12 Feb WHAT IS AMAZON HIDING?
What is Amazon hiding?
Amazon just announced great quarterly numbers. In their press release, they mentioned 40 business highlights.
Yet, they hid the most important one.
The role advertising is playing in their business.
Not one highlight mentioned advertising.
Is it because advertising sales are unimportant to Amazon?
Amazon did $14B in ad sales last year. $4.8B just last quarter.
It was the fastest growing segment for Amazon.
And its most profitable – representing all the profits of the North America (NA) retail business.
Based upon Amazon’s P/E Ratio of 89x…
The cap value of Amazon’s ad business is somewhere above $500B.
But no mention in the press release.
And no material mention in the 10Q.
Their $14B business, that represents half their cap value, is hidden under “other”
Because Amazon is now a media company, not a retailer.
And they don’t want people to know it.
They don’t want competitive retailers to know – or they might compete.
You might be one of them.
But now you know.