Hard to know what fmajid means - although mentioning revenue is a serious black flag. Google’s search is a cost-centre and their advertising is a profit-centre. You could say Amazon is similar because in 2021 AWS made all the income and e-commerce made zero income[1].
I would be interested to see an analysis of income per business sector*, including their advertising sector, for Amazon. fmajid would need that information to be able to make the conclusions they drew.
From article: “After selling $31 billion in ads last year, Amazon became the third-largest online ad company in the United States”
Hard to know what this means, since we can’t know how much it “cost” Amazon for those ads (especially the cost of consumer dissatisfaction as the article mentions, and what is opportunity-cost?)
* and ideally assets per sector as well, plus a metric for internal capital reinvestment (VC style).
I would be interested to see an analysis of income per business sector*, including their advertising sector, for Amazon. fmajid would need that information to be able to make the conclusions they drew.
From article: “After selling $31 billion in ads last year, Amazon became the third-largest online ad company in the United States”
Hard to know what this means, since we can’t know how much it “cost” Amazon for those ads (especially the cost of consumer dissatisfaction as the article mentions, and what is opportunity-cost?)
* and ideally assets per sector as well, plus a metric for internal capital reinvestment (VC style).
[1] https://www.investopedia.com/how-amazon-makes-money-4587523 Amazon unfortunately seems to only report on their segments: North America, International, and AWS.