Amazon.com is reportedly amping up its advertising business with a focus on local ads
June 9, 2022
Trending News 🌥️
Amazon Intrinsic Value – As one of the world’s largest tech and retail companies, Amazon.com ($NASDAQ:AMZN) is no stranger to advertising. According to Insider, Amazon has been advertising in major cities to build a Local Ads team to build relationships with local media. This is a rare move for the company, which typically relies on word-of-mouth and online marketing to promote its products and services. It remains to be seen how this increased focus on local advertising will affect Amazon’s market and earnings in the long term. However, it could be a wise move to build stronger relationships with local media outlets and customers in key markets.
Market Reaction
On Wednesday, Amazon stock opened at $122.6 and closed at $121.2, down 1.5% from the previous day’s close. This was a continuation of the stock’s downward trend, as investors remained concerned about the company’s future prospects.
VI Analysis – Amazon Intrinsic Value
As an investor, it is important to look at a company’s fundamentals in order to gauge its long term potential. The VI app makes this analysis simple by providing key data points and valuation tools. Based on the fundamentals, Amazon Intrinsic Value is around $170. However, the stock is currently trading at $120, undervalued with a margin of safety of 30%. This means that now might be a good time to buy.
Summary
The move comes as the company looks to diversify its revenue streams amid slowing growth in its core e-commerce business. The stock was down 1.5% following the news.
