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Amazon's Advertising Tax

Advertising has become a big moneymaker for Amazon, but at what cost?

By Travis Hoium – May 29, 2024 at 9:23AM EST

Amazon (AMZN 0.47%) is known for its e-commerce business, but did you know that the advertising with each search is where Amazon really makes money? In this video, Travis Hoium shows how Amazon's advertising business compares to e-commerce profits and why the incentives matter long-term.

*Stock prices used were end-of-day prices of May 26, 2024. The video was published on May 28, 2024.

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About the Author

Travis Hoium
Travis Hoium is a contributing Motley Fool stock market analyst covering solar energy, technology, and growth stocks. Before The Motley Fool, Travis was a mechanical engineer at 3M and founded a virtual reality company. He holds a bachelor’s degree in mechanical engineering and a master’s degree in business administration from the University of Minnesota.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Stocks Mentioned

Amazon Stock Quote
Amazon
NASDAQ: AMZN
$208.88
(-0.47%)-$0.99

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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