and $4.0 billion, respectively. Guidance assumes 210 basis \\npoints of pressure from currency impacts. Included in operating profit guidance is $640 million of severance \\ncosts. which renders profitability guidance better than it appears at first glance. We see a path to continuous \\nmargin improvement over time, even as uncertain macro conditions weigh in the near term.\\nBusiness Strategy & Outlook Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nAmazon dominates its served markets, notably e-commerce and cloud services. It benefits from numerous \\ncompetitive advantages and has emerged as the clear e-commerce leader thanks to its size and scale, which \\nyield an unmatched selection of low-priced goods for consumers. The secular drift toward e-commerce continues Sector Industry\\nt Consumer Cyclical Internet Retail\\nBusiness Description\\nAmazon is a leading online retailer and one \\nof the highest-grossing e-commerce \\naggregators, with $386 billion in net sales \\nand approximately $578 billion in estimated \\nphysical/digital online gross merchandise \\nvolume in 2021. Retail-related revenue \\nrepresents approximately 80% of the total, \\nfollowed by Amazon Web Services' cloud \\ncomputing, storage, database, and other \\nofferings \u001b[0m\u001b[32m(\u001b[0m\u001b[32m10%-15%\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, advertising services \\n\u001b[0m\u001b[32m(\u001b[0m\u001b[32m5%\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, and other. International segments \\nconstitute 25%-30% of Amazon's non-AWS \\nsales, led by Germany, the United Kingdom, \\nand Japan.\"\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 3 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nunabated with the company continuing to grind out market share gains despite its size. Prime ties Amazon’s e-\\ncommerce efforts together and provides a steady stream of high-margin recurring revenue from customers who \\npurchase more frequently from Amazon’s properties. In return, consumers get one-day shipping on millions of \\nitems, exclusive video content, and other services; this results in a powerful virtuous circle where customers and \\nsellers attract one another. Kindle and other devices further bolster the ecosystem by helping attract new \\ncustomers while making the value proposition irresistible in retaining existing customers. Through Amazon Web \\nServices, Amazon is also a clear leader in public cloud services.\\nAdditionally, the firm’s advertising business is already large and continues to scale, thus offering an attractive \\noption for marketers looking to access a vast audience with a variety of proprietary data points about those very \\nconsumers. AWS and advertising growth should continue to outpace e-commerce growth. We expect these areas \\nto be the main growth drivers over the next five years. This is critical, as each of these segments drives higher \\nmargins than the corporate average, which in turn should allow both operating profit and EPS to outgrow \\nrevenue as margins continue to expand.\\nFrom a retail perspective, we expect continued innovation to help drive further share gains in a post-lockdown \\nworld. We also look for continued penetration into categories such as groceries and luxury goods that have not \\npreviously translated into the same level of success as other retail categories. We also see technology \\nadvancements in AWS and a bigger push to service enterprise customers as helping to maintain the company’s \\nlead there. Overall, we see strong revenue and free cash flow growth for years to come.\\nBulls Say Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nuAmazon is the clear leader in e-commerce and enjoys unrivaled scale to continue to invest in growth \\nopportunities and drive the very best customer experience. \\n \\nuHigh-margin advertising and AWS are growing faster than the corporate average, which should continue to \\nboost profitability over the next several years.\\nuAmazon Prime memberships help attract and retain customers who spend more with Amazon; this reinforces a \\npowerful network effect while bringing in recurring and high-margin revenue.\\nBears Say Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nuRegulatory concerns are rising for large technology firms, including Amazon. Further, the firm may face \\nincreasing regulatory and compliance issues as it expands internationally.\\nuNew investments, notably in fulfillment, delivery, and AWS, should damp free cash flow growth. Also, Amazon’s \\npenetration into some countries might be harder than in the U.S. due to inferior logistic networks.\\nuAmazon may not be as successful in penetrating new retail categories, such as luxury goods, due to consumer \\npreferences and an improved e-commerce experience from larger retailers.\\nFair Value and Profit Drivers Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nOur fair value estimate for Amazon is $137 per share, which implies a 2022 enterprise value to sales multiple of 3 '\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m\"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 4 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\ntimes and a 1.7% free cash flow yield. We think multiples are a little less meaningful for Amazon given the \\nongoing heavy investment and rapid scaling that depresses financial performance. However, we expect the \\ncompany to significantly grow its free cash flow as it matures.\\nOver the long term, we expect e-commerce to continue to take share from brick-and-mortar retailers. We further \\nexpect Amazon to gain share online. We believe that over the medium term, COVID-19 pulled forward some \\ndemand by changing consumer behavior and better penetrating some retail categories, such as groceries, \\npharmacy, and luxury goods, that previously had not gained as much traction online. We think Prime \\nsubscriptions and the accompanying benefits, combined with selection, price, and convenience continue to drive \\nthe retail story. We also see international as being a longer-term opportunity within retail. We model total retail-\\nrelated revenue growing at a 7% CAGR over the next five years.\\nWe believe the critical growth drivers over the medium term will be AWS and advertising. Since these segments \\nearn materially higher margins than the rest of the business, we also expect them to drive margins higher over \\ntime. Over the next five years, we project AWS revenue growing at a 18% CAGR and advertising revenue growing \\nat a 17% CAGR. In total, Amazon should grow at a 10% CAGR through 2027. We model GAAP operating margin \\nexpanding from 2% \u001b[0m\u001b[32m(\u001b[0m\u001b[32mactual\u001b[0m\u001b[32m)\u001b[0m\u001b[32m in 2021 to 6% in 2027 as the company grows into its expanded footprint and \\noptimizes its substantial investment in transportation.\\nEconomic Moat Dan Romanoff, Senior Equity Analyst, 3 Jun 2022\\nWe assign a wide moat rating to Amazon based on network effects, cost advantages, intangible assets, and \\nswitching costs. Amazon has been disrupting the traditional retail industry for more than two decades while also \\nemerging as the leading infrastructure-as-a-service provider via Amazon Web Services. This disruption has been \\nembraced by consumers and has driven change across the entire industry as traditional retailers have invested \\nheavily in technology in order to keep pace. COVID-19 has accelerated change, and given the company's \\ntechnological prowess, massive scale, and relationship with consumers, we think Amazon has widened its lead, \\nwhich we believe will result in economic returns well in excess of its cost of capital for years to come.\\nWe believe Amazon’s retail business has a wide moat stemming from network effects associated with its \\nmarketplace, where more buyers and sellers continually attract more buyers and sellers; a cost advantage tied to \\npurchasing power, logistics, vertical integration \u001b[0m\u001b[32m(\u001b[0m\u001b[32mproprietary brands, owned delivery, and so on\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, and a negative \\ncash conversion cycle; and intangible assets associated with technology and branding. We also believe AWS is a \\nwide-moat business, thanks to high customer switching costs; a cost advantage associated with economies of \\nscale where few competitors can keep up with Amazon’s investment pace; intangible assets arising from \\nsemiconductor and facility development; and a network effect associated with a marketplace for software \\ncreated to make AWS work better. We also would assign Amazon’s burgeoning advertising business a narrow \\nmoat based on intangible assets from its proprietary data on hundreds of millions of users and a network effect \\nagain focusing on buyers and sellers meeting in the largest available venues. We believe that the wide moat for \\nAmazon’s entire business is greater than the sum of its parts; we prefer to analyze Amazon’s moat on the whole, \"\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m\"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 5 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nas the company's segments reinforce one another and returns result in an unrivaled consumer experience.\\nTogether, we believe Amazon’s retail business enjoys a wide moat supported by cost advantages, intangible \\nassets, and network effects. We assess the moat around Amazon’s retail business based on a combination of \\nonline stores, third-party seller services, subscription services, and physical stores, as we find it challenging to \\nthink about durable competitive advantages for each of these segments in isolation. Given its massive scale, \\nAmazon has created cost advantages including buying power, economies of scope, route density, and research \\nand development. From a total gross merchandise value perspective, with approximately $580 billion in 2021, it \\nfinally surpassed Walmart. Similarly, Amazon is the largest online retailer and is an order of magnitude larger \\nthan Walmart and 4 times larger than Shopify, assuming we classify Shopify as a demand aggregator. \\nAdditionally, the company has become more vertically integrated over time and most recently has built out its \\nown transportation network. Size dictates certain scales of efficiency, but we think Amazon is the definition of \\noperational excellence. \\nThese advantages are related and reinforce one another in a virtuous circle. Low prices and an unmatched \\nselection have come to define the company in consumer’s minds, giving rise to intangible assets from branding \\nand technology \u001b[0m\u001b[32m(\u001b[0m\u001b[32msearch capabilities and recommendation engine\u001b[0m\u001b[32m)\u001b[0m\u001b[32m. Product searches are more likely to begin on \\nAmazon at this point than they are Google. Amazon has become the only demand aggregator at scale in the U.S. \\nbecause of its wide selection, intelligent recommendation algorithms, low prices, and convenience, which \\ncombine into a powerful business model.\\nWe also believe Amazon’s retail business benefits from network effects. The sheer number of consumers \\nshopping on Amazon makes it attractive to third party sellers, while the marketplace expands the selection \\navailable to shoppers and makes Amazon a more attractive online destination for consumers. In fact, 50%-55% of \\ntotal goods sold by Amazon are through its third-party marketplace. At the heart of third-party seller services is \\nthe commission Amazon collects from the independent seller. However, these services also include Fulfillment by \\nAmazon, distribution facility storage, shipping, payment processing, and other related items.\\nTo improve the consumer experience and more tightly tie users to Amazon, the company has moved increasingly \\ninto content. Consumers can now have Prime Video, Music Unlimited, Kindle Unlimited, Prime Gaming, and other \\nsimilar subscription services. The company even produces original content for Prime Video to help reinforce the \\nnotion that consumers can get anything they need from Amazon. We view the Kindle, Echo, Fire, and other \\nAmazon original devices as interesting on their own merits, but think the underlying point is to once again draw \\nin more consumers to Amazon’s retail properties and engage those customers that are already within the \\necosystem. Amazon’s hardware helps to enable Amazon’s services. The Kindle, for example, dovetails perfectly \\nwith Kindle Unlimited, which for a $9.99 monthly subscription, allows users to read from a selection of more than \\none million book titles. The company even offers a direct-to-Kindle book publishing service. \\nThe common thread that weaves throughout Amazon’s retail business is Amazon Prime, which for $139 per year \\nallows users unlimited free shipping on millions of stock-keeping units, including same-day or one-day shipping \"\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 6 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\non many items, access to Prime Video and Prime Music, and a variety of other benefits. We view Prime \\nsubscriptions and the differentiated user experience they offer as critical to attracting and retaining customers. \\nPrime memberships generate high cash flow that can be reinvested in further improving the user experience on \\nthe technology, content, and delivery fronts. Prime customers are very sticky and tend to purchase from Amazon \\nmore frequently and across more retail categories. We think content combined with Prime subscriptions actually \\nbuild a switching cost that consumers would need to overcome, although these switching costs might not last for \\ndecades in order to warrant it as a moat source.\\nAdvertising is tangentially related to Amazon’s retail operations in that it takes place on Amazon’s own online \\nproperties. Advertising is growing rapidly and is likely the segment with the highest operating margins in \\nAmazon’s portfolio, likely in excess of 30%, which is would be directionally comparable to margins earned by \\nFacebook when it was a similarly sized business \u001b[0m\u001b[32m(\u001b[0m\u001b[32mother was $21 billion in revenue in 2020, compared with $18 \\nbillion in revenue for Facebook in 2015\u001b[0m\u001b[32m)\u001b[0m\u001b[32m. We believe advertising dollars flow to where the eyeballs are and where \\ninformation is known about the online user, which fits in very well with Amazon’s strengths. We therefore expect \\nadvertising to grow rapidly over the next several years and continue to boost the company’s overall profitability. \\nLooking at advertising in isolation, we would likely give it a narrow moat rating based on intangible assets arising \\nfrom proprietary technology \u001b[0m\u001b[32m(\u001b[0m\u001b[32mdata\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, and network effects, although assigning a moat rating here is difficult \\nbecause Amazon doesn’t disclose much about this business. That said, we can see Amazon’s advertising \\nbecoming a wide-moat business as it becomes more established and more details are disclosed. We think \\nAmazon’s advertising business is attractive to advertisers because there is proprietary information about the \\nconsumers and real-time data about when they are searching for a particular product, and Amazon already \\nenjoys substantial traffic. We expect this business to continue to grow rapidly and offer an attractive alternative \\nto platforms from social network and internet search providers.\\nAmazon Web Services enjoys a wide moat supported by switching costs, network effects, intangible assets, and \\ncost advantages. Amazon was a pioneer in public cloud infrastructure as a service and platform as a service and \\nretains a substantial lead over its closest rival, Microsoft. AWS has driven profitability for the entire company; \\nalthough it represents 10%-15% of revenue, it generates 60%-65% of total operating profit dollars for Amazon. \\nWe also expect AWS to remain a key growth driver for the company over the next decade.\\nAWS differs from the company’s e-commerce operations in that it is enterprise-facing rather than consumer-\\nfacing. Enterprise customers rely on AWS for core IT infrastructure, which represents significant switching costs \\nin terms of the time and expense of integrating applications with core software elements, such as the database, \\nand dedicates a user to a specific set of software development tools. Ultimately, the operational risks to changing \\nmission-critical technology infrastructure is high, which is why core elements such as ERP systems and cloud \\nproviders are rarely changed.\\nFurther, we believe it is cheaper initially for companies to move workloads to the cloud, as there are fewer up-\\nfront costs and a lower bar to clear for maintenance and administration. Additionally, Amazon has devoted '\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 7 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nsignificant R&D resources to adding advanced features to the platform. Along those lines, AWS offers scale \\nadvantages to clients in that it is cheaper and faster to set up IT infrastructure in the cloud compared with \\nundertaking the same effort independently. Customers also benefit from the ability to scale up compute power \\nfor burst requirements, paying for only what they need and having it available effectively on-demand. We have \\nseen some of the largest technology companies in the world simply fail to keep pace with Amazon’s massive \\ninvestments in IaaS over the years, and AWS’ cost advantage over its rivals is obvious. Those firms struggle to \\ncompete in a meaningful way against AWS.