Amazon stock (NASDAQ: AMZN) is currently trading at the $268 level and had a phenomenal run in 2026. It surged nearly 19% year-to-date and is among the most profitable Magnificent 7 stocks. It recently beat all market expectations in the Q1 earnings call as AWS grew 28% year-over-year, reaching $37.6 billion. However, there is one silent profit machine that is delivering billions to the e-commerce giant.
Amazon’s ad business is much different than that of Google and YouTube and is mostly business-focused. The margins are now going higher every year, with businesses willing to shell out more to make their brand stand out on the website. The recent earnings call showed that ad revenue grew 24% last quarter, without the company having to do any heavy lifting.Amazon earned $70 billion from its ad space, which could soon boost its stock prospects.
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Search has become a multi-billion-dollar revenue stream for Amazon, similar to Google and YouTube. Amazon stock is a gold mine, as the ad revenues would only increase each year. Consumerism is at a higher rate, with social media influencing people to buy products and splurge. This includes fashion, home decor, and gadgets, which are highly purchased. Online shopping is highly influential as thousands of influencers are also pushing people to purchase on the website.
Source: Watcher Guru
