Time To Watch Amazon's Prime Video

Nov. 21, 2024 5:24 AM ETAmazon.com, Inc. (AMZN) StockNFLX, AMZN6 Comments
Matthew Levy
253 Followers
(28min)

Summary

  • Amazon's Prime Video is poised to become a leading VOD service, significantly boosting Amazon's digital advertising revenue and offering a platform for new features like AI and targeted ads.
  • Despite Amazon's Q2 earnings disappointment, the company's diverse strengths in e-commerce, tech, and media, make it a compelling investment opportunity.
  • Prime Video's ad-supported model is expected to generate substantial revenue, with conservative estimates predicting a significant increase in Amazon's net income over the next few years.
  • Amazon's strategic investment in Prime Video and digital advertising positions