Amazon Ad Biz Upgraded By Billions, On Track To Become One Of The World's Biggest

Amazon is on track to be a nearly $20 billion advertising business -- ranking it among the world’s biggest ad-supported platforms -- in just two years' time, according to projections released Thursday as part of BMO Capital Research’s analysis of the e-commerce giant’s first-quarter earnings.

“This was the second most profitable quarter in the company's history and we believe the continued growth of the company's advertising business played a key role,” writes BMO’s Daniel Salmon in an analysis sent to investors Thursday.

Salmon upgraded his estimate for Amazon’s ad business to $9.5 billion in 2018 versus his prior estimate of $6.9 billion, and now projects that it will generate $18.6 billion in advertising revenues by 2020.

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