\\nAmazon has amassed significant technology and process knowledge, which we believe is an intangible asset for \\nthe firm as a whole and also for AWS. These assets could also apply to the logistics aspect of the retail business. \\nThe company expanded its distribution network by roughly 50% in 2020 while managing through a global \\npandemic. Given the size of its footprint, this is a monumental achievement and speaks to the company’s ability \\nto quickly plan, construct, and expand facilities based on specific needs. The knowledge base to quickly and \\nefficiently bring massive server farms on line for AWS is similarly impressive and only comes from the experience \\nof previously building hyperscale data centers. Additionally, the firm designs its own semiconductors, which are \\nused to power its server arrays, and also developed proprietary robotic automation technology used in its \\nfulfillment centers.\\nAs with other large software companies, we see a network effect within AWS’ ecosystem for third-party \\nsoftware, although we view this as more of secondary moat source. The large ecosystem of AWS users has \\nbenefited from the software development efforts of those same users, as they turn around and offer applications \\nwritten on AWS for AWS users. Thus, users help attract other users to AWS. We see Microsoft and Salesforce in \\nparticular as the best comparable examples in software of creating network effects. \\nWe think network effects, intangible assets, cost advantages, and switching combine to form a powerful moat for \\nall of Amazon. We think many of these areas reinforce one another and see little difficulty in Amazon continuing \\nto deliver returns on invested capital well in excess of its cost of capital over the long term.\\nMoat Trend Dan Romanoff, Senior Equity Analyst, 3 Jun 2022\\nWe assign Amazon a stable moat trend rating. From an e-commerce perspective, we believe the trend skews \\npositive because of secular shifts to online commerce from traditional brick-and-mortar retailers. After more than \\n20 years of online shopping, this is not necessarily sneaking up on investors. However, new or less penetrated \\nretail categories can help fuel this long-term trend. We highlight groceries, apparel, pharmacy, and furniture as \\nsome examples of areas that are gaining traction for online commerce—and for Amazon—from a small base. \\nOnline grocery shopping, in particular, has seen an uptick in demand due to COVID-19; we think there will be a \\nlasting impact, while luxury items are likely still a long-term project but an opportunity for Amazon nonetheless. \\nOn the flip side, we see larger retailers getting their e-commerce houses in order and foresee greater e-\\ncommerce competition over time. We also see “buy online, pick up in store” and contactless curbside pickup as \\ninnovations being made by physical stores. While the selection, low cost, and Prime member benefits would push '\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 8 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nus to declare a positive moat trend, the general competition for shopping attention and discretionary dollars \\nkeeps our moat trend rating stable for cost advantages, network effects, and intangible assets. We do not view \\nAmazon’s expansion into physical retail, either via its own stores or via Whole Foods, as a sign that Amazon’s \\nretail moat is skewing positive. \\nWe believe the moat trend for AWS is also stable. AWS has grown rapidly and is the clear public cloud leader. \\nThat said, its largest competitor, Microsoft’s Azure, has narrowed the gap over the last several years in terms of \\nfeatures, services, and sheer size. We view this more as the natural evolution of the competitive landscape and \\nnot as shortcomings of AWS. Indeed, the company has clearly continued to invest in AWS and add to the service. \\nWe continue to believe that AWS will be a core growth engine for Amazon’s revenue and profitability over the \\nnext decade, as the public cloud market opportunity remains substantial.\\nGiven the lack of disclosure surrounding the advertising business, we assign a stable trend to this segment. \\nHowever, given its rapid rise, we believe more optimism is possibly warranted. As advertising dollars continue to \\nshift to online channels, Amazon has clearly benefited in a meaningful way. The company has added to its offsite \\ncapabilities, while the onsite inventory remains the key driver, as advertisers value eyeballs and data. We believe \\nthat Amazon’s advertising business is growing approximately as fast as Facebook revenue was growing when \\nFacebook was the size of Amazon’s other business and is growing considerably faster than Google was at the \\nsame scale. Overall, we see clear share gains in online advertising, which we think are a result of years of \\ninvesting in and building out the firm’s advertising platform, but the opaque disclosures around the business \\nkeep us from definitively identifying a positive moat trend around its proprietary data and technology.\\nRisk and Uncertainty Dan Romanoff, Senior Equity Analyst, 3 Jun 2022\\nWe believe that the uncertainty for Amazon is high and that despite being an e-commerce leader, the company \\nfaces a variety of risks.\\nAmazon must protect its leading online retailing position, which can be challenging as consumer preferences \\nchange, especially post-COVID-19 \u001b[0m\u001b[32m(\u001b[0m\u001b[32mas consumers may revert to prior behaviors\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, and traditional retailers bolster \\ntheir online presence. Maintaining an e-commerce edge has pushed the company to make investments in \\nnontraditional areas, such as producing content for Prime Video and building out its own transportation network. \\nSimilarly, the company must also maintain an attractive value proposition for its third-party sellers. Some of these \\ninvestment areas have raised investor questions in the past, and we expect management to continue to invest \\naccording to its strategy, despite periodic margin pressure from increased spending.\\nThe company must also continue to invest in new offerings. AWS, transportation, and physical stores \u001b[0m\u001b[32m(\u001b[0m\u001b[32mboth \\nAmazon branded and Whole Foods\u001b[0m\u001b[32m)\u001b[0m\u001b[32m are three notable areas of investment. These decisions require capital \\nallocation and management focus and may play out over a period of years rather than quarters.\\nContinued international expansion will likely require similar investment and management attention but will also \\nincrease exposure to different regulatory environments. Some countries have instituted or may institute \\nprotectionist policies. Even domestically over the last several years, lawmakers from both parties have '\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m\"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 9 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nincreasingly focused on the amount of market power large technology companies have accrued. Antitrust, data \\nprivacy, and section 230 have been repeatedly invoked.\\nFrom an environmental, social, and governance perspective, data breaches and service outages are a concern for \\nany type of cloud service provider. As a retailer, Amazon has personal information for hundreds of millions of \\nconsumers around the world, while AWS hosts proprietary mission-critical data for enterprises.\\nFinancial Strength Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nWe believe Amazon is financially sound. Revenue is growing rapidly, margins are expanding, the company has \\nunrivaled scale, and the balance sheet is in great shape. In our view, the marketplace will remain attractive to \\nthird-party sellers, as Prime continues to tightly weave consumers to Amazon. We also see AWS and advertising \\ndriving overall corporate growth and continued margin expansion.\\nAs of Dec. 31, 2022, Amazon had $70.0 billion in cash and marketable securities, offset by $67.2 billion in debt. \\nWe also expect free cash flow generation, which suffered during COVID-19 as the company invested heavily in \\nfacility expansion, content creation, and its transportation network, to return to more normal levels over the next \\ncouple of years.\\nGiven that the company is still in a rapid growth and heavy investment phase, we do not expect it to pay \\ndividends or repurchase shares. The company is acquisitive, but given its size, we characterize all acquisitions \\nthroughout its history as tuck-in, including the largest deal of $14 billion for Whole Foods in 2017 and the $8 \\nbillion MGM deal in 2022. We expect the focus to remain on growth, including heavy investment for AWS and \\ndelivery.\\nCapital Allocation Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nWe assign Amazon an Exemplary capital allocation rating. The rating reflects our assessments of a sound balance \\nsheet, exceptional investments, and appropriate shareholder distributions. We think reinvestment in the business \\nis most likely to be the key driver of total shareholder returns and is therefore appropriately prioritized over other \\ncapital returns such as dividends and buybacks, which Amazon does not offer. \\nThe balance sheet is sound with a net cash position. We expect the balance sheet to remain sound as the \\ncompany has typically maintained a conservative position and has historically generated substantial free cash \\nflow from AWS and advertising to fund growth throughout the business. \\nManagement’s record of investing in areas that investors were initially skeptical of but were ultimately vindicated \\nhas been remarkable. Jeff Bezos founded the company in 1994 and led it until he stepped down as CEO in 2021. \\nHe was succeeded by Andy Jassy, former CEO of AWS. Bezos remains actively involved with the company as \\nexecutive chair of the board, and Jassy has been at the company for 23 years and was a driving force behind the \\nfoundation and growth of AWS. We think Jassy will carry on Bezos' focus on the customer and continue to \\nexplore areas that were ignored or not yet defined. Thus far, the results have been breathtaking. From humble \\nbeginnings, Bezos built Amazon into one of the largest companies in the world. On the e-commerce side, the \"\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 10 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\ncompany has evolved from selling books to selling everything, including groceries, delivering purchases the same \\nday they are ordered, and moving into retail categories that were long thought to be beyond the reach of online \\nshopping. The stickiness of Prime members, the financial stability of subscriptions, the tech world shakeup via \\nAWS, the Kindle—the innovation has been dramatic, and shareholders have been rewarded along the way. \\nUltimately, we assess investment as exceptional. \\nAmazon’s capital deployment strategy centers around reinvesting in the business and making generally small \\ntuck-in acquisitions. The company does not pay a dividend or repurchase shares, nor do we expect it to over the \\nnext several years. K'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 11 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nPrice vs. Fair Value \\n050100150200Fair Value: 137.00\\n3 Feb 2023 05:12, UTC\\nLast Close: 112.91\\nOver Valued\\nUnder Valued\\n2018 2019 2020 2021 2022 YTD\\n0.68 0.80 0.90 0.81 0.56 0.82 Price/Fair Value\\n28.43 23.03 76.26 2.38 -49.62 34.42 Total Return %\\nMorningstar Rating\\nCompetitors\\nAmazon.com Inc AMZN Microsoft Corp MSFT Walmart Inc WMT eBay Inc EBAY\\nFair Value\\n137.00\\nUncertainty : High\\nLast Close\\n112.91\\nFair Value\\n310.00\\nUncertainty : Medium\\nLast Close\\n264.60\\nFair Value\\n144.00\\nUncertainty : Medium\\nLast Close\\n143.62\\nFair Value\\n60.00\\nUncertainty : High\\nLast Close\\n51.66\\nEconomic Moat\\n Wide\\n Wide\\n Wide\\n Narrow\\nMoat Trend Stable Stable Stable Negative\\nCurrency USD USD USD USD\\nFair Value 137.00 3 Feb 2023 05:12, UTC 310.00 3 Feb 2023 05:12, UTC1 144.00 3 Feb 2023 05:12, UTC2 60.00 3 Feb 2023 05:12, UTC3\\n1-Star Price 212.35 418.50 194.40 93.00\\n5-Star Price 82.20 217.00 100.80 36.00\\nAssessment Under Valued 2 Feb 2023 Under Valued 2 Feb 2023 Fairly Valued 2 Feb 2023 Under Valued 2 Feb 2023\\nMorningstar Rating QQQQ3 Feb 2023 05:14, UTC QQQQ2 Feb 2023 22:29, UTC QQQ2 Feb 2023 22:29, UTC QQQQ2 Feb 2023 22:29, UTC\\nAnalyst Dan Romanoff, Senior Equity Analyst Dan Romanoff, Senior Equity Analyst Zain Akbari, Equity Analyst Sean Dunlop, Equity Analyst\\nCapital Allocation Exemplary Exemplary Standard Standard\\nPrice/Fair Value 0.82 0.85 1.00 0.86\\nPrice/Sales 2.24 9.72 0.66 3.01\\nPrice/Book 7.89 10.76 5.36 5.78\\nPrice/Earnings — 29.40 44.19 —\\nDividend Yield — 0.96% 1.56% 1.70%\\nMarket Cap 1,072.70 Bil 1,881.42 Bil 390.15 Bil 27.35 Bil\\n52-Week Range 81.43—170.83 213.43—315.95 117.27—160.77 35.92—60.66\\nInvestment Style Large Growth Large Growth Large Value Mid Core'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 12 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nMorningstar Valuation Model Summary\\nFinancials as of 02 Feb 2023 Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nRevenue \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 386,064 469,822 513,983 545,336 607,352 673,289 743,075 817,464\\nOperating Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 22,899 24,879 12,248 11,747 22,593 31,173 40,795 51,909\\nEBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 48,150 59,175 53,709 58,929 72,548 82,747 95,782 109,458\\nAdjusted EBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 57,358 71,932 73,330 82,561 98,872 100,798 115,392 130,688\\nNet Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 21,331 33,364 -2,722 9,797 18,329 25,372 33,167 42,364\\nAdjusted Net Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 21,331 33,364 -2,722 9,797 18,329 25,372 33,167 42,364\\nFree Cash Flow To The Firm \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 18,358 -35,416 -31,177 22,568 13,990 25,176 34,251 44,055\\nWeighted Average Diluted Shares Outstanding \u001b[0m\u001b[32m(\u001b[0m\u001b[32mBil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 10 10 10 10 11 11 11 11\\nEarnings Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mDiluted\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2.09 3.24 -0.27 0.94 1.75 2.42 3.16 4.03\\nAdjusted Earnings Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mDiluted\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2.09 3.24 -0.27 0.94 1.75 2.42 3.16 4.03\\nDividends Per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00\\nMargins & Returns as of 02 Feb 2023 Actual Forecast\\n3 Year Avg 2020 2021 2022 2023 2024 2025 2026 2027 5 Year Avg\\nOperating Margin % 4.5 5.9 5.3 2.4 2.2 3.7 4.6 5.5 6.4 4.5\\nEBITDA Margin % — 12.5 12.6 10.5 10.8 12.0 12.3 12.9 13.4 —\\nAdjusted EBITDA Margin % 14.8 14.9 15.3 14.3 15.1 16.3 15.0 15.5 16.0 15.6\\nNet Margin % 4.0 5.5 7.1 -0.5 1.8 3.0 3.8 4.5 5.2 3.7\\nAdjusted Net Margin % 4.0 5.5 7.1 -0.5 1.8 3.0 3.8 4.5 5.2 3.7\\nFree Cash Flow To The Firm Margin % -2.9 4.8 -7.5 -6.1 4.1 2.3 3.7 4.6 5.4 4.0\\nGrowth & Ratios as of 02 Feb 2023 Actual Forecast\\n3 Year CAGR 2020 2021 2022 2023 2024 2025 2026 2027 5 Year CAGR\\nRevenue Growth % 22.4 37.6 21.7 9.4 6.1 11.4 10.9 10.4 10.0 9.7\\nOperating Income Growth % -5.6 57.5 8.6 -50.8 -4.1 92.3 38.0 30.9 27.2 33.5\\nEBITDA Growth % 0.0 — — — — — — — — 0.0\\nAdjusted EBITDA Growth % 19.3 32.8 25.4 1.9 12.6 19.8 2.0 14.5 13.3 12.3\\nEarnings Per Share Growth % -161.4 — — — — — — — — —\\nAdjusted Earnings Per Share Growth % -161.4 81.8 55.0 -108.2 -454.0 85.7 38.4 30.7 27.7 —\\nValuation as of 02 Feb 2023 Actual Forecast\\n2020 2021 2022 2023 2024 2025 2026 2027\\nPrice/Earnings 77.9 51.5 -311.1 120.1 64.5 46.7 35.7 28.0\\nPrice/Sales 2.4 3.5 3.3 2.1 1.9 1.7 1.6 1.4\\nPrice/Book 17.8 12.4 5.9 7.5 6.8 5.9 5.1 4.3\\nPrice/Cash Flow 35.5 -111.2 -100.5 46.6 28.2 26.2 21.0 17.3\\nEV/EBITDA 16.3 23.0 23.6 14.8 12.4 12.1 10.6 9.3\\nEV/EBIT 40.9 66.4 141.4 104.0 54.1 39.2 29.9 23.5\\nDividend Yield % — — — — — — — —\\nDividend Payout % 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0\\nFree Cash Flow Yield % 2.8 -0.9 -1.0 2.2 3.6 3.8 4.8 5.8\\nOperating Performance / Profitability as of 02 Feb 2023 Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nROA % 7.8 9.0 -0.6 2.1 3.6 4.6 5.5 6.3\\nROE % 27.4 28.8 -1.9 6.5 11.1 13.6 15.4 16.7\\nROIC % 30.3 25.6 12.3 13.6 15.8 14.2 15.0 16.4'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 13 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nFinancial Leverage Actual