Amazon's 'crown jewel' is this business that doesn't get nearly enough attention
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Amazon's advertising division, termed its 'crown jewel' by Needham analyst Laura Martin, significantly contributes to the company's operating income, accounting for over 50%. Despite being less than 10% of total sales, the ad business has shown a 20% year-over-year growth since 2019, making it the third largest globally. With high operating margins of around 70%, it outperforms Amazon Web Services (AWS) in profitability. Martin emphasizes the importance of this segment for Amazon's future growth, especially as it integrates retail data for targeted advertising.
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