Amazon's Advertising Business Is Firing on All Cylinders
When Snap (NYSE: SNAP) reported earnings last month, the company's weaker-than-expected top-line momentum spooked investors, leading to a sell-off of almost all digital advertising stocks. The company cited recent changes to iOS ad tracking and measurement, as well as inventory shortages, as reasons marketers weren't spending as much as expected. Snap said this trend would be particularly pronounced in Q4, reflected in revenue guidance that was well below analysts' expectations.
While some digital advertising companies similarly reported weaker-than-expected third-quarter revenue, there have been exceptions. Consider Spotify (NYSE: SPOT). The company's third-quarter top line came in ahead of analyst estimates, helped in part by surging advertising revenue; its advertising revenue jumped 75% year over year.
But there's another advertising juggernaut faring extremely well that many have been overlooked recently: Amazon's (NASDAQ: AMZN) ad business, which brings in billions of revenue for the company every quarter.
Source Fool.com