Forecast\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nDebt/Capital % 25.4 26.1 31.5 30.3 27.7 23.8 19.8 17.3\\nAssets/Equity 3.4 3.0 3.2 3.1 3.0 2.9 2.7 2.6\\nNet Debt/EBITDA -1.1 -0.8 -0.1 -0.4 -0.6 -0.8 -1.1 -1.3\\nTotal Debt/EBITDA 0.6 0.7 0.9 0.8 0.7 0.6 0.5 0.4\\nEBITDA/ Net Interest Expense 34.8 39.8 31.0 33.6 40.7 42.8 51.8 63.9\\nKey Valuation Drivers as of 02 Feb 2023\\nCost of Equity % 9.0\\nPre-Tax Cost of Debt % 5.5\\nWeighted Average Cost of Capital % 8.8\\nLong-Run Tax Rate % 21.0\\nStage II EBI Growth Rate % 8.4\\nStage II Investment Rate % -47.2\\nPerpetuity Year 20\\nAdditional estimates and scenarios available for download at https://pitchbook.com/. Discounted Cash Flow Valuation as of 02 Feb 2023\\nUSD Mil\\nPresent Value Stage I 317,062\\nPresent Value Stage II 601,448\\nPresent Value Stage III 494,586\\nTotal Firm Value 1,413,096\\nCash and Equivalents 70,026\\nDebt -67,150\\nOther Adjustments 1\\nEquity Value 1,415,973\\nProjected Diluted Shares 10\\nFair Value per Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 137.00'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 14 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nIncome Statement \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Actual Forecast \\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nRevenue \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m386,064 469,822 513,983 545,336 607,352 673,289 743,075 817,464\\nCost of Goods Sold \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 233,307 272,344 288,831 313,568 348,013 383,775 421,695 461,867\\nGross Profit \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 152,757 197,478 225,152 231,768 259,339 289,514 321,380 355,597\\nSelling, General, Administrative & Other Expenses \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 129,932 172,537 211,641 219,530 236,260 257,870 280,139 303,279\\nAdvertising & Marketing Expenses — — — — — — — —\\nResearch & Development — — — — — — — —\\nDepreciation & Amortization \u001b[0m\u001b[32m(\u001b[0m\u001b[32mif reported separately\u001b[0m\u001b[32m)\u001b[0m\u001b[32m — — — — — — — —\\nAdjusted Operating Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 22,899 24,879 12,248 11,747 22,593 31,173 40,795 51,909\\nFinancial Non-Cash \u001b[0m\u001b[32m(\u001b[0m\u001b[32mGains\u001b[0m\u001b[32m)\u001b[0m\u001b[32m/Losses \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 0 0 0 0 0 0 0 0\\nIrregular Cash \u001b[0m\u001b[32m(\u001b[0m\u001b[32mGains\u001b[0m\u001b[32m)\u001b[0m\u001b[32m/Losses \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 0 0 0 0 0 0 0 0\\nOperating Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 22,899 24,879 12,248 11,747 22,593 31,173 40,795 51,909\\nNet Interest Expense \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m -1,279 -13,272 18,184 -654 -607 -943 -1,189 -1,717\\nIncome Tax Expense \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2,863 4,791 -3,217 2,604 4,872 6,744 8,817 11,261\\nAfter-Tax Items \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 0 0 0 0 0 0 0 0\\n\u001b[0m\u001b[32m(\u001b[0m\u001b[32mMinority Interest\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 16 4 -3 0 0 0 0 0\\nNet Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 21,331 33,364 -2,722 9,797 18,329 25,372 33,167 42,364\\nAdjusted Net Income \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 21,331 33,364 -2,722 9,797 18,329 25,372 33,167 42,364\\nWeighted Average Diluted Shares Outstanding \u001b[0m\u001b[32m(\u001b[0m\u001b[32mBil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 10 10 10 10 11 11 11 11\\nDiluted Earnings Per Share 2.09 3.24 -0.27 0.94 1.75 2.42 3.16 4.03\\nDiluted Adjusted Earnings Per Share 2.09 3.24 -0.27 0.94 1.75 2.42 3.16 4.03\\nDividends Per Common Share \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00\\nEBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 48,150 59,175 53,709 58,929 72,548 82,747 95,782 109,458\\nAdjusted EBITDA \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 57,358 71,932 73,330 82,561 98,872 100,798 115,392 130,688'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m\"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 15 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nKey Cash Flow Items \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Actual Forecast as of 2 Feb\\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nCash from Working Capital \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 31,549 -1,313 1,893 5,171 6,951 9,542 10,110 10,739\\n\u001b[0m\u001b[32m(\u001b[0m\u001b[32mCapital Expenditures\u001b[0m\u001b[32m)\u001b[0m\u001b[32m \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m -40,141 -61,053 -63,645 -61,078 -60,735 -60,596 -63,161 -65,397\\nDepreciation \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 25,251 34,296 41,461 46,419 49,196 50,901 54,319 56,896\\nAmortization \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m — — — 763 759 673 669 654\\nNet New \u001b[0m\u001b[32m(\u001b[0m\u001b[32mInvestment\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, Organic \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m -1,409 -46,368 -43,070 13,524 -3,618 876 2,354 3,393\\n\u001b[0m\u001b[32m(\u001b[0m\u001b[32mPurchases\u001b[0m\u001b[32m)\u001b[0m\u001b[32m/Sales of Companies & Assets \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2,771 3,672 -2,992 -1,000 -1,000 -1,000 -1,000 -1,000\\nNet New \u001b[0m\u001b[32m(\u001b[0m\u001b[32mInvestment\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, Total \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 1,362 -42,696 -46,062 12,524 -4,618 -124 1,354 2,393\\nOther Non-Cash Items, From Cash Flows \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m -2,653 -14,169 17,426 763 759 673 669 654\\nFree Cash Flow to the Firm \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 18,358 -35,416 -31,177 22,568 13,990 25,176 34,251 44,055\\nBalance Sheet \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Actual Forecast \\nFiscal Year, ends 31 Dec 2020 2021 2022 2023 2024 2025 2026 2027\\nAssets \\nCash and Equivalents \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 42,122 36,220 53,888 77,628 90,887 112,619 142,768 188,179\\nInventory \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 23,795 32,640 34,405 37,800 41,952 46,263 50,834 55,677\\nAccounts Receivable \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 24,542 32,891 42,360 37,352 41,599 46,116 50,896 55,991\\nNet Property, Plant and Equipment \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 113,114 160,281 186,715 201,384 212,933 222,639 231,491 240,003\\nGoodwill \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 15,017 15,371 20,288 20,538 20,788 21,038 21,288 21,538\\nOther Intangibles \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 0 0 0 -63 -123 -96 -65 -19\\nOther Operating Assets \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 60,331 83,317 108,881 95,434 103,250 111,093 118,892 126,707\\nNon-Operating Assets \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 0 0 0 0 0 0 0 0\\nTotal Assets \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 321,195 420,549 462,675 486,209 527,425 575,810 632,242 704,214\\nLiabilities \\nAccounts Payable \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 72,539 78,664 79,600 88,057 95,346 105,144 115,533 126,539\\nDebt \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 31,816 48,744 67,150 67,804 66,593 62,404 57,362 57,362\\nOther Operating Liabilities \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 123,436 154,896 169,882 174,507 191,316 208,720 226,638 245,239\\nNon-Operating Liabilities \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 0 0 0 0 0 0 0 0\\nTotal Liabilities \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 227,791 282,304 316,632 330,368 353,255 376,268 399,533 429,140\\nEquity \\nShareholders' Equity \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 93,404 138,245 146,043 155,841 174,171 199,542 232,709 275,074\\nMinority Interest \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 0 0 0 0 0 0 0 0\\nTotal Equity \u001b[0m\u001b[32m(\u001b[0m\u001b[32mMil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 93,404 138,245 146,043 155,841 174,171 199,542 232,709 275,074\"\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m\"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 16 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nManagement & Ownership\\nManagement Activity as of 31 Mar 2022\\nName Position Share Held Report Date* Insider Activity\\nWendell P. Weeks Independent Director 1,935 31 Mar 2022 380\\nAndrew R. Jassy Director, President and Chief Executive Officer 1,988,380 31 Dec 2022 302,569\\nJeffrey P. Bezos Executive Chairman of the Board 992,633,688 31 Dec 2022 4,586,455\\nPatricia Q. Stonesifer Independent Director 46,220 31 Dec 2022 14,299\\nShelley L. Reynolds Vice President, Worldwide Controller, and Principal Accounting Officer 129,200 31 Dec 2022 22,953\\nJamie S. Gorelick Independent Director 28,836 31 Dec 2022 5,756\\nJonathan J. Rubinstein Lead Independent Director 124,880 31 Dec 2022 14,299\\nEdith W. Cooper Independent Director 6,180 31 Dec 2022 3,800\\nDavid A. Zapolsky Senior Vice President, General Counsel and Secretary 133,220 31 Dec 2022 105,042\\nBrian T. Olsavsky Senior Vice President and Chief Financial Officer 148,260 31 Dec 2022 109,733\\nFund Ownership as of 31 Jan 2023\\nTop Owners % of Shares Held % of Fund Assets Change \u001b[0m\u001b[32m(\u001b[0m\u001b[32mk\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Portfolio Date\\nVanguard US Total Market Shares ETF 2.59 2.04 2,696,043 31 Dec 2022\\nVanguard Total Stock Market Index Fund 2.59 1.92 2,696,043 31 Dec 2022\\nVanguard Instl Ttl Stck Mkt Idx Tr 2.53 2.76 3,585,594 30 Sep 2022\\nVanguard 500 Index Fund 2.01 2.31 2,076,427 31 Dec 2022\\nInvesco QQQ Trust 1.00 6.72 -461,136 31 Jan 2023\\nConcentrated Holders\\nAmazon \u001b[0m\u001b[32m(\u001b[0m\u001b[32mAMZN\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Yield Shares Prps ETF 0.00 — 235 31 Jan 2023\\nTarpon US Equities I FIA IE 0.00 27.02 42 30 Sep 2022\\niShares S&P 500 Cnsmr Discr Sect ETF 0.01 25.15 0 30 Jan 2023\\nProFund VP Consumer Services 0.00 24.94 382 30 Sep 2022\\nConsumer Discret Sel Sect SPDR® Fd 0.34 24.83 -125,349 31 Jan 2023\\nInstitutional Transactions as of 31 Jan 2023\\nTop 5 Buyers % of Shares Held % of Fund Assets Shrs Bought/Sold \u001b[0m\u001b[32m(\u001b[0m\u001b[32mk\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Portfolio Date\\nFMR Inc 2.96 3.56 16,008,843 30 Sep 2022\\nT. Rowe Price Investment Management,Inc. 0.15 1.42 15,772,420 30 Sep 2022\\nWellington Management Company LLP 0.72 1.77 14,685,084 30 Sep 2022\\nVanguard Group Inc 6.88 2.33 12,456,995 30 Sep 2022\\nSusquehanna International Group, LLP 0.24 0.73 9,597,517 30 Sep 2022\\nTop 5 Sellers\\nT. Rowe Price Associates, Inc. 2.77 5.24 -29,369,893 30 Sep 2022\\nAllianz Asset Management AG 0.07 1.69 -10,580,148 30 Sep 2022\\nHHG PLC 0.32 2.73 -6,377,103 30 Sep 2022\\nJPMorgan Chase & Co 0.99 1.63 -6,254,171 30 Sep 2022\\nBlackRock Inc 5.71 2.24 -5,331,976 30 Sep 2022\\n*Represents the date on which the owner's name, position, and common shares held were reported by the holder or issuer.\"\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 17 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nComparable Company Analysis These companies are chosen by the analyst and the data are shown by nearest calendar year in descending market capitalization order.\\nValuation Analysis as of 02 Feb 2023 Price/Earnings EV/EBITDA Price/Free Cash Flow Price/Book Price/Sales \\nCompany/Ticker 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nMicrosoft Corp MSFT 28.5 24.6 22.0 17.8 15.8 14.2 27.5 23.0 20.4 9.6 8.0 6.7 9.4 8.5 7.7\\nWalmart Inc WMT 23.4 21.3 19.3 12.1 11.5 10.8 25.8 26.3 23.1 5.1 4.9 4.6 0.6 0.6 0.6\\neBay Inc EBAY 14.0 12.6 12.3 8.7 10.3 10.4 17.9 18.3 13.6 4.5 9.8 8.6 3.8 2.9 3.0\\nAverage 22.0 19.5 17.9 12.9 12.5 11.8 23.7 22.5 19.0 6.4 7.6 6.6 4.6 4.0 3.8\\nAmazon.com Inc AMZN -311.1 120.1 64.5 23.6 14.8 12.4 -100.0 46.5 28.2 5.9 7.5 6.8 3.3 2.1 1.9\\nReturns Analysis as of 02 Feb 2023 ROIC % Adjusted ROIC % Return on Equity % Return on Assets % Dividend Yield % \\nCompany/Ticker 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nMicrosoft Corp MSFT 33.2 34.2 35.4 46.1 48.4 50.8 37.3 35.2 33.0 17.9 18.3 18.0 1.0 1.1 1.2\\nWalmart Inc WMT 15.0 15.7 16.3 12.1 12.7 13.3 12.5 23.2 24.4 4.1 7.1 7.6 1.6 1.7 1.9\\neBay Inc EBAY 31.3 84.2 34.9 94.6 280.2 109.1 204.0 -23.4 56.5 59.3 -6.8 9.9 1.1 1.7 1.9\\nAverage 26.5 44.7 28.9 50.9 113.8 57.7 84.6 11.7 38.0 27.1 6.2 11.8 1.2 1.5 1.7\\nAmazon.com Inc AMZN 12.3 13.6 15.8 11.4 12.6 14.7 -1.9 6.5 11.1 -0.6 2.1 3.6 — — —\\nGrowth Analysis as of 02 Feb 2023 Revenue Growth % EBIT Growth % EPS Growth % FCF Growth % DPS Growth % \\nCompany/Ticker 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nMicrosoft Corp MSFT 5.5 10.4 10.7 2.7 12.7 11.7 1.0 15.5 12.0 122.2 -8.7 38.7 8.1 7.5 6.9\\nWalmart Inc WMT 6.0 3.3 3.2 -6.6 7.1 7.8 -5.0 9.7 10.9 -24.4 2.3 13.5 1.8 9.5 12.5\\neBay Inc EBAY 1.5 -6.6 -3.2 7.8 -17.5 -1.1 -28.8 -13.6 2.4 113.2 -58.7 -59.3 12.5 22.2 11.5\\nAverage 4.3 2.4 3.6 1.3 0.8 6.1 -10.9 3.9 8.4 70.3 -21.7 -2.4 7.5 13.1 10.3\\nAmazon.com Inc AMZN 9.4 6.1 11.4 -50.8 -4.1 92.3 -108.2 -454.0 85.7 -12.0 -172.4 -38.0 — — —\\nProfitability Analysis as of 02 Feb 2023 Gross Margin % EBITDA Margin % Operating Margin % Net Margin % FCF Margin % \\nCompany/Ticker 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nMicrosoft Corp MSFT 68.5 68.6 69.0 51.9 52.8 53.2 40.9 41.8 42.2 33.2 34.5 34.7 34.2 37.0 37.8\\nWalmart Inc WMT 24.3 25.0 25.1 6.0 6.1 6.3 4.0 4.2 4.3 2.8 2.9 3.0 2.5 2.4 2.6\\neBay Inc EBAY 74.6 72.7 72.9 37.7 32.7 33.5 28.1 24.8 25.3 30.2 23.5 22.3 21.2 15.8 21.9\\nAverage 55.8 55.4 55.7 31.9 30.5 31.0 24.3 23.6 23.9 22.1 20.3 20.0 19.3 18.4 20.8\\nAmazon.com Inc AMZN 43.8 42.5 42.7 14.3 15.1 16.3 2.4 2.2 3.7 -0.5 1.8 3.0 -3.3 4.5 6.7\\nLeverage Analysis as of 02 Feb 2023 Debt/Equity % Debt/Total Cap % EBITDA/Net Int. Exp Total Debt/EBITDA Asset/Equity \\nCompany/Ticker 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nMicrosoft Corp MSFT 21.4 17.3 13.8 17.6 14.7 12.1 -559.4 — NM 0.4 0.3 0.3 2.0 1.9 1.8\\nWalmart Inc WMT 58.9 57.4 55.7 37.1 36.5 35.8 20.4 20.0 21.3 1.2 1.2 1.1 3.2 3.2 3.2\\neBay Inc EBAY 92.9 268.6 248.7 48.2 72.9 71.3 14.6 13.6 13.0 2.3 2.5 2.4 2.7 5.9 5.6\\nAverage 57.7 114.4 106.1 34.3 41.4 39.7 -174.8 16.8 17.1 1.3 1.3 1.3 2.6 3.7 3.5\\nAmazon.com Inc AMZN 46.0 43.5 38.2 31.5 30.3 27.7 31.0 33.6 40.7 0.9 0.8 0.7 3.2 3.1 3.0\\nLiquidity Analysis as of 02 Feb 2023 Cash per Share Current Ratio Quick Ratio Cash/Short-Term Debt Payout Ratio % \\nCompany/Ticker 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2022 2023\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 2024\u001b[0m\u001b[32m(\u001b[0m\u001b[32mE\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\nMicrosoft Corp MSFT 18.9 22.4 28.8 2.1 2.2 2.4 2.1 2.2 2.4 62.8 55.5 60.5 28.8 26.8 25.6\\nWalmart Inc WMT 5.1 4.5 4.2 0.9 0.9 0.8 0.3 0.2 0.2 — — — 61.2 36.5 37.0\\neBay Inc EBAY 2.4 0.9 0.4 2.0 0.8 0.8 2.0 0.8 0.8 1.2 0.4 0.2 3.5 -33.0 29.1\\nAverage 7.9 8.8 10.5 1.5 1.2 1.3 1.3 1.0 1.1 16.0 22.5 21.9 23.4 7.6 22.9\\nAmazon.com Inc AMZN 5.3 7.4 8.7 0.9 1.0 1.1 0.7 0.8 0.8 — 34.0 27.1 0.0 0.0 0.0'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 18 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nCompetitors Price vs. Fair Value\\nMicrosoft Corp MSFT\\n0100200300400Fair Value: 310.00\\n25 Jan 2023 04:36, UTC\\nLast Close: 264.60\\nOver Valued\\nUnder Valued\\n2018 2019 2020 2021 2022 YTD\\n0.78 1.02 0.95 0.97 0.75 0.85 Price/Fair Value\\n20.75 57.12 42.37 52.24 -27.94 10.33 Total Return %\\nMorningstar Rating\\nTotal Return % as of 2 Feb 2023. Last Close as of 2 Feb 2023. Fair Value as of 25 Jan 2023 04:36, UTC.\\nWalmart Inc WMT\\n050100150200Fair Value: 144.00\\n31 Jan 2023 09:02, UTC\\nLast Close: 143.62\\nOver Valued\\nUnder Valued\\n2018 2019 2020 2021 2022 YTD\\n0.99 1.13 1.16 1.00 1.02 1.00 Price/Fair Value\\n-3.56 29.86 23.12 1.90 -0.46 1.29 Total Return %\\nMorningstar Rating\\nTotal Return % as of 2 Feb 2023. Last Close as of 2 Feb 2023. Fair Value as of 31 Jan 2023 09:02, UTC.'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 19 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nCompetitors Price vs. Fair Value \u001b[0m\u001b[32m(\u001b[0m\u001b[32mContinued\u001b[0m\u001b[32m)\u001b[0m\u001b[32m\\neBay Inc EBAY\\n050100150200Fair Value: 60.00\\n6 Nov 2022 22:59, UTC\\nLast Close: 51.66\\nOver Valued\\nUnder Valued\\n2018 2019 2020 2021 2022 YTD\\n0.78 0.95 0.91 0.92 0.69 0.86 Price/Fair Value\\n-25.62 30.64 40.93 33.77 -36.32 24.57 Total Return %\\nMorningstar Rating\\nTotal Return % as of 2 Feb 2023. Last Close as of 2 Feb 2023. Fair Value as of 6 Nov 2022 22:59, UTC.'