Is Amazon Ads Set to Grow Even Bigger Through 2025 and Beyond?

From Nasdaq: 2025-06-12 12:42:00

Amazon’s AMZN Ads platform allows brands to connect with customers across various platforms, generating $13.9 billion in revenue in Q1 2025. With tools like the new AI video generator, Amazon aims to enhance ad performance and reach more users, competing with Meta’s META and Alphabet’s GOOGL in the digital ad space.

Despite underperforming the market, AMZN stock trades at a forward 12-month Price/Sales ratio of 3.13X. The Zacks Consensus Estimate for Q2 2025 earnings is $1.34 per share, indicating a 8.94% year-over-year growth. Amazon.com, Inc. is focused on expanding its ad business and improving ad tools with new AI features.

The consensus estimate for Amazon’s 2025 earnings is $6.31 per share, showing a 14.1% year-over-year growth. With a Zacks Rank #3 (Buy), Amazon continues to innovate and enhance its ad platform to compete with industry leaders. The company’s performance and valuation metrics position it for potential growth in the future.



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