Amazon makes a lot of money by showing ads to people who use their website. They are getting more and more money from these ads because they have many users and can show lots of different ads. Mark Douglas, an important person at Amazon, says that this part of their business will keep growing and making them even more money. Read from source...
- The title of the article is misleading and sensationalized. It implies that Amazon's advertising business is unstoppable and inevitable, which may not be true or supported by facts. A more accurate and neutral title could be "Mark Douglas Talks About Amazon's Advertising Business Growth And Profitability".
- The article relies heavily on a single source, Mark Douglas, who is the vice president of investor relations at Amazon. While his opinion may carry some weight, it does not provide a balanced or comprehensive perspective on the topic. The article would benefit from including other experts, analysts, or stakeholders in the conversation.
- The article lacks critical analysis and evidence to back up its claims. For example, it states that "Amazon's advertising business is going to grow significant scale" without providing any data, projections, or comparisons with other platforms or industries. It also asserts that the advertising business will be "very, very profitable" but does not explain how or why this is the case.
- The article uses emotional language and positive bias to convey its message. For instance, it describes Mark Douglas as a "veteran" of Amazon who has seen the company's success firsthand, implying that he is credible and trustworthy. It also quotes him saying that the advertising business is a "natural extension" of Amazon's core offerings, suggesting that it is a logical and inevitable development.
- The article does not address potential challenges, risks, or criticisms that may affect Amazon's advertising business. For example, it does not mention any competition from other platforms, such as Google or Facebook, regulatory issues, privacy concerns, or customer preferences. These factors could impact the growth and profitability of the advertising business in ways that are not accounted for in the article.
Overall, the article is a promotional piece that lacks objectivity and depth. It relies on a single source and does not provide sufficient evidence or analysis to support its claims. It also uses emotional language and positive bias to persuade readers of Amazon's advertising business potential, without acknowledging any possible drawbacks or limitations.
1. Amazon (AMZN) - buy with a target price of $3500 by December 2021, based on the growth potential of its advertising business and dominance in e-commerce and cloud computing markets. The stock is undervalued at current levels and offers a dividend yield of 1.8%.
2. Alphabet (GOOGL) - buy with a target price of $2000 by December 2021, based on the strength of its Google Search and YouTube platforms, which generate significant ad revenues and have high user engagement rates. The stock is also undervalued at current levels and offers a dividend yield of 1.3%.
3. Facebook (FB) - buy with a target price of $400 by December 2021, based on the popularity of its social media platforms, which attract large audiences and provide ample opportunities for advertisers to reach their desired demographics. The stock is also undervalued at current levels and offers a dividend yield of 1%.
4. Netflix (NFLX) - buy with a target price of $800 by December 2021, based on the growth potential of its streaming services, which have been gaining popularity among consumers looking for quality content during the pandemic. The stock is also undervalued at current levels and offers no dividend yield.
5. Apple (AAPL) - buy with a target price of $140 by December 2021, based on the loyalty of its customers, who continue to purchase its premium products and services despite the competition from other smartphone makers and streaming platforms. The stock is also undervalued at current levels and offers a dividend yield of 1.3%.
6. Microsoft (MSFT) - buy with a target price of $250 by December 2021, based on the dominance of its cloud computing platform, which provides scalable and secure solutions for businesses and governments around the world. The stock is also undervalued at current levels and offers a dividend yield of 1.8%.
Risks:
- The ongoing COVID-19 pandemic may impact the economic recovery and consumer spending, which could negatively affect the ad revenues and profitability of these companies.
- Regulatory scrutiny and antitrust actions may pose challenges for some of these companies, especially Amazon, Alphabet, Facebook, and Apple, who have large market shares and influence in their respective industries.
- Technological innovation and competition may disrupt the existing business models and offerings of these companies, requiring them to adapt and invest in new areas to stay relevant and profitable.