Amazon is the third largest advertising company after Google and Meta. Its ad revenue is $32B (and growing fast, the run rate is $40B). That is half the revenue of AWS, which is worth 70% of Amazon's market cap. The inescapable conclusion is that Amazon's advertising is worth the remaining 30% of Amazon's market cap and Amazon's e-commerce arm is deemed worthless by Wall Street, its only purpose being to support the advertising business, just what Google Search is to Alphabet.
Think on that for a moment. The other inescapable conclusion is that whenever the quality of the shopping experience on Amazon and the needs of Amazon's advertising business clash, advertising will win (just as it has on Google). That's an even more foregone conclusion since Andy Jassy took on the top job, he's from AWS and owes no special allegiance to the historical e-commerce business.
Think on that for a moment. The other inescapable conclusion is that whenever the quality of the shopping experience on Amazon and the needs of Amazon's advertising business clash, advertising will win (just as it has on Google). That's an even more foregone conclusion since Andy Jassy took on the top job, he's from AWS and owes no special allegiance to the historical e-commerce business.