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 20 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nRecent Analyst Notes\\nNear-Term Pressure Not Unique to Amazon; Well-Positioned for Long-Term Growth; FVE Cut to $150 Dan \\nRomanoff,Senior Equity Analyst,28 Oct 2022\\nAmazon reported disappointing third-quarter results and provided investors with soft fourth-quarter guidance, \\nwith the performance of AWS being our greatest near-term concern. This quarter stings, as this was supposed to \\nbe the quarter where Amazon had finally lapped pandemic-fueled issues. We continue to believe long-term \\ngrowth driven by e-commerce proliferation, AWS, and advertising, but the near term is clouded by a variety of \\nmacroeconomic issues, including currency headwinds, high inflation, soaring energy costs, and deceleration in \\nAWS. We can look through these issues but we believe they are likely to persist throughout 2023, which \\ndecreases our confidence over the medium term as well. We are lowering our growth and profitability \\nassumptions, and in turn our fair value estimate drops to $150 per share, from $192 previously. Still, we are not \\nready to throw in the towel on Amazon and we see shares as attractive, but clearly the company has still not \\nfound stable footing on its path out of the pandemic.Third-quarter revenue grew 15% year over year as reported, \\nor 19% in constant currency, to $127.1 billion, compared with guidance of $125 billion to $130 billion. Currency \\ncontinued to worsen throughout the quarter, which crimped revenue growth. From a retail perspective, online \\nstores grew 7% year over year as reported, physical stores improved 10%, third-party seller services grew 18%, \\nand subscription services increased 9%. Prime Day was held in the third quarter of 2022, compared with the \\nsecond quarter in 2022, which resulted in an artificial 400 basis points of revenue growth for Amazon this \\nquarter. The two most critical segments, AWS and advertising, grew 27% and 25% over the year-ago period, \\nrespectively. AWS enjoyed strong backlog growth, but was proactively helping customers manage cloud \\ncomputing costs as the economy slows. Compared with our model, online stores, subscription services, and AWS \\ndrove the revenue miss. \\nAmazon Shows Signs of Life With Solid Results and Guidance; FVE $192 Dan Romanoff,Senior Equity \\nAnalyst,29 Jul 2022\\nAmazon reported good second-quarter top-line and bottom-line results which were ahead of FactSet consensus \\nexpectations and provided an encouraging revenue outlook for the third quarter. While AWS remains a \\ntremendous opportunity and performed well once again, the more important takeaway this quarter is that retail-\\nrelated businesses, especially third-party seller services, are coming back and even delivered some upside \\ncompared with our expectations. We are not ready to declare victory for the company just yet, but we are \\nencouraged by results and note that the pandemic-fueled growth surge is now removed from prior-year \\ncomparisons, so growth should optically improve going forward.We are maintaining our $192 fair value estimate \\nfor wide-moat Amazon. Even with shares up as much as 14% after hours, we continue to view shares as \\nattractive, as Amazon remains one of our top picks.Second-quarter revenue grew 7% year over year as reported, \\nor 10% in constant currency, to $121.2 billion, compared with guidance of $116 billion to $121 billion. The '\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m\"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 21 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\ncurrency headwind was 120 basis points worse than what was called for within guidance. For perspective, the \\ncomparison last year was 27% growth, so still challenging. In short, the top-line performance is showing \\nimprovement and was solid. From a retail perspective, online stores declined 3% year over year, physical stores \\nimproved 12%, third-party seller services grew 9%, and subscription services increased 10%. Increases on Prime \\nmembership fees and third-party seller fees helped revenue while Prime member churn was better than \\nexpected. Unit growth was 1%. The two most critical segments, AWS and advertising, grew 33% and 18% over \\nthe year-ago period, respectively. Compared with our model, third-party seller services and AWS drove the \\nlargest revenue outperformance. \\nAmazon's Profitability Hit by Inflation, Excess Capacity; Guidance Doesn't Help; FVE Down to $3,850 Dan \\nRomanoff,Senior Equity Analyst,29 Apr 2022\\nWe are lowering our fair value estimate to $3,850 per share, from $4,100, for wide-moat Amazon after it reported \\na mixed quarter and issued worse than expected guidance for the second quarter. The highlight of results was \\nstrength in AWS, which continues to benefit from the ongoing shift of enterprise workloads to the cloud. While \\nrevenue was ahead of the guidance midpoint, first-party sales suffered its second straight quarter of year-over-\\nyear contraction, which we believe is a first but is not a surprise. Operating margin was a concern, as inflation, \\nexcess labor, and excess capacity ate into profitability, which came in just above the low end of guidance and \\nwas well short of our expectations. Meanwhile, second-quarter guidance is well short of our model, as we think \\nprofitability challenges will linger for a couple of quarters and perhaps into next year; Prime Day will move into \\nthe third quarter, and demand levels have not yet normalized post-COVID-19. While we expect the second half of \\nthe year to show improvements, we modestly lowered our growth and profitability estimates, particularly in the \\nnear term, to account for guidance and heightened uncertainty.First-quarter revenue grew 7% \u001b[0m\u001b[32m(\u001b[0m\u001b[32m8% in constant \\ncurrency\u001b[0m\u001b[32m)\u001b[0m\u001b[32m year over year to $116.4 billion, compared with guidance of $112 billion to $117 billion. Pandemic-\\nfueled growth last year in online stores and third-party seller services continued to slow to a 3% decline and 7% \\ngrowth year over year in the quarter, respectively, while physical stores continue to benefit from consumers \\nleaving their homes to shop and grew by 17% year over year. Unit growth was flat, but we view this as a mix \\nissue as shopping habits normalize. Amazon noted no consumer slowdown as macro factors such as inflation and \\nthe Russian invasion loom large. Compared with the year-ago period, subscription services slowed to 11% \\ngrowth, AWS posted strong 37% growth, and advertising decelerated to 23% growth. \\nAmazon Delivers Mixed Quarter, Light Guidance, and Prime Price Hike; FVE Steady at $4,100 Dan \\nRomanoff,Senior Equity Analyst,4 Feb 2022\\nWe are maintaining our fair value estimate for wide-moat Amazon at $4,100 per share, and despite shares rising \\n14% after hours, we still view shares as undervalued. We think the highlight of the quarter was Amazon's plan to \\nraise prices in the U.S. on Prime to $139 from $119, beginning on Feb. 18 for new members, underscoring \\nAmazon's pricing power and highlighting Prime as a revenue driver. Meanwhile, Amazon will continue to invest \"\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 22 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nheavily in Amazon Web Services, or AWS, fulfilment capacity and delivery, although we see these beginning to \\nease in the second half of 2022. Overall, we do not see issues with the long-term story as Amazon remains well \\npositioned to prosper from the secular shift toward e-commerce and the public cloud over the next \\ndecade.Fourth-quarter revenue grew 9% \u001b[0m\u001b[32m(\u001b[0m\u001b[32m10% in constant currency\u001b[0m\u001b[32m)\u001b[0m\u001b[32m year over year to $137.4 billion, compared \\nwith guidance of $130 billion to $140 billion. Pandemic-fueled growth last year in online stores and third-party \\nseller services continued to slow to a 1% decline and 11% growth year over year in the quarter, respectively, \\nwhile physical stores enjoyed the benefit of easing lockdowns and grew by 17% year over year. The company \\ncontinues to suffer from labor issues and increasing shipping costs, although the impact from these items came \\nin as expected for the quarter. Still, operating profit came in better than we anticipated and above the high end \\nof the guidance range.Compared with the year-ago period, subscription services slowed to 15% growth, AWS \\naccelerated again to 40% growth, and advertising decelerated to 32% growth. Management broke out \\nadvertising revenue as a distinct segment for the first time—we were pleased to see that it was 93% of the \\n\"other\" segment and was higher than our prior estimates. Performance of AWS remains impressive with a fourth \\nstraight quarter of acceleration off of a $13 billion revenue base a year ago. We continue to view advertising and \\nAWS as key long-term drivers for shares. \\nWage and Shipping Inflation Crimping Amazon’s Near-Term Margins; FVE Down to $4,100 Dan \\nRomanoff,Senior Equity Analyst,29 Oct 2021\\nWe are lowering our fair value estimate for wide-moat Amazon to $4,100 per share from $4,200, based mainly on \\nmargin pressures arising from hiring and shipping challenges, which we think may pressure profitability in the \\nnear term and, to a lesser extent, the long term. That said, we see shares as attractive. Amazon reported third-\\nquarter results that came in above the midpoints of its guidance range for both revenue and operating income \\nbut were still shy of investor expectations. Guidance for the fourth quarter was modestly below our expectations \\nbut has little bearing on our long-term view. Meanwhile, the company continues to rapidly add capacity in order \\nto meet customer demand and one day delivery, even as it roughly doubled its footprint during the past two \\nyears. We don’t see issues with the long-term story as Amazon remains well positioned to prosper from the \\nsecular shift toward e-commerce and the public cloud over the next decade, but we do see a modest reset in \\nterms of growth and profitability through the next several quarters.Third-quarter revenue grew 15% \u001b[0m\u001b[32m(\u001b[0m\u001b[32m15% in \\nconstant currency\u001b[0m\u001b[32m)\u001b[0m\u001b[32m year over year to $110.8 billion, compared with FactSet consensus of $111.6 billion and \\nguidance of $106 billion to $112 billion. Surging growth last year in online stores and third-party seller services \\nslowed to 3% and 19% year over year gains in the third quarter, respectively, while physical stores accelerated to \\n13% growth. This shift succinctly captures the dynamics of the end of COVID-driven lockdowns. On a year over \\nyear basis, subscription services slowed to 24% growth, AWS accelerated to 39% growth, and other decelerated \\nto 50% growth. Performance of AWS was staggering with acceleration from a $12 billion base a year ago. We \\ncontinue to view advertising \u001b[0m\u001b[32m(\u001b[0m\u001b[32min “other”\u001b[0m\u001b[32m)\u001b[0m\u001b[32m and AWS as key long-term growth drivers for the firm. '\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m\"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 23 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Amazon.com Inc AMZN QQQQ 3 Feb 2023 05:14, UTC\\nLast Price Fair Value Estimate Price/FVE Market Cap Economic Moat TMMoat Trend TM Uncertainty Capital Allocation ESG Risk Rating Assessment 1\\n112.91 USD\\n2 Feb 2023137.00 USD\\n3 Feb 2023 05:12, UTC0.821.07 USD Tril\\n2 Feb 2023\\nWide Stable High Exemplary ;;;;;\\n1 Feb 2023 06:00, UTC\\nAmazon E-Commerce Growth Slows as COVID-19 Eases; Other Segments Still Strong; FVE Steady at $4,200 \\nDan Romanoff,Senior Equity Analyst,30 Jul 2021\\nWide-moat Amazon reported second-quarter results that were within its guidance range but were slightly short \\nof investor expectations for both revenue and operating profit. Guidance for the third quarter is also light \\ncompared with FactSet consensus. In short, consumers' online shopping levels are returning to more normal \\nlevels as they shift some spending to other entertainment sources and offline shopping. Meanwhile, the \\ncompany continues to add capacity at a breakneck pace in order to meet customer demand and one day delivery, \\neven as it roughly doubled its footprint during the last 18 months. We see no cracks in the long-term story as \\nAmazon remains well positioned to prosper from the secular shift toward e-commerce and the public cloud over \\nthe next decade. We note revenue weakness was limited to Amazon’s own online store segment, with other \\nsegments performing well and overall profitability impressive despite lower revenue. Our model changes are \\nfairly modest, thus we are maintaining our $4,200 per share fair value estimate and see shares as \\nundervalued.Second-quarter revenue grew 27% \u001b[0m\u001b[32m(\u001b[0m\u001b[32m24% in constant currency\u001b[0m\u001b[32m)\u001b[0m\u001b[32m year over year to $113.1 billion, \\ncompared with FactSet consensus of $115.3 billion and guidance of $110 billion to $116 billion. Meteoric growth \\nin online stores from the last four quarters slowed to a more pedestrian 16% year-over-year increase while \\nphysical stores recovered from a year of declining revenue and grew 11% year over year. Still, third party seller \\nservices grew 38% year over year despite a marked slowdown, as the solution remains attractive to merchants. \\nSubscription services, AWS, and other remained strong, with year-over-year growth of 32%, 37%, and 88%, \\nrespectively. We continue to view advertising \u001b[0m\u001b[32m(\u001b[0m\u001b[32min “other”\u001b[0m\u001b[32m)\u001b[0m\u001b[32m and AWS as key long-term growth drivers for the firm. \\nIn particular we see AWS as the clear leader in public cloud and we think Amazon’s advertising business offers a \\nunique value proposition for marketers. \"\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m\"Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 24 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\nMorningstar Equity Research Star Rating Methodology\\nOverview\\nAt the heart of our valuation system is a detailed projec-\\ntion of a company’s future cash flows, resulting from our \\nanalysts’ research. Analysts create custom industry and \\ncompany assumptions to feed income statement, balance \\nsheet, and capital investment assumptions into our glob-\\nally standardized, proprietary discounted cash flow, or \\nDCF, modeling templates. We use scenario analysis, inde-\\npth competitive advantage analysis, and a variety of other \\nanalytical tools to augment this process. Moreover, we \\nthink analyzing valuation through discounted cash flows \\npresents a better lens for viewing cyclical companies, \\nhigh-growth firms, businesses with finite lives \u001b[0m\u001b[32m(\u001b[0m\u001b[32me.g., \\nmines\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, or companies expected to generate negative \\nearnings over the next few years. That said, we don’t dis-\\nmiss multiples altogether but rather use them as support-\\ning cross-checks for our DCF-based fair value estimates. \\nWe also acknowledge that DCF models offer their own \\nchallenges \u001b[0m\u001b[32m(\u001b[0m\u001b[32mincluding a potential proliferation of estim-\\nated inputs and the possibility that the method may miss \\nshortterm market-price movements\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, but we believe these \\nnegatives are mitigated by deep analysis and our \\nlongterm approach.\\nMorningstar’s equity research group \u001b[0m\u001b[32m(\u001b[0m\u001b[32m”we,” “our”\u001b[0m\u001b[32m)\u001b[0m\u001b[32m be-\\nlieves that a company’s intrinsic worth results from the \\nfuture cash flows it can generate. The Morningstar Rating \\nfor stocks identifies stocks trading at a discount or premi-\\num to their intrinsic worth—or fair value estimate, in \\nMorningstar terminology. Five-star stocks sell for the \\nbiggest risk adjusted discount to their fair values, where-\\nas 1-star stocks trade at premiums to their intrinsic worth.\\nFour key components drive the Morningstar rating: \u001b[0m\u001b[32m(\u001b[0m\u001b[32m1\u001b[0m\u001b[32m)\u001b[0m\u001b[32m our \\nassessment of the firm’s economic moat, \u001b[0m\u001b[32m(\u001b[0m\u001b[32m2\u001b[0m\u001b[32m)\u001b[0m\u001b[32m our estimate \\nof the stock’s fair value, \u001b[0m\u001b[32m(\u001b[0m\u001b[32m3\u001b[0m\u001b[32m)\u001b[0m\u001b[32m our uncertainty around that \\nfair value estimate and \u001b[0m\u001b[32m(\u001b[0m\u001b[32m4\u001b[0m\u001b[32m)\u001b[0m\u001b[32m the current market price. This \\nprocess ultimately culminates in our singlepoint star rat-\\ning.\\n1. Economic Moat\\nThe concept of an economic moat plays a vital role not \\nonly in our qualitative assessment of a firm’s long-term \\ninvestment potential, but also in the actual calculation of \\nour fair value estimates. An economic moat is a structural \\nfeature that allows a firm to sustain excess profits over a long period of time. We define economic profits as re-\\nturns on invested capital \u001b[0m\u001b[32m(\u001b[0m\u001b[32mor ROIC\u001b[0m\u001b[32m)\u001b[0m\u001b[32m over and above our es-\\ntimate of a firm’s cost of capital, or weighted average \\ncost of capital \u001b[0m\u001b[32m(\u001b[0m\u001b[32mor WACC\u001b[0m\u001b[32m)\u001b[0m\u001b[32m. Without a moat, profits are \\nmore susceptible to competition. We have identified five \\nsources of economic moats: intangible assets, switching \\ncosts, network effect, cost advantage, and efficient scale.