During more than two decades, Jeff Bezos contributed profit for the company’s growth, trying to persuade Wall Street that Amazon.com Inc. is the best company for investment. Just recently, the investors calmed down because of the profits from cloud services of the company that allowed reimbursing the losses in electronic commerce. Nevertheless, for the last five years, the average Amazon’s profit decreased by 1%, Finance.ua reports quoting Bloomberg.
Now, the next in turn is the business, which allows obtaining the stable profit – advertising. For the last several year, Bezos&Co developed its marketing platform, which allowed Amazon obtaining the income from the large audience.
Making a bid on cloud services Amazon and providing impetus for the growth of shares up to 1,300 dollars, the investors became interested in the idea of creating the advertising business, as it does not require large financial investment in new data-center and cargo shipments.
In addition, the advertising business will allow obtaining a large profit. On Monday, Capital Markets increased Amazon’s price target to 1,600 USD per share, mainly through the growth of advertising business. According to analysts, the cost of one Amazon’s share can exceed 2,000 dollars – in such case, the company will become the first company with market value, amounting to trillion dollars.
