Amazon to carry on taking share of digital advertising spending

Wedbush maintained an Outperform rating on Amazon and increased its price target to $210 from $180 in a letter to clients on Thursday.

Amazon is expected to bring in $46.5 billion from advertising in 2023, according to Wedbush analysts, who also believe that "the company is well positioned to continue taking a share of global digital advertising spending over a multi-year period."

In addition, Wedbush thinks that Amazon's advertising opportunity is still in its early stages of expansion after closely examining the size of the company's advertising platform and assessing the direction of the internet giant's most recent product releases.

"As the year comes to a close, we are increasingly optimistic about Amazon’s advertising opportunity heading into 2024 supported by: (1) secular tailwinds favouring retail media, (2) growth in CTV and video ad formats within Amazon’s properties, (3) growth of off-platform ad sales, and (4) greater adoption of Amazon’s advertising products among non-endemic advertisers," the analysts said.

Wedbush's #1 choice across its online coverage is still Amazon.

(Sources: investing.com, reuters.com)