Analysts argue that Amazon’s advertising potential is just beginning
- Wedbush analysts maintain Outperform rating on Amazon.com
- Amazon on pace to generate $46.5 billion of advertising revenue in 2023
- Advertising opportunity remains early in its development
- Multiple factors driving advertising opportunity
- Stock has soared 81% this year
Wedbush analysts maintain their Outperform rating on Amazon.com and believe that the advertising opportunity at the retail giant is still in its early stages. They predict that Amazon is on track to generate $46.5 billion of advertising revenue in 2023 and is well positioned to continue gaining market share in the global digital advertising industry. Factors such as the addition of advertising to Prime Video and the company’s organic gross merchandise volume growth contribute to a sustainable runway of advertising revenue growth. The stock has already risen 81% this year, and analysts expect it to perform well in the future as retail margins rise, Amazon Web Services accelerates, and advertising revenue continues to outperform the broader industry. Wedbush considers Amazon its top pick across internet coverage.
Public Companies: Amazon.com (AMZN)
Private Companies:
Key People: Scott Devitt (Analyst)
Factuality Level: 8
Justification: The article provides information from Wedbush analysts who maintained their Outperform rating on Amazon.com and raised their price target. The article also mentions the potential advertising opportunity at Amazon.com and factors driving that opportunity. The information provided is specific and based on the analysts’ report.
Noise Level: 3
Justification: The article is focused on the analysis and predictions of Wedbush analysts regarding Amazon’s advertising opportunity. It provides specific details about their rating, estimates, and price target. The article stays on topic and does not dive into unrelated territories. However, it lacks evidence, data, or examples to support the analysts’ claims and does not provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information about Amazon.com and its advertising opportunity, which could impact the company’s financial performance.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the financial prospects of Amazon.com and its potential for advertising revenue growth, but there is no mention of any extreme events.
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