"Amazon's advertising business now generates more than $70 billion in trailing-12-month revenue and is still compounding in the low-20s percentage range, making it a key earnings driver."
"In Amazon's first quarter, advertising services revenue reached $17.2 billion, up 24% year over year, marking the fourth consecutive quarter of 22% currency-neutral growth."
"While the company doesn't break out advertising's operating income, it is widely considered a high-margin business, which is significant given Amazon's reliance on low-margin retail."
"The company's first-quarter operating margin reached 13.1%, the highest ever for Amazon, reflecting the positive impact of its high-margin businesses like AWS and advertising."
Amazon's shares have recovered, reaching all-time highs after strong first-quarter results. Amazon Web Services (AWS) grew 28% year over year, but the advertising business is also crucial. It generated $17.2 billion in revenue, marking a 24% increase year over year. This segment is considered high-margin and positively impacts Amazon's overall earnings. The company's operating margin reached a record 13.1% in Q1, indicating strong profitability. Continued growth in both AWS and advertising could sustain this momentum.
Read at The Motley Fool
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