Amazon's Advertising Tax

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

NASDAQ: AMZN

Amazon

Market Cap

$2,011B

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(-2.33%) -$4.60

Current Price

$193.25

Price as of June 28, 2024, 4:00 p.m. ET

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

Amazon (AMZN -2.33%) 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.

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.