\\nCompanies with a narrow moat are those we believe are \\nmore likely than not to achieve normalized excess returns \\nfor at least the next 10 years. Wide-moat companies are \\nthose in which we have very high confidence that excess \\nreturns will remain for 10 years, with excess returns more \\nlikely than not to remain for at least 20 years. The longer \\na firm generates economic profits, the higher its intrinsic \\nvalue. We believe low-quality, no-moat companies will \\nsee their normalized returns gravitate toward the firm’s \\ncost of capital more quickly than companies with moats.\\nWhen considering a company's moat, we also assess \\nwhether there is a substantial threat of value destruction, \\nstemming from risks related to ESG, industry disruption, \\nfinancial health, or other idiosyncratic issues. In this con-\\ntext, a risk is considered potentially value destructive if its \\noccurrence would eliminate a firm’s economic profit on a \\ncumulative or midcycle basis. If we deem the probability \\nof occurrence sufficiently high, we would not characterize \\nthe company as possessing an economic moat.\\nTo assess the sustainability of excess profits, analysts \\nperform ongoing assessments of the moat trend. A firm’s \\nmoat trend is positive in cases where we think its sources \\nof competitive advantage are growing stronger; stable \\nwhere we don’t anticipate changes to competitive ad-\\nvantages over the next several years; or negative when \\nwe see signs of deterioration.\\n2. Estimated Fair Value\\nCombining our analysts’ financial forecasts with the \\nfirm’s economic moat helps us assess how long returns \\non invested capital are likely to exceed the firm’s cost of \\ncapital. Returns of firms with a wide economic moat rat-\\ning are assumed to fade to the perpetuity period over a \\nlonger period of time than the returns of narrow-moat \\nfirms, and both will fade slower than no-moat firms, in-\\ncreasing our estimate of their intrinsic value.Our model is divided into three distinct stages:\\nStage I: Explicit Forecast\\nIn this stage, which can last five to 10 years, analysts \\nmake full financial statement forecasts, including items \\nsuch as revenue, profit margins, tax rates, changes in \\nworkingcapital accounts, and capital spending. Based on \\nthese projections, we calculate earnings before interest, \\nafter taxes \u001b[0m\u001b[32m(\u001b[0m\u001b[32mEBI\u001b[0m\u001b[32m)\u001b[0m\u001b[32m and the net new investment \u001b[0m\u001b[32m(\u001b[0m\u001b[32mNNI\u001b[0m\u001b[32m)\u001b[0m\u001b[32m to de-\\nrive our annual free cash flow forecast.\\nStage II: Fade\\nThe second stage of our model is the period it will take \\nthe company’s return on new invested capital—the re-\\nturn on capital of the next dollar invested \u001b[0m\u001b[32m(\u001b[0m\u001b[32m“RONIC”\u001b[0m\u001b[32m)\u001b[0m\u001b[32m—to \\ndecline \u001b[0m\u001b[32m(\u001b[0m\u001b[32mor rise\u001b[0m\u001b[32m)\u001b[0m\u001b[32m to its cost of capital. During the Stage II \\nperiod, we use a formula to approximate cash flows in \\nlieu of explicitly modeling the income statement, balance \\nsheet, and cash flow statement as we do in Stage I. The \\nlength of the second stage depends on the strength of \\nthe company’s economic moat. We forecast this period to \\nlast anywhere from one year \u001b[0m\u001b[32m(\u001b[0m\u001b[32mfor companies with no eco-\\nnomic moat\u001b[0m\u001b[32m)\u001b[0m\u001b[32m to 10–15 years or more \u001b[0m\u001b[32m(\u001b[0m\u001b[32mfor wide-moat com-\\npanies\u001b[0m\u001b[32m)\u001b[0m\u001b[32m. During this period, cash flows are forecast using \\nfour assumptions: an average growth rate for EBI over the \\nperiod, a normalized investment rate, average return on \\nnew invested capital \u001b[0m\u001b[32m(\u001b[0m\u001b[32mRONIC\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, and the number of years \\nuntil perpetuity, when excess returns cease. The invest-\\nment rate and return on new invested capital decline un-\\ntil a perpetuity value is calculated. In the case of firms \\nthat do not earn their cost of capital, we assume marginal \\nROICs rise to the firm’s cost of capital \u001b[0m\u001b[32m(\u001b[0m\u001b[32musually attribut-\\nable to less reinvestment\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, and we may truncate the \\nsecond stage.\\nStage III: Perpetuity\\nOnce a company’s marginal ROIC hits its cost of capital, \\nwe calculate a continuing value, using a standard per-\\npetuity formula. At perpetuity, we assume that any \\ngrowth or decline or investment in the business neither \\ncreates nor destroys value and that any new investment \\nprovides a return in line with estimated WACC.\\nBecause a dollar earned today is worth more than a dollar \\nearned tomorrow, we discount our projections of cash \\nflows in stages I, II, and III to arrive at a total present \\nvalue of expected future cash flows. Because we are \\nmodeling free cash flow to the firm—representing cash \\navailable to provide a return to all capital providers—we \\ndiscount future cash flows using the WACC, which is a \\nweighted average of the costs of equity, debt, and pre-\\nferred stock \u001b[0m\u001b[32m(\u001b[0m\u001b[32mand any other funding sources\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, using ex-\\npected future proportionate long-term, market-value \\nweights.\\n3. Uncertainty Around That Fair Value Estimate\"\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 25 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\nMorningstar Equity Research Star Rating Methodology\\n Morningstar’s Uncertainty Rating is designed to capture \\nthe range of potential outcomes for a company’s intrinsic \\nvalue. This rating is used to assign the margin of safety \\nrequired before investing, which in turn explicitly drives \\nour stock star rating system. The Uncertainty Rating is \\naimed at identifying the confidence we should have in as-\\nsigning a fair value estimate for a given stock. \\nOur Uncertainty Rating is meant to take into account any-\\nthing that can increase the potential dispersion of future \\noutcomes for the intrinsic value of a company, and any-\\nthing that can affect our ability to accurately predict \\nthese outcomes. The rating begins with a suggested rat-\\ning produced by a quantitative process based on the trail-\\ning 12-month standard deviation of daily stock returns. \\nAn analyst overlay is then applied, with analysts using \\nthe suggested rating, historical rating data, and their own \\nknowledge of the company to inform them as they make \\nthe final Uncertainty Rating decision. Ultimately, the rat-\\ning decision rests with the analyst. Analysts take into ac-\\ncount many characteristics when making their final de-\\ncision, including cyclical factors, operational and financial \\nfactors such as leverage, company-specific events, ESG \\nrisks, and anything else that might increase the potential \\ndispersion of future outcomes and our ability to estimate \\nthose outcomes. \\nOur recommended margin of safety—the discount to fair \\nvalue demanded before we’d recommend buying or \\nselling the stock—widens as our uncertainty of the es-\\ntimated value of the equity increases. The more uncertain \\nwe are about the potential dispersion of outcomes, the \\ngreater the discount we require relative to our estimate of \\nthe value of the firm before we would recommend the \\npurchase of the shares. In addition, the Uncertainty Rat-\\ning provides guidance in portfolio construction based on \\nrisk tolerance. \\nOur Uncertainty Ratings are: Low, Medium, High, Very \\nHigh, and Extreme.\\nMargin of Safety\\nQualitative Analysis \\nUncertainty Ratings QQQQQ Rating QRating\\nLow 20% Discount 25% Premium\\nMedium 30% Discount 35% Premium\\nHigh 40% Discount 55% Premium\\nVery High 50% Discount 75% Premium\\nExtreme 75% Discount 300% Premium\\nOur uncertainty rating is based on the interquartile range, \\nor the middle 50% of potential outcomes, covering the \\n25th percentile–75th percentile. This means that when a \\nstock hits 5 stars, we expect there is a 75% chance that \\nthe intrinsic value of that stock lies above the current \\nmarket price. Similarly, when a stock hits 1 star, we ex-pect there is a 75% chance that the intrinsic value of that \\nstock lies below the current market price.\\n4. Market Price\\nThe market prices used in this analysis and noted in the \\nreport come from exchange on which the stock is listed \\nwhich we believe is a reliable source.\\nFor more details about our methodology, please go to \\nhttps://shareholders.morningstar.com\\nMorningstar Star Rating for Stocks\\nOnce we determine the fair value estimate of a stock, we \\ncompare it with the stock’s current market price on a \\ndaily basis, and the star rating is automatically re-calcu-\\nlated at the market close on every day the market on \\nwhich the stock is listed is open. Our analysts keep close \\ntabs on the companies they follow, and, based on thor-\\nough and ongoing analysis, raise or lower their fair value \\nestimates as warranted.\\nPlease note, there is no predefined distribution of stars. \\nThat is, the percentage of stocks that earn 5 stars can \\nfluctuate daily, so the star ratings, in the aggregate, can \\nserve as a gauge of the broader market’s valuation. \\nWhen there are many 5-star stocks, the stock market as a \\nwhole is more undervalued, in our opinion, than when \\nvery few companies garner our highest rating.\\nWe expect that if our base-case assumptions are true the \\nmarket price will converge on our fair value estimate over time generally within three years \u001b[0m\u001b[32m(\u001b[0m\u001b[32malthough it is im-\\npossible to predict the exact time frame in which market \\nprices may adjust\u001b[0m\u001b[32m)\u001b[0m\u001b[32m.\\nOur star ratings are guideposts to a broad audience and \\nindividuals must consider their own specific investment \\ngoals, risk tolerance, tax situation, time horizon, income \\nneeds, and complete investment portfolio, among other \\nfactors.\\nThe Morningstar Star Ratings for stocks are defined be-\\nlow:\\nQQQQQ We believe appreciation beyond a fair risk ad-\\njusted return is highly likely over a multiyear time frame. \\nScenario analysis developed by our analysts indicates \\nthat the current market price represents an excessively \\npessimistic outlook, limiting downside risk and maximiz-\\ning upside potential.\\nQQQQ We believe appreciation beyond a fair risk-ad-\\njusted return is likely.\\nQQQ Indicates our belief that investors are likely to re-\\nceive a fair risk-adjusted return \u001b[0m\u001b[32m(\u001b[0m\u001b[32mapproximately cost of \\nequity\u001b[0m\u001b[32m)\u001b[0m\u001b[32m.\\nQQ We believe investors are likely to receive a less than \\nfair risk-adjusted return.\\nQ Indicates a high probability of undesirable risk-adjus-\\nted returns from the current market price over a multiyear '\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 26 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\ntime frame, based on our analysis. Scenario analysis by \\nour analysts indicates that the market is pricing in an ex-\\ncessively optimistic outlook, limiting upside potential and \\nleaving the investor exposed to Capital loss.\\nOther Definitions\\nLast Price: Price of the stock as of the close of the mar-\\nket of the last trading day before date of the report.\\nCapital Allocation Rating: Our Capital Allocation \u001b[0m\u001b[32m(\u001b[0m\u001b[32mor \\nStewardship\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Rating represents our assessment of the \\nquality of management’s capital allocation, with particu-\\nlar emphasis on the firm’s balance sheet, investments, \\nand shareholder distributions. Analysts consider compan-\\nies’ investment strategy and valuation, balance sheet \\nmanagement, and dividend and share buyback policies. \\nCorporate governance factors are only considered if they \\nare likely to materially impact shareholder value, though \\neither the balance sheet, investment, or shareholder dis-\\ntributions. Analysts assign one of three ratings: \"Exem-\\nplary\", \"Standard\", or \"Poor\". Analysts judge Capital Alloc-\\nation from an equity holder’s perspective. Ratings are de-\\ntermined on a forward looking and absolute basis. The \\nStandard rating is most common as most managers will \\nexhibit neither exceptionally strong nor poor capital alloc-\\nation.\\nCapital Allocation \u001b[0m\u001b[32m(\u001b[0m\u001b[32mor Stewardship\u001b[0m\u001b[32m)\u001b[0m\u001b[32m analysis published pri-\\nor to Dec. 9, 2020, was determined using a different pro-\\ncess. Beyond investment strategy, financial leverage, and \\ndividend and share buyback policies, analysts also con-\\nsidered execution, compensation, related party transac-\\ntions, and accounting practices in the rating.\\nCapital Allocation Rating: Our Capital Allocation \u001b[0m\u001b[32m(\u001b[0m\u001b[32mor \\nStewardship\u001b[0m\u001b[32m)\u001b[0m\u001b[32m Rating represents our assessment of the \\nquality of management’s capital allocation, with particu-\\nlar emphasis on the firm’s balance sheet, investments, \\nand shareholder distributions. Analysts consider compan-\\nies’ investment strategy and valuation, balance sheet \\nmanagement, and dividend and share buyback policies. \\nCorporate governance factors are only considered if they \\nare likely to materially impact shareholder value, though \\neither the balance sheet, investment, or shareholder dis-\\ntributions. Analysts assign one of three ratings: \"Exem-\\nplary\", \"Standard\", or \"Poor\". Analysts judge Capital Alloc-\\nation from an equity holder’s perspective. Ratings are de-\\ntermined on a forward looking and absolute basis. The \\nStandard rating is most common as most managers will \\nexhibit neither exceptionally strong nor poor capital alloc-\\nation.\\nCapital Allocation \u001b[0m\u001b[32m(\u001b[0m\u001b[32mor Stewardship\u001b[0m\u001b[32m)\u001b[0m\u001b[32m analysis published pri-\\nor to Dec. 9, 2020, was determined using a different pro-\\ncess. Beyond investment strategy, financial leverage, and \\ndividend and share buyback policies, analysts also con-sidered execution, compensation, related party transac-\\ntions, and accounting practices in the rating.\\nSustainalytics ESG Risk Rating Assessment: The ESG \\nRisk Rating Assessment is provided by Sustainalytics; a \\nMorningstar company.\\nSustainalytics’ ESG Risk Ratings measure the degree to \\nwhich company’s economic value at risk is driven by en-\\nvironment, social and governance \u001b[0m\u001b[32m(\u001b[0m\u001b[32mESG\u001b[0m\u001b[32m)\u001b[0m\u001b[32m factors.\\nSustainalytics analyzes over 1,300 data points to assess a \\ncompany’s exposure to and management of ESG risks. In \\nother words, ESG Risk Ratings measures a company’s un-\\nmanaged ESG Risks represented as a quantitative score. \\nUnmanaged Risk is measured on an open-ended scale \\nstarting at zero \u001b[0m\u001b[32m(\u001b[0m\u001b[32mno risk\u001b[0m\u001b[32m)\u001b[0m\u001b[32m with lower scores representing \\nless unmanaged risk and, for 95% of cases, the unman-\\naged ESG Risk score is below 50.\\nBased on their quantitative scores, companies are \\ngrouped into one of five Risk Categories \u001b[0m\u001b[32m(\u001b[0m\u001b[32mnegligible, low, \\nmedium, high, severe\u001b[0m\u001b[32m)\u001b[0m\u001b[32m. These risk categories are absolute, \\nmeaning that a ‘high risk’ assessment reflects a compar-\\nable degree of unmanaged ESG risk across all subindus-\\ntries covered.\\nThe ESG Risk Rating Assessment is a visual representa-\\ntion of Sustainalytics ESG Risk Categories on a 1 to 5 \\nscale. Companies with Negligible Risk = 5 Globes, Low \\nRisk = 4, Medium Risk = 3 Globes, High Risk = 2 Globes, \\nSevere Risk = 1 Globe. For more information, please visit \\nsustainalytics.com/esg-ratings/\\nRatings should not be used as the sole basis in evaluating \\na company or security. Ratings involve unknown risks and \\nuncertainties which may cause our expectations not to \\noccur or to differ significantly from what was expected \\nand should not be considered an offer or solicitation to \\nbuy or sell a security.\\nRisk Warning\\nPlease note that investments in securities are subject to \\nmarket and other risks and there is no assurance or guar-\\nantee that the intended investment objectives will be \\nachieved. Past performance of a security may or may not \\nbe sustained in future and is no indication of future per-\\nformance. A security investment return and an investor’s \\nprincipal value will fluctuate so that, when redeemed, an \\ninvestor’s shares may be worth more or less than their \\noriginal cost. A security’s current investment performance \\nmay be lower or higher than the investment performance \\nnoted within the report. Morningstar’s Uncertainty Rating \\nserves as a useful data point with respect to sensitivity \\nanalysis of the assumptions used in our determining a fair \\nvalue price.General Disclosure\\nUnless otherwise provided in a separate agreement, re-\\ncipients accessing this report may only use it in the coun-\\ntry in which the Morningstar distributor is based. Unless \\nstated otherwise, the original distributor of the report is \\nMorningstar Research Services LLC, a U.S.A. domiciled \\nfinancial institution.