Understanding This Quiet Yet Powerful Catalyst for Amazon Stock Is Key to the Bull Thesis (Hint: It's Not AWS)

Amazon (NASDAQ: AMZN) is best known for its e-commerce empire and its highly profitable cloud arm, Amazon Web Services (AWS). The tech giant's shares have rallied over the last year, lifting the company's market cap to more than $2.3 trillion as of this writing. That strength reflects solid execution across the business and optimism about the company's growing role in artificial intelligence (AI). Yet one driver often takes the back seat to AWS: advertising.Advertising is now a sizable, fast-growing revenue line that benefits from Amazon's unmatched data, the shopping intent of visitors, and its expanding media footprint. Further, ad revenue accelerated again in Q2, and recent management commentary points to more opportunity ahead. Put simply, advertising is an important reason the long-term investment case remains compelling.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool