Market Overview

How Amazon's Ad Business Could Hit $22 Billion In 4 Years

How Amazon's Ad Business Could Hit $22 Billion In 4 Years, Inc. (NASDAQ: AMZN) has earned a reputation for excellence in the fields of e-commerce and cloud services. Its advertising business still has plenty of room for improvement, and one analyst sees it as a $22-billion opportunity for the company.

The Analyst

Jefferies analyst Brent Thrill reiterated a Buy rating on Amazon and raised the price target from $1,750 to $1,850.

The Thesis

Amazon is in prime position to ramp its advertising game in the years ahead, Thrill said in a Tuesday note.

Amazon seems to have prioritized advertising growth, and the company could soon join established online leaders Facebook Inc (NASDAQ: FB) and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) as the top names in online advertising, the analyst said. 

Thrill estimates that Amazon’s advertising revenue will grow 43 percent annually over the next five years, expanding from $4 billion in revenue today to $22 billion in revenue by 2022, which would still only account for less than 5 percent of the company’s total revenue by that time.

Amazon could singlehandedly account for about 8 percent of total U.S. digital advertising revenue by 2019, Thrill said. 

“Amazon's billions of touch points with consumers and end-of-funnel sales conversion are an advertiser's dream for targeting and attribution,” the analyst said. 

With all of Amazon’s major business segments firing on all cylinders, Thrill said the company should have no problem reaching a $1-trillion market cap within the next several years.

Price Action

Amazon’s incredible market run has continued so far in 2018. The stock is up another 17.9 percent year-to-date. Shares were slipping 0.86 percent to $1,584.71 at the time of publication Tuesday. 

Related Links:

This Day In Market History: The Microsoft IPO

Morgan Stanley: Tesla Investors Have A Profit-Taking Opportunity

Photo courtesy of Amazon. 

Latest Ratings for AMZN

Dec 2019AssumesBuy
Nov 2019Initiates Coverage OnHold
Oct 2019MaintainsMarket Outperform

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings

Posted-In: Brent Thrill JefferiesAnalyst Color Price Target Reiteration Top Stories Analyst Ratings Best of Benzinga


Related Articles (AMZN + FB)

View Comments and Join the Discussion!

Latest Ratings

TOLGoldman SachsInitiates Coverage On42.0
KBHGoldman SachsInitiates Coverage On36.0
YEXTSunTrust Robinson HumphreyMaintains28.0
LHCGSunTrust Robinson HumphreyMaintains160.0
DLRSunTrust Robinson HumphreyMaintains140.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

A Tariff Winner: Century Aluminum Upgraded By Cowen On 'Positive Outlook'

35 Stocks Moving In Tuesday's Mid-Day Session