\\nThis report is for informational purposes only and has no \\nregard to the specific investment objectives, financial \\nsituation or particular needs of any specific recipient. This \\npublication is intended to provide information to assist in-\\nstitutional investors in making their own investment de-\\ncisions, not to provide investment advice to any specific \\ninvestor. Therefore, investments discussed and recom-\\nmendations made herein may not be suitable for all in-\\nvestors: recipients must exercise their own independent \\njudgment as to the suitability of such investments and re-\\ncommendations in the light of their own investment ob-\\njectives, experience, taxation status and financial posi-\\ntion.\\nThe information, data, analyses and opinions presented \\nherein are not warranted to be accurate, correct, com-\\nplete or timely. Unless otherwise provided in a separate \\nagreement, neither Morningstar, Inc. or the Equity Re-\\nsearch Group represents that the report contents meet all \\nof the presentation and/or disclosure standards applic-\\nable in the jurisdiction the recipient is located.\\nExcept as otherwise required by law or provided for in a \\nseparate agreement, the analyst, Morningstar, Inc. and \\nthe Equity Research Group and their officers, directors \\nand employees shall not be responsible or liable for any \\ntrading decisions, damages or other losses resulting from, \\nor related to, the information, data, analyses or opinions \\nwithin the report. The Equity Research Group encourages \\nrecipients recipients of this report to read all relevant is-\\nsue documents \u001b[0m\u001b[32m(\u001b[0m\u001b[32me.g., prospectus\u001b[0m\u001b[32m)\u001b[0m\u001b[32m pertaining to the secur-\\nity concerned, including without limitation, information \\nrelevant to its investment objectives, risks, and costs be-\\nfore making an in vestment decision and when deemed \\nnecessary, to seek the advice of a legal, tax, and/or ac-\\ncounting professional.\\nThe Report and its contents are not directed to, or inten-\\nded for distribution to or use by, any person or entity who \\nis a citizen or resident of or located in any locality, state, \\ncountry or other jurisdiction where such distribution, pub-\\nlication, availability or use would be contrary to law or \\nregulation or which would subject Morningstar, Inc. or its \\naffiliates to any registration or licensing requirements in \\nsuch jurisdiction.'\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 27 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\nWhere this report is made available in a language other \\nthan English and in the case of inconsistencies between \\nthe English and translated versions of the report, the Eng-\\nlish version will control and supersede any ambiguities \\nassociated with any part or section of a report that has \\nbeen issued in a foreign language. Neither the analyst, \\nMorningstar, Inc., or the Equity Research Group guaran-\\ntees the accuracy of the translations.\\nThis report may be distributed in certain localities, coun-\\ntries and/or jurisdictions \u001b[0m\u001b[32m(\u001b[0m\u001b[32m“Territories”\u001b[0m\u001b[32m)\u001b[0m\u001b[32m by independent \\nthird parties or independent intermediaries and/or distrib-\\nutors \u001b[0m\u001b[32m(\u001b[0m\u001b[32m“Distributors”\u001b[0m\u001b[32m)\u001b[0m\u001b[32m. Such Distributors are not acting as \\nagents or representatives of the analyst, Morningstar, \\nInc. or the Equity Research Group. In Territories where a \\nDistributor distributes our report, the Distributor is solely \\nresponsible for complying with all applicable regulations, \\nlaws, rules, circulars, codes and guidelines established by \\nlocal and/or regional regulatory bodies, including laws in \\nconnection with the distribution third-party research re-\\nports.\\nConflicts of Interest\\nuNo interests are held by the analyst with respect to the \\nsecurity subject of this investment research report.\\nuMorningstar, Inc. may hold a long position in the se-\\ncurity subject of this investment research report that \\nexceeds 0.5% of the total issued share capital of the \\nsecurity. To determine if such is the case, please click \\nhttp://msi.morningstar.com and http://mdi.morning-\\nstar.com\\nuAnalysts’ compensation is derived from Morningstar, \\nInc.’s overall earnings and consists of salary, bonus \\nand in some cases restricted stock.\\nuNeither Morningstar, Inc. or the Equity Research Group \\nreceives commissions for providing research nor do \\nthey charge companies to be rated.\\nuNeither Morningstar, Inc. or the Equity Research Group \\nis a market maker or a liquidity provider of the security \\nnoted within this report.\\nuNeither Morningstar, Inc. or the Equity Research Group \\nhas been a lead manager or co-lead manager over the \\nprevious 12-months of any publicly disclosed offer of \\nfinancial instruments of the issuer.\\nuMorningstar, Inc.’s investment management group \\ndoes have arrangements with financial institutions to \\nprovide portfolio management/investment advice some \\nof which an analyst may issue investment research re-\\nports on. However, analysts do not have authority over \\nMorningstar’s investment management group’s busi-\\nness arrangements nor allow employees from the in-\\nvestment management group to participate or influ-\\nence the analysis or opinion prepared by them.\\nMorningstar, Inc. is a publicly traded company \u001b[0m\u001b[32m(\u001b[0m\u001b[32mTicker \\nSymbol: MORN\u001b[0m\u001b[32m)\u001b[0m\u001b[32m and thus a financial institution the se-\\ncurity of which is the subject of this report may own umore than 5% of Morningstar, Inc.’s total outstanding \\nshares. Please access Morningstar, Inc.’s proxy state-\\nment, “Security Ownership of Certain Beneficial Own-\\ners and Management” section https://\\nshareholders.morningstar.com/investor-relations/fin-\\nancials/sec-filings/default.aspx\\nuMorningstar, Inc. may provide the product issuer or its \\nrelated entities with services or products for a fee and \\non an arms’ length basis including software products \\nand licenses, research and consulting services, data \\nservices, licenses to republish our ratings and research \\nin their promotional material, event sponsorship and \\nwebsite advertising.\\nFurther information on Morningstar, Inc.’s conflict of in-\\nterest policies is available from https://\\nshareholders.morningstar.com Also, please note analysts \\nare subject to the CFA Institute’s Code of Ethics and \\nStandards of Professional Conduct.\\nFor a list of securities which the Equity Research Group \\ncurrently covers and provides written analysis on please \\ncontact your local Morningstar office. In addition, for his-\\ntorical analysis of securities covered, including their fair \\nvalue estimate, please contact your local office.\\nFor Recipients in Australia: This Report has been issued \\nand distributed in Australia by Morningstar Australasia \\nPty Ltd \u001b[0m\u001b[32m(\u001b[0m\u001b[32mABN: 95 090 665 544; ASFL: 240892 \u001b[0m\u001b[32m)\u001b[0m\u001b[32m. Morning-\\nstar Australasia Pty Ltd is the provider of the general ad-\\nvice \u001b[0m\u001b[32m(\u001b[0m\u001b[32m‘the Service’\u001b[0m\u001b[32m)\u001b[0m\u001b[32m and takes responsibility for the produc-\\ntion of this report. The Service is provided through the re-\\nsearch of investment products.\\nTo the extent the Report contains general advice it has \\nbeen prepared without reference to an investor’s object-\\nives, financial situation or needs. Investors should con-\\nsider the advice in light of these matters and, if applic-\\nable, the relevant Product Disclosure Statement before \\nmaking any decision to invest. Refer to our Financial Ser-\\nvices Guide \u001b[0m\u001b[32m(\u001b[0m\u001b[32mFSG\u001b[0m\u001b[32m)\u001b[0m\u001b[32m for more information at http://\\nwww.morningstar.com.au/fsg.pdf\\nFor Recipients in New Zealand: This report has been is-\\nsued and distributed by Morningstar Australasia Pty Ltd \\nand/or Morningstar Research Ltd \u001b[0m\u001b[32m(\u001b[0m\u001b[32mtogether ‘Morning-\\nstar’\u001b[0m\u001b[32m)\u001b[0m\u001b[32m. Morningstar is the provider of the regulated finan-\\ncial advice and takes responsibility for the production of \\nthis report. To the extent the report contains regulated \\nfinancial advice it has been prepared without reference to \\nan investor’s objectives, financial situation or needs. In-\\nvestors should consider the advice in light of these mat-\\nters and, if applicable, the relevant Product Disclosure \\nStatement before making any decision to invest. Refer to \\nour Financial Advice Provider Disclosure Statement at \\nwww.morningstar.com.au/s/fapds.pdf for more informa-tion.\\nFor Recipients in Hong Kong: The Report is distributed \\nby Morningstar Investment Management Asia Limited, \\nwhich is regulated by the Hong Kong Securities and Fu-\\ntures Commission to provide services to professional in-\\nvestors only. Neither Morningstar Investment Manage-\\nment Asia Limited, nor its representatives, are acting or \\nwill be deemed to be acting as an investment profession-\\nal to any recipients of this information unless expressly \\nagreed to by Morningstar Investment Management Asia \\nLimited. For enquiries regarding this research, please con-\\ntact a Morningstar Investment Management Asia Limited \\nLicensed Representative at https://shareholders.morning-\\nstar.com\\nFor recipients in India: This Investment Research is is-\\nsued by Morningstar Investment Adviser India Private \\nLimited. Morningstar Investment Adviser India Private \\nLimited is registered with the Securities and Exchange \\nBoard of India \u001b[0m\u001b[32m(\u001b[0m\u001b[32mRegistration number INA000001357 \u001b[0m\u001b[32m)\u001b[0m\u001b[32m and \\nprovides investment advice and research. Morningstar In-\\nvestment Adviser India Private Limited has not been the \\nsubject of any disciplinary action by SEBI or any other leg-\\nal/regulatory body. Morningstar Investment Adviser India \\nPrivate Limited is a wholly owned subsidiary of Morning-\\nstar Investment Management LLC. In India, Morningstar \\nInvestment Adviser India Private Limited has one asso-\\nciate, Morningstar India Private Limited, which provides \\ndata related services, financial data analysis and software \\ndevelopment. The Research Analyst has not served as an \\nofficer, director or employee of the fund company within \\nthe last 12 months, nor has it or its associates engaged in \\nmarket making activity for the fund company.\\n*The Conflicts of Interest disclosure above also applies to \\nrelatives and associates of Manager Research Analysts in \\nIndia # The Conflicts of Interest disclosure above also ap-\\nplies to associates of Manager Research Analysts in In-\\ndia. The terms and conditions on which Morningstar In-\\nvestment Adviser India Private Limited offers Investment \\nResearch to clients, varies from client to client, and are \\ndetailed in the respective client agreement.\\nFor recipients in Japan: The Report is distributed by Ib-\\nbotson Associates Japan, Inc., which is regulated by Fin-\\nancial Services Agency. Neither Ibbotson Associates Ja-\\npan, Inc., nor its representatives, are acting or will be \\ndeemed to be acting as an investment professional to any \\nrecipients of this information.\\nFor recipients in Singapore: For Institutional Investor \\naudiences only. Recipients of this report should contact \\ntheir financial professional in Singapore in relation to this \\nreport. Morningstar, Inc., and its affiliates, relies on cer-\\ntain exemptions \u001b[0m\u001b[32m(\u001b[0m\u001b[32mFinancial Advisers Regulations, Section '\u001b[0m,\n", "\u001b[2;32m│ │ \u001b[0m\u001b[32m'Morningstar Equity Company Report | Report as of 3 Feb 2023 05:20, UTC | Reporting Currency: USD | Trading Currency: USD | Exchange: NASDAQ - ALL MARKETS Page 28 of 28\\n©2023 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and \\nopinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and are not warranted to be correct, complete or \\naccurate. The opinions expressed are as of the date written and are subject to change without notice. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or \\nother losses resulting from, or related to, the information, data, analyses or opinions or their use. The information contained herein is the proprietary property of Morningstar and may not be reproduced, in whole or in \\npart, or used in any manner, without the prior written consent of Morningstar. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research \\nServices LLC, registered with and governed by the U.S. Securities and Exchange Commission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869. Please see important disclosures at \\nthe end of this report.ß ®Research Methodology for Valuing Companies\\n32B and 32C\u001b[0m\u001b[32m)\u001b[0m\u001b[32m to provide its investment research to recipi-\\nents in Singapore.'\u001b[0m\n", "\u001b[2;32m│ \u001b[0m\u001b[1m]\u001b[0m\n", "\u001b[1m}\u001b[0m\n" ] }, "metadata": {}, "output_type": "display_data" }, { "name": "stdout", "output_type": "stream", "text": [ "{\"message\":\"Index creation successful\"}" ] }, { "data": { "text/html": [ "
Amazon's 2024 forecast indicates a revenue projection of $607 billion. The company is expected to continue its \n",
       "growth trajectory, with a forecasted revenue increase from $513.9 billion in 2022 to $545.3 billion in 2023, and \n",
       "finally reaching $607 billion in 2024. Additionally, the forecast suggests an improvement in GAAP operating margin \n",
       "from 2% in 2021 to 6% in 2027, reflecting the company's efforts to optimize its investments and expand its \n",
       "operational efficiency.\n",
       "
\n" ], "text/plain": [ "Amazon's \u001b[1;36m2024\u001b[0m forecast indicates a revenue projection of $\u001b[1;36m607\u001b[0m billion. The company is expected to continue its \n", "growth trajectory, with a forecasted revenue increase from $\u001b[1;36m513.9\u001b[0m billion in \u001b[1;36m2022\u001b[0m to $\u001b[1;36m545.3\u001b[0m billion in \u001b[1;36m2023\u001b[0m, and \n", "finally reaching $\u001b[1;36m607\u001b[0m billion in \u001b[1;36m2024\u001b[0m. Additionally, the forecast suggests an improvement in GAAP operating margin \n", "from \u001b[1;36m2\u001b[0m% in \u001b[1;36m2021\u001b[0m to \u001b[1;36m6\u001b[0m% in \u001b[1;36m2027\u001b[0m, reflecting the company's efforts to optimize its investments and expand its \n", "operational efficiency.\n" ] }, "metadata": {}, "output_type": "display_data" } ], "source": [ "upload_url = 'http://localhost:8003/upload/'\n", "upload_files(data_dir, filelist[3], upload_url, show_content=True)\n", "!curl -X POST http://localhost:8003/create_index/\n", "response = !curl -X POST \"http://localhost:8003/ragit/\" -H \"Content-Type: application/json\" -d '{\"question\": \"Amazon 2024 forecast?\"}'\n", "print(json.loads(response[-1])['answer'])" ] }, { "cell_type": "markdown", "metadata": {}, "source": [ "### All files at once" ] }, { "cell_type": "code", "execution_count": 16, "metadata": {}, "outputs": [ { "name": "stdout", "output_type": "stream", "text": [ "{\"message\":\"All data has been erased\"}" ] } ], "source": [ "# does not affect the vectorstore, but it will destroy the parquet file with the embeddings\n", "# so make sure to create the index first\n", "!curl -X DELETE http://localhost:8003/erase_data/" ] }, { "cell_type": "code", "execution_count": 17, "metadata": {}, "outputs": [ { "name": "stdout", "output_type": "stream", "text": [ "{\"message\":\"Collection erased!\"}" ] } ], "source": [ "!curl -X DELETE http://localhost:8003/empty_collection/" ] }, { "cell_type": "code", "execution_count": 23, "metadata": {}, "outputs": [ { "data": { "text/html": [ "
'Uploaded ATT_SEC_AnnualReport_2022.pdf with response 200'\n",
       "
\n" ], "text/plain": [ "\u001b[32m'Uploaded ATT_SEC_AnnualReport_2022.pdf with response 200'\u001b[0m\n" ] }, "metadata": {}, "output_type": "display_data" }, { "data": { "text/html": [ "
'Uploaded ATT_StockAnalystNote_Annual_20230125.pdf with response 200'\n",
       "
\n" ], "text/plain": [ "\u001b[32m'Uploaded ATT_StockAnalystNote_Annual_20230125.pdf with response 200'\u001b[0m\n" ] }, "metadata": {}, "output_type": "display_data" }, { "data": { "text/html": [ "
'Uploaded ATT_CompanyReport_Annual_20230126.pdf with response 200'\n",
       "
\n" ], "text/plain": [ "\u001b[32m'Uploaded ATT_CompanyReport_Annual_20230126.pdf with response 200'\u001b[0m\n" ] }, "metadata": {}, "output_type": "display_data" }, { "data": { "text/html": [ "
'Uploaded AMZN_MS_CompanyReport_Annual_20230203.pdf with response 200'\n",
       "
\n" ], "text/plain": [ "\u001b[32m'Uploaded AMZN_MS_CompanyReport_Annual_20230203.pdf with response 200'\u001b[0m\n" ] }, "metadata": {}, "output_type": "display_data" }, { "data": { "text/html": [ "
