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Amazon will Soar More as it Becomes a ‘Third Force’ in Advertising

Amazon which is the largest e-commerce as well as the largest retailer is huge but the company is not over with the expansion of its business. This view is of the analysts who have seen that the stocks are rising in the current year.

An analyst’s review

A senior analyst at Pivotal Research, Brian Wieser, stated in a note to the clients which was released late on Sunday that despite the massive size of Amazon which it holds currently, they have been seeing the opportunities of Amazon to be unconstrained.

Brian Wieser is an analyst at Pivotal Research Group
Source: Beet TV

This is based on the track record of the capitalization of company which has been very successful. The capitalization of the company is on the consumer and the spending of the IT department.

Brian Wieser is renowned for forecasting the troubles for Facebook as well as Snap. He has oinitiated the coverage of the firm on the stocks of the company with the rating of “buy”.

Wieser has also given the price target which is the year-end target to be $1920. This simply implies a rally of more or less 22 percent from the closing price of Friday which was $1575.39.

The advertising business of Amazon

The largest e-commerce retailer is very well positioned in the advertising business of itself According to Wieser the advertising business of Amazon is growing much faster than any other revenue stream of the company.

Wiser stated that the company has generated $9 billion as revenue which was estimated from its business of advertising in the year 2018. The bulk of this revenue ran in the United States.

The analyst also stated that the physical stores which are also known as the brick and mortar stores have now become extremely important to the company.

The physical stores of Amazon
Source: CDN

According to other analysts as well the company needs to bolster its physical presence as well in the long run. This is so that the company succeeds in the long run.

According to Business Insider, a tech analyst at Loup Ventures, Gene Munster had told it that the e-commerce giant acquiring Target makes sense only for this reason.

Source: Business Insider, Flipboard

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Written by Ketakee Srivastava

I am an amateur content writer, who is currently pursuing a Masters in Finance from ICFAI Business School. In this highly volatile Business Market, I find no better way to keep myself updated than to write about it and reflect my own thoughts as words.

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