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Amazon’s ‘crown jewel’ is this business that doesn’t get nearly enough attention 

1. Amazon's ad business is growing rapidly, projected at 20% YoY growth since 2019. 2. Analyst Laura Martin believes advertising could surpass AWS and e-commerce in importance. 3. Amazon's ad segment yields 70% operating margins, outpacing AWS's profitability. 4. The ad business is crucial as it uses first-party shopping data for targeted ads. 5. Amazon's advertising revenue contributes over 50% of the company’s total operating income.

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FAQ

Why Bullish?

The increasing growth and profitability of Amazon's ad business suggest strong future performance, similar to past surges in tech stocks driven by new revenue streams.

How important is it?

The ad business's growth suggests long-term strategic importance and immediate impact on investment sentiment, influencing stock valuations.

Why Short Term?

The positive sentiment around advertising growth may boost stock prices in the near term, as investor focus shifts to ad contributions.

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