'Uploaded AMZN_Morning Star_StockAnalystNote_20230203.pdf with response 200'\n",
       "
\n" ], "text/plain": [ "\u001b[32m'Uploaded AMZN_Morning Star_StockAnalystNote_20230203.pdf with response 200'\u001b[0m\n" ] }, "metadata": {}, "output_type": "display_data" }, { "data": { "text/html": [ "
'Uploaded AMZN_Moodys_CreditRating_2023.pdf with response 200'\n",
       "
\n" ], "text/plain": [ "\u001b[32m'Uploaded AMZN_Moodys_CreditRating_2023.pdf with response 200'\u001b[0m\n" ] }, "metadata": {}, "output_type": "display_data" }, { "data": { "text/html": [ "
'Uploaded AMZN_Morning Star_Transcript_Annual.pdf with response 200'\n",
       "
\n" ], "text/plain": [ "\u001b[32m'Uploaded AMZN_Morning Star_Transcript_Annual.pdf with response 200'\u001b[0m\n" ] }, "metadata": {}, "output_type": "display_data" } ], "source": [ "upload_files(data_dir, filelist, upload_url, show_content=False, n=100)" ] }, { "cell_type": "markdown", "metadata": {}, "source": [ "All files and their embeddings are now in the parquet file. We can decide to push it into the vectorstore. " ] }, { "cell_type": "code", "execution_count": 24, "metadata": {}, "outputs": [ { "name": "stdout", "output_type": "stream", "text": [ "{\"files\":[\"ATT_SEC_AnnualReport_2022.pdf\",\"text_vectors.parquet\",\".DS_Store\",\"ATT_StockAnalystNote_Annual_20230125.pdf\",\"ATT_CompanyReport_Annual_20230126.pdf\",\"AMZN_MS_CompanyReport_Annual_20230203.pdf\",\"AMZN_Morning Star_StockAnalystNote_20230203.pdf\",\"AMZN_Moodys_CreditRating_2023.pdf\",\"AMZN_Morning Star_Transcript_Annual.pdf\"]}" ] } ], "source": [ "!curl -X GET http://localhost:8003/list_files/" ] }, { "cell_type": "code", "execution_count": 25, "metadata": {}, "outputs": [ { "name": "stdout", "output_type": "stream", "text": [ "{\"message\":\"Index creation successful\"}" ] } ], "source": [ "# uploading files creates the embeddings in a parquet file\n", "# when one is satisfied with the nb of files uploaded, he can create the index\n", "# the parquet file is then destroyed to allow uploading files incrementally\n", "!curl -X POST http://localhost:8003/create_index/" ] }, { "cell_type": "markdown", "metadata": {}, "source": [ "Now, we can ask questions" ] }, { "cell_type": "code", "execution_count": 27, "metadata": {}, "outputs": [ { "data": { "text/html": [ "
[\n",
       "    'Amazon 2024 forecast? is deemed RELEVANT with max score: 0.80',\n",
       "    '1: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.80 - IRRELEVANT answer -  Pii detected -Amazon’s \n",
       "first-quarter outlook \\nincludes $121 billion to $126 billion in revenue and operating income from breakeven to \n",
       "$4.0 billion, compared \\nwith FactSet consensus estimates of $125.5 billion and $4.0 billion, respectively. \n",
       "Guidance assumes 210 basis \\npoints of pressure from currency impacts. Included in operating profit guidance is \n",
       "$640 million of severance \\ncosts. which renders profitability guidance better than it appears at first glance. We \n",
       "see a path to continuous \\nmargin improvement over time, even as uncertain macro conditions weigh in the near \n",
       "term.\\nBusiness Strategy & Outlook  Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nAmazon dominates its served \n",
       "markets, notably e-commerce and cloud services. It benefits from numerous \\ncompetitive advantages and has emerged \n",
       "as the clear e-commerce leader thanks to its size and scale, which \\nyield an unmatched selection of low-priced \n",
       "goods for consumers.\\n SUMMARY: <coroutine object summarize_it at 0x1faaee5e0>',\n",
       "    \"2: from AMZN_Morning Star_Transcript_Annual.pdf - score:0.79 - IRRELEVANT answer -  Pii detected -Brian T. \n",
       "Olsavsky\\nSenior Vice President and Chief Financial Officer | Amazon.com, Inc.\\nHi, Mark. So, on the AWS growth \n",
       "rate, I'm not sure I can forecast for you with any level of certainty \\nwhat is going to happen beyond this \n",
       "quarter. This is a bit uncharted territories economically. And \\nas we mentioned, there's some unique things going \n",
       "on with the customer base. I think many in \\nthis industry are all seeing the same thing. So, I don't have a \n",
       "crystal ball on that one, but we are \\ngoing to continue to work for -- to be there for our customers. And as I \n",
       "said in the earlier \\ncomments, we do have new deals. We have new workloads coming to the cloud. The value was \n",
       "\\nthere, and whether there's short-term, perhaps short-term belt-tightening in the infrastructure \\nexpense by a \n",
       "lot of companies, I think, the long-term trends are still there, and I think the quickest \\nway to save money is to\n",
       "get to the cloud, quite frankly.\\nSo, there's a lot of long-term positive in tough economic times.\\n SUMMARY: \n",
       "<coroutine object summarize_it at 0x1f79fbd80>\",\n",
       "    \"3: from AMZN_Morning Star_Transcript_Annual.pdf - score:0.74 - IRRELEVANT answer -  Pii detected -beyond, but \n",
       "we hope to make -- expect to make big improvements in 2023.\\nAndy Jassy\\nPresident and Chief Executive Officer | \n",
       "Amazon.com, Inc.\\nYeah. I'll start just at a broad level, priority wise, the connective tissue for everything we do\n",
       "across \\nthe Company, including in stores in North America is, we realize that we exist to make customers' \\nlives \n",
       "better and easier every day, and relentlessly invent to do you so, and being maniacally \\nfocused on the customer \n",
       "experience is always going to be a top priority for us. At the same time, \\nand this is true in North America as \n",
       "well as across the entire business, we're working really hard \\nto streamline our costs, and trying to do so, at \n",
       "the same time, that we don't give up on the long-\\nterm strategic investments that we believe can meaningfully \n",
       "change broad customer experiences, \\nand change Amazon over the long term.\\n SUMMARY: <coroutine object \n",
       "summarize_it at 0x1f7bc28f0>\",\n",
       "    '4: from AMZN_Morning Star_StockAnalystNote_20230203.pdf - score:0.72 - IRRELEVANT answer -  Pii detected \n",
       "-Amazon continues to make progress on its excess expenses, particularly in improvements to the productivity of \n",
       "\\nthe fulfillment network and transportation. Management plans to continue to optimize operations throughout \n",
       "\\n2023.\\nWhile guidance was slightly shy of our model, we are not surprised, given the macro environment. However, \n",
       "we \\nthink the continued AWS deceleration in January will be unnerving to investors. Amazon’s first-quarter outlook\n",
       "\\nincludes $121 billion-$126 billion in revenue and operating income from breakeven to $4.0 billion, compared with \n",
       "\\nFactSet consensus estimates of $125.5 billion and $4.0 billion, respectively. Guidance assumes 210 basis points \n",
       "of \\npressure from currency impacts. Included in operating profit guidance is $640 million of severance costs. \n",
       "which \\nrenders profitability guidance better than it appears at first glance. We see a path to continuous margin \n",
       "\\nimprovement over time, even as uncertain macro conditions weigh in the near term.  K\\n SUMMARY: <coroutine object\n",
       "summarize_it at 0x1f79fb610>',\n",
       "    '5: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.71 - IRRELEVANT answer -  Pii detected -We \n",
       "continue to believe long-term \\ngrowth driven by e-commerce proliferation, AWS, and advertising, but the near term \n",
       "is clouded by a variety of \\nmacroeconomic issues, including currency headwinds, high inflation, soaring energy \n",
       "costs, and deceleration in \\nAWS. We can look through these issues but we believe they are likely to persist \n",
       "throughout 2023, which \\ndecreases our confidence over the medium term as well. We are lowering our growth and \n",
       "profitability \\nassumptions, and in turn our fair value estimate drops to $150 per share, from $192 previously. \n",
       "Still, we are not \\nready to throw in the towel on Amazon and we see shares as attractive, but clearly the company \n",
       "has still not \\nfound stable footing on its path out of the pandemic.Third-quarter revenue grew 15% year over year \n",
       "as reported, \\nor 19% in constant currency, to $127.1 billion, compared with guidance of $125 billion to $130 \n",
       "billion. Currency \\ncontinued to worsen throughout the quarter, which crimped revenue growth.\\n SUMMARY: <coroutine\n",
       "object summarize_it at 0x1f7bc1d20>',\n",
       "    \"6: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.69 - IRRELEVANT answer -  Pii detected \n",
       "-Pandemic-\\nfueled growth last year in online stores and third-party seller services continued to slow to a 3% \n",
       "decline and 7% \\ngrowth year over year in the quarter, respectively, while physical stores continue to benefit from\n",
       "consumers \\nleaving their homes to shop and grew by 17% year over year. Unit growth was flat, but we view this as a\n",
       "mix \\nissue as shopping habits normalize. Amazon noted no consumer slowdown as macro factors such as inflation and \n",
       "\\nthe Russian invasion loom large. Compared with the year-ago period, subscription services slowed to 11% \\ngrowth,\n",
       "AWS posted strong 37% growth, and advertising decelerated to 23% growth. \\nAmazon Delivers Mixed Quarter, Light \n",
       "Guidance, and Prime Price Hike; FVE Steady at $4,100  Dan \\nRomanoff,Senior Equity Analyst,4 Feb 2022\\nWe are \n",
       "maintaining our fair value estimate for wide-moat Amazon at $4,100 per share, and despite shares rising \\n14% after\n",
       "hours, we still view shares as undervalued. We think the highlight of the quarter was Amazon's plan to \\nraise \n",
       "prices in the U.S.\\n SUMMARY: <coroutine object summarize_it at 0x1faaef220>\",\n",
       "    '7: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.69 - IRRELEVANT answer -  Pii detected -Still, we \n",
       "\\nsee shares as attractive.\\n \\nFourth-quarter revenue grew 9% year over year as reported, or 12% in constant \n",
       "currency, to $149.2 billion, \\ncompared with guidance of $140 billion to $148 billion. Currency improved during the\n",
       "quarter, which eased \\npressure on revenue growth. Compared with our model, online stores was light, while \n",
       "third-party seller services \\nwas well ahead, and other segments were in line to slightly ahead. From a retail \n",
       "perspective (all year over year, \\nas reported), revenue from online stores declined 2%, physical stores improved \n",
       "6%, third-party seller services \\ngrew 20%, and subscription services increased 13%. On the latter point, we’re \n",
       "impressed that Rings of Power \\nhelped draw in new Prime members.\\n \\nThe two most critical segments, AWS and \n",
       "advertising, grew 20% and 19% over the year-ago period, respectively. \\nManagement sees good customer additions \n",
       "within AWS and notes positive conversations about moving new \\nFinancial Summary and Key Statistics \\nActual \n",
       "Forecast\\n2021 2022 2023 2024\\nRevenue (USD Mil) 469,822 513,983 545,336 607,\\n SUMMARY: <coroutine object \n",
       "summarize_it at 0x1f79fb610>',\n",
       "    \"8: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.67 - IRRELEVANT answer -  Pii detected -In total, \n",
       "Amazon should grow at a 10% CAGR through 2027. We model GAAP operating margin \\nexpanding from 2% (actual) in 2021 \n",
       "to 6% in 2027 as the company grows into its expanded footprint and \\noptimizes its substantial investment in \n",
       "transportation.\\nEconomic Moat  Dan Romanoff, Senior Equity Analyst, 3 Jun 2022\\nWe assign a wide moat rating to \n",
       "Amazon based on network effects, cost advantages, intangible assets, and \\nswitching costs. Amazon has been \n",
       "disrupting the traditional retail industry for more than two decades while also \\nemerging as the leading \n",
       "infrastructure-as-a-service provider via Amazon Web Services. This disruption has been \\nembraced by consumers and \n",
       "has driven change across the entire industry as traditional retailers have invested \\nheavily in technology in \n",
       "order to keep pace. COVID-19 has accelerated change, and given the company's \\ntechnological prowess, massive \n",
       "scale, and relationship with consumers, we think Amazon has widened its lead, \\nwhich we believe will result in \n",
       "economic returns well in excess of its cost of capital for years to come.\\n SUMMARY: <coroutine object summarize_it\n",
       "at 0x1faaef140>\",\n",
       "    '9: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.66 - IRRELEVANT answer -  Pii detected -Overall, \n",
       "we do not see issues with the long-term story as Amazon remains well \\npositioned to prosper from the secular shift\n",
       "toward e-commerce and the public cloud over the next \\ndecade.Fourth-quarter revenue grew 9% (10% in constant \n",
       "currency) year over year to $137.4 billion, compared \\nwith guidance of $130 billion to $140 billion. \n",
       "Pandemic-fueled growth last year in online stores and third-party \\nseller services continued to slow to a 1% \n",
       "decline and 11% growth year over year in the quarter, respectively, \\nwhile physical stores enjoyed the benefit of \n",
       "easing lockdowns and grew by 17% year over year. The company \\ncontinues to suffer from labor issues and increasing\n",
       "shipping costs, although the impact from these items came \\nin as expected for the quarter. Still, operating profit\n",
       "came in better than we anticipated and above the high end \\nof the guidance range.Compared with the year-ago \n",
       "period, subscription services slowed to 15% growth, AWS \\naccelerated again to 40% growth, and advertising \n",
       "decelerated to 32% growth.\\n SUMMARY: <coroutine object summarize_it at 0x1f7bc1690>',\n",
       "    '10: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.66 - IRRELEVANT answer -  Pii detected -Currency \n",
       "\\ncontinued to worsen throughout the quarter, which crimped revenue growth. From a retail perspective, online \n",
       "\\nstores grew 7% year over year as reported, physical stores improved 10%, third-party seller services grew 18%, \n",
       "\\nand subscription services increased 9%. Prime Day was held in the third quarter of 2022, compared with the \n",
       "\\nsecond quarter in 2022, which resulted in an artificial 400 basis points of revenue growth for Amazon this \n",
       "\\nquarter. The two most critical segments, AWS and advertising, grew 27% and 25% over the year-ago period, \n",
       "\\nrespectively. AWS enjoyed strong backlog growth, but was proactively helping customers manage cloud \\ncomputing \n",
       "costs as the economy slows. Compared with our model, online stores, subscription services, and AWS \\ndrove the \n",
       "revenue miss. \\nAmazon Shows Signs of Life With Solid Results and Guidance; FVE $192  Dan Romanoff,Senior Equity \n",
       "\\nAnalyst,29 Jul 2022\\nAmazon reported good second-quarter top-line and bottom-line results which were ahead of \n",
       "FactSet consensus \\nexpectations and provided an encouraging revenue outlook for the third quarter.\\n SUMMARY: \n",
       "<coroutine object summarize_it at 0x1f79fb610>'\n",
       "]\n",
       "
\n" ], "text/plain": [ "\u001b[1m[\u001b[0m\n", " \u001b[32m'Amazon 2024 forecast? is deemed RELEVANT with max score: 0.80'\u001b[0m,\n", " \u001b[32m'1: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.80 - IRRELEVANT answer - Pii detected -Amazon’s \u001b[0m\n", "\u001b[32mfirst-quarter outlook \\nincludes $121 billion to $126 billion in revenue and operating income from breakeven to \u001b[0m\n", "\u001b[32m$4.0 billion, compared \\nwith FactSet consensus estimates of $125.5 billion and $4.0 billion, respectively. \u001b[0m\n", "\u001b[32mGuidance assumes 210 basis \\npoints of pressure from currency impacts. Included in operating profit guidance is \u001b[0m\n", "\u001b[32m$640 million of severance \\ncosts. which renders profitability guidance better than it appears at first glance. We \u001b[0m\n", "\u001b[32msee a path to continuous \\nmargin improvement over time, even as uncertain macro conditions weigh in the near \u001b[0m\n", "\u001b[32mterm.\\nBusiness Strategy & Outlook Dan Romanoff, Senior Equity Analyst, 3 Feb 2023\\nAmazon dominates its served \u001b[0m\n", "\u001b[32mmarkets, notably e-commerce and cloud services. It benefits from numerous \\ncompetitive advantages and has emerged \u001b[0m\n", "\u001b[32mas the clear e-commerce leader thanks to its size and scale, which \\nyield an unmatched selection of low-priced \u001b[0m\n", "\u001b[32mgoods for consumers.\\n SUMMARY: \u001b[0m\u001b[32m<\u001b[0m\u001b[32mcoroutine\u001b[0m\u001b[32m object summarize_it at 0x1faaee5e0>'\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m\"2: from AMZN_Morning Star_Transcript_Annual.pdf - score:0.79 - IRRELEVANT answer - Pii detected -Brian T. \u001b[0m\n", "\u001b[32mOlsavsky\\nSenior Vice President and Chief Financial Officer | Amazon.com, Inc.\\nHi, Mark. So, on the AWS growth \u001b[0m\n", "\u001b[32mrate, I'm not sure I can forecast for you with any level of certainty \\nwhat is going to happen beyond this \u001b[0m\n", "\u001b[32mquarter. This is a bit uncharted territories economically. And \\nas we mentioned, there's some unique things going \u001b[0m\n", "\u001b[32mon with the customer base. I think many in \\nthis industry are all seeing the same thing. So, I don't have a \u001b[0m\n", "\u001b[32mcrystal ball on that one, but we are \\ngoing to continue to work for -- to be there for our customers. And as I \u001b[0m\n", "\u001b[32msaid in the earlier \\ncomments, we do have new deals. We have new workloads coming to the cloud. The value was \u001b[0m\n", "\u001b[32m\\nthere, and whether there's short-term, perhaps short-term belt-tightening in the infrastructure \\nexpense by a \u001b[0m\n", "\u001b[32mlot of companies, I think, the long-term trends are still there, and I think the quickest \\nway to save money is to\u001b[0m\n", "\u001b[32mget to the cloud, quite frankly.\\nSo, there's a lot of long-term positive in tough economic times.\\n SUMMARY: \u001b[0m\n", "\u001b[32m\"\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m\"3: from AMZN_Morning Star_Transcript_Annual.pdf - score:0.74 - IRRELEVANT answer - Pii detected -beyond, but \u001b[0m\n", "\u001b[32mwe hope to make -- expect to make big improvements in 2023.\\nAndy Jassy\\nPresident and Chief Executive Officer | \u001b[0m\n", "\u001b[32mAmazon.com, Inc.\\nYeah. I'll start just at a broad level, priority wise, the connective tissue for everything we do\u001b[0m\n", "\u001b[32macross \\nthe Company, including in stores in North America is, we realize that we exist to make customers' \\nlives \u001b[0m\n", "\u001b[32mbetter and easier every day, and relentlessly invent to do you so, and being maniacally \\nfocused on the customer \u001b[0m\n", "\u001b[32mexperience is always going to be a top priority for us. At the same time, \\nand this is true in North America as \u001b[0m\n", "\u001b[32mwell as across the entire business, we're working really hard \\nto streamline our costs, and trying to do so, at \u001b[0m\n", "\u001b[32mthe same time, that we don't give up on the long-\\nterm strategic investments that we believe can meaningfully \u001b[0m\n", "\u001b[32mchange broad customer experiences, \\nand change Amazon over the long term.\\n SUMMARY: \"\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m'4: from AMZN_Morning Star_StockAnalystNote_20230203.pdf - score:0.72 - IRRELEVANT answer - Pii detected \u001b[0m\n", "\u001b[32m-Amazon continues to make progress on its excess expenses, particularly in improvements to the productivity of \u001b[0m\n", "\u001b[32m\\nthe fulfillment network and transportation. Management plans to continue to optimize operations throughout \u001b[0m\n", "\u001b[32m\\n2023.\\nWhile guidance was slightly shy of our model, we are not surprised, given the macro environment. However, \u001b[0m\n", "\u001b[32mwe \\nthink the continued AWS deceleration in January will be unnerving to investors. Amazon’s first-quarter outlook\u001b[0m\n", "\u001b[32m\\nincludes $121 billion-$126 billion in revenue and operating income from breakeven to $4.0 billion, compared with \u001b[0m\n", "\u001b[32m\\nFactSet consensus estimates of $125.5 billion and $4.0 billion, respectively. Guidance assumes 210 basis points \u001b[0m\n", "\u001b[32mof \\npressure from currency impacts. Included in operating profit guidance is $640 million of severance costs. \u001b[0m\n", "\u001b[32mwhich \\nrenders profitability guidance better than it appears at first glance. We see a path to continuous margin \u001b[0m\n", "\u001b[32m\\nimprovement over time, even as uncertain macro conditions weigh in the near term. K\\n SUMMARY: '\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m'5: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.71 - IRRELEVANT answer - Pii detected -We \u001b[0m\n", "\u001b[32mcontinue to believe long-term \\ngrowth driven by e-commerce proliferation, AWS, and advertising, but the near term \u001b[0m\n", "\u001b[32mis clouded by a variety of \\nmacroeconomic issues, including currency headwinds, high inflation, soaring energy \u001b[0m\n", "\u001b[32mcosts, and deceleration in \\nAWS. We can look through these issues but we believe they are likely to persist \u001b[0m\n", "\u001b[32mthroughout 2023, which \\ndecreases our confidence over the medium term as well. We are lowering our growth and \u001b[0m\n", "\u001b[32mprofitability \\nassumptions, and in turn our fair value estimate drops to $150 per share, from $192 previously. \u001b[0m\n", "\u001b[32mStill, we are not \\nready to throw in the towel on Amazon and we see shares as attractive, but clearly the company \u001b[0m\n", "\u001b[32mhas still not \\nfound stable footing on its path out of the pandemic.Third-quarter revenue grew 15% year over year \u001b[0m\n", "\u001b[32mas reported, \\nor 19% in constant currency, to $127.1 billion, compared with guidance of $125 billion to $130 \u001b[0m\n", "\u001b[32mbillion. Currency \\ncontinued to worsen throughout the quarter, which crimped revenue growth.\\n SUMMARY: '\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m\"6: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.69 - IRRELEVANT answer - Pii detected \u001b[0m\n", "\u001b[32m-Pandemic-\\nfueled growth last year in online stores and third-party seller services continued to slow to a 3% \u001b[0m\n", "\u001b[32mdecline and 7% \\ngrowth year over year in the quarter, respectively, while physical stores continue to benefit from\u001b[0m\n", "\u001b[32mconsumers \\nleaving their homes to shop and grew by 17% year over year. Unit growth was flat, but we view this as a\u001b[0m\n", "\u001b[32mmix \\nissue as shopping habits normalize. Amazon noted no consumer slowdown as macro factors such as inflation and \u001b[0m\n", "\u001b[32m\\nthe Russian invasion loom large. Compared with the year-ago period, subscription services slowed to 11% \\ngrowth,\u001b[0m\n", "\u001b[32mAWS posted strong 37% growth, and advertising decelerated to 23% growth. \\nAmazon Delivers Mixed Quarter, Light \u001b[0m\n", "\u001b[32mGuidance, and Prime Price Hike; FVE Steady at $4,100 Dan \\nRomanoff,Senior Equity Analyst,4 Feb 2022\\nWe are \u001b[0m\n", "\u001b[32mmaintaining our fair value estimate for wide-moat Amazon at $4,100 per share, and despite shares rising \\n14% after\u001b[0m\n", "\u001b[32mhours, we still view shares as undervalued. We think the highlight of the quarter was Amazon's plan to \\nraise \u001b[0m\n", "\u001b[32mprices in the U.S.\\n SUMMARY: \"\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m'7: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.69 - IRRELEVANT answer - Pii detected -Still, we \u001b[0m\n", "\u001b[32m\\nsee shares as attractive.\\n \\nFourth-quarter revenue grew 9% year over year as reported, or 12% in constant \u001b[0m\n", "\u001b[32mcurrency, to $149.2 billion, \\ncompared with guidance of $140 billion to $148 billion. Currency improved during the\u001b[0m\n", "\u001b[32mquarter, which eased \\npressure on revenue growth. Compared with our model, online stores was light, while \u001b[0m\n", "\u001b[32mthird-party seller services \\nwas well ahead, and other segments were in line to slightly ahead. From a retail \u001b[0m\n", "\u001b[32mperspective \u001b[0m\u001b[32m(\u001b[0m\u001b[32mall year over year, \\nas reported\u001b[0m\u001b[32m)\u001b[0m\u001b[32m, revenue from online stores declined 2%, physical stores improved \u001b[0m\n", "\u001b[32m6%, third-party seller services \\ngrew 20%, and subscription services increased 13%. On the latter point, we’re \u001b[0m\n", "\u001b[32mimpressed that Rings of Power \\nhelped draw in new Prime members.\\n \\nThe two most critical segments, AWS and \u001b[0m\n", "\u001b[32madvertising, grew 20% and 19% over the year-ago period, respectively. \\nManagement sees good customer additions \u001b[0m\n", "\u001b[32mwithin AWS and notes positive conversations about moving new \\nFinancial Summary and Key Statistics \\nActual \u001b[0m\n", "\u001b[32mForecast\\n2021 2022 2023 2024\\nRevenue \u001b[0m\u001b[32m(\u001b[0m\u001b[32mUSD Mil\u001b[0m\u001b[32m)\u001b[0m\u001b[32m 469,822 513,983 545,336 607,\\n SUMMARY: '\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m\"8: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.67 - IRRELEVANT answer - Pii detected -In total, \u001b[0m\n", "\u001b[32mAmazon should grow at a 10% CAGR through 2027. We model GAAP operating margin \\nexpanding from 2% \u001b[0m\u001b[32m(\u001b[0m\u001b[32mactual\u001b[0m\u001b[32m)\u001b[0m\u001b[32m in 2021 \u001b[0m\n", "\u001b[32mto 6% in 2027 as the company grows into its expanded footprint and \\noptimizes its substantial investment in \u001b[0m\n", "\u001b[32mtransportation.\\nEconomic Moat Dan Romanoff, Senior Equity Analyst, 3 Jun 2022\\nWe assign a wide moat rating to \u001b[0m\n", "\u001b[32mAmazon based on network effects, cost advantages, intangible assets, and \\nswitching costs. Amazon has been \u001b[0m\n", "\u001b[32mdisrupting the traditional retail industry for more than two decades while also \\nemerging as the leading \u001b[0m\n", "\u001b[32minfrastructure-as-a-service provider via Amazon Web Services. This disruption has been \\nembraced by consumers and \u001b[0m\n", "\u001b[32mhas driven change across the entire industry as traditional retailers have invested \\nheavily in technology in \u001b[0m\n", "\u001b[32morder to keep pace. COVID-19 has accelerated change, and given the company's \\ntechnological prowess, massive \u001b[0m\n", "\u001b[32mscale, and relationship with consumers, we think Amazon has widened its lead, \\nwhich we believe will result in \u001b[0m\n", "\u001b[32meconomic returns well in excess of its cost of capital for years to come.\\n SUMMARY: \"\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m'9: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.66 - IRRELEVANT answer - Pii detected -Overall, \u001b[0m\n", "\u001b[32mwe do not see issues with the long-term story as Amazon remains well \\npositioned to prosper from the secular shift\u001b[0m\n", "\u001b[32mtoward e-commerce and the public cloud over the next \\ndecade.Fourth-quarter revenue grew 9% \u001b[0m\u001b[32m(\u001b[0m\u001b[32m10% in constant \u001b[0m\n", "\u001b[32mcurrency\u001b[0m\u001b[32m)\u001b[0m\u001b[32m year over year to $137.4 billion, compared \\nwith guidance of $130 billion to $140 billion. \u001b[0m\n", "\u001b[32mPandemic-fueled growth last year in online stores and third-party \\nseller services continued to slow to a 1% \u001b[0m\n", "\u001b[32mdecline and 11% growth year over year in the quarter, respectively, \\nwhile physical stores enjoyed the benefit of \u001b[0m\n", "\u001b[32measing lockdowns and grew by 17% year over year. The company \\ncontinues to suffer from labor issues and increasing\u001b[0m\n", "\u001b[32mshipping costs, although the impact from these items came \\nin as expected for the quarter. Still, operating profit\u001b[0m\n", "\u001b[32mcame in better than we anticipated and above the high end \\nof the guidance range.Compared with the year-ago \u001b[0m\n", "\u001b[32mperiod, subscription services slowed to 15% growth, AWS \\naccelerated again to 40% growth, and advertising \u001b[0m\n", "\u001b[32mdecelerated to 32% growth.\\n SUMMARY: '\u001b[0m\u001b[39m,\u001b[0m\n", "\u001b[39m \u001b[0m\u001b[32m'10: from AMZN_MS_CompanyReport_Annual_20230203.pdf - score:0.66 - IRRELEVANT answer - Pii detected -Currency \u001b[0m\n", "\u001b[32m\\ncontinued to worsen throughout the quarter, which crimped revenue growth. From a retail perspective, online \u001b[0m\n", "\u001b[32m\\nstores grew 7% year over year as reported, physical stores improved 10%, third-party seller services grew 18%, \u001b[0m\n", "\u001b[32m\\nand subscription services increased 9%. Prime Day was held in the third quarter of 2022, compared with the \u001b[0m\n", "\u001b[32m\\nsecond quarter in 2022, which resulted in an artificial 400 basis points of revenue growth for Amazon this \u001b[0m\n", "\u001b[32m\\nquarter. The two most critical segments, AWS and advertising, grew 27% and 25% over the year-ago period, \u001b[0m\n", "\u001b[32m\\nrespectively. AWS enjoyed strong backlog growth, but was proactively helping customers manage cloud \\ncomputing \u001b[0m\n", "\u001b[32mcosts as the economy slows. Compared with our model, online stores, subscription services, and AWS \\ndrove the \u001b[0m\n", "\u001b[32mrevenue miss. \\nAmazon Shows Signs of Life With Solid Results and Guidance; FVE $192 Dan Romanoff,Senior Equity \u001b[0m\n", "\u001b[32m\\nAnalyst,29 Jul 2022\\nAmazon reported good second-quarter top-line and bottom-line results which were ahead of \u001b[0m\n", "\u001b[32mFactSet consensus \\nexpectations and provided an encouraging revenue outlook for the third quarter.\\n SUMMARY: \u001b[0m\n", "\u001b[32m\u001b[0m\u001b[32m'\u001b[0m\n", "\u001b[1m]\u001b[0m\n" ] }, "metadata": {}, "output_type": "display_data" } ], "source": [ "response = !curl -X POST \"http://localhost:8003/ask/\" -H \"Content-Type: application/json\" -d '{\"question\": \"Amazon 2024 forecast?\"}'\n", "print(json.loads(response[-1])['answer'])" ] }, { "cell_type": "code", "execution_count": 28, "metadata": {}, "outputs": [ { "data": { "text/html": [ "
Amazon's 2024 forecast is not explicitly provided in the given context. The information retrieved from the \n",
       "financial reports mainly focuses on Amazon's performance, outlook, and guidance for the first quarter of 2023, \n",
       "along with some insights into the company's long-term strategies and challenges. The reports discuss revenue, \n",
       "operating income, profitability guidance, market dominance in e-commerce and cloud services, cost optimization \n",
       "efforts, and the impact of various macroeconomic factors on Amazon's business.\n",
       "\n",
       "Therefore, based on the provided context, there is no specific mention or projection related to Amazon's forecast \n",
       "for the year 2024.\n",
       "
\n" ], "text/plain": [ "Amazon's \u001b[1;36m2024\u001b[0m forecast is not explicitly provided in the given context. The information retrieved from the \n", "financial reports mainly focuses on Amazon's performance, outlook, and guidance for the first quarter of \u001b[1;36m2023\u001b[0m, \n", "along with some insights into the company's long-term strategies and challenges. The reports discuss revenue, \n", "operating income, profitability guidance, market dominance in e-commerce and cloud services, cost optimization \n", "efforts, and the impact of various macroeconomic factors on Amazon's business.\n", "\n", "Therefore, based on the provided context, there is no specific mention or projection related to Amazon's forecast \n", "for the year \u001b[1;36m2024\u001b[0m.\n" ] }, "metadata": {}, "output_type": "display_data" } ], "source": [ "response = !curl -X POST \"http://localhost:8003/ragit/\" -H \"Content-Type: application/json\" -d '{\"question\": \"Amazon 2024 forecast?\"}'\n", "print(json.loads(response[-1])['answer'])" ] }, { "cell_type": "code", "execution_count": 14, "metadata": {}, "outputs": [ { "name": "stdout", "output_type": "stream", "text": [ "{\"answer\":\"3\"}" ] } ], "source": [ "!curl -X GET \"https://jpbianchi-mr.hf.space/ping/\"" ] }, { "cell_type": "code", "execution_count": 12, "metadata": {}, "outputs": [ { "name": "stdout", "output_type": "stream", "text": [ "{\"answer\":\"Yes, AT&T does have postpaid phone customers. The company added 813,000 postpaid phone customers during the quarter, marking the strongest second quarter performance in a decade. Additionally, the average revenue per postpaid phone customer grew by 1.1% compared to the previous year, with further improvements expected in the second half.\"}" ] } ], "source": [ "!curl -X POST \"https://jpbianchi-finrag.hf.space/ragit/\" -H \"Content-Type: application/json\" -d '{\"question\": \"Does ATT have postpaid phone customers?\"}'" ] }, { "cell_type": "code", "execution_count": 13, "metadata": {}, "outputs": [ { "name": "stdout", "output_type": "stream", "text": [ "{\"answer\":\"Amazon reported a pre-tax valuation loss of $2.3 billion in the fourth quarter, which was included in non-operating income from their common stock investment in Rivian Automotive. This loss was not related to Amazon's ongoing operations but rather stemmed from quarter-to-quarter fluctuations in Rivian's stock price.\"}" ] } ], "source": [ "!curl -X POST \"https://jpbianchi-finrag.hf.space/ragit/\" -H \"Content-Type: application/json\" -d '{\"question\": \"what is Amazon loss?\"}'" ] } ], "metadata": { "kernelspec": { "display_name": "venv", "language": "python", "name": "python3" }, "language_info": { "codemirror_mode": { "name": "ipython", "version": 3 }, "file_extension": ".py", "mimetype": "text/x-python", "name": "python", "nbconvert_exporter": "python", "pygments_lexer": "ipython3", "version": "3.10.14" } }, "nbformat": 4, "nbformat_minor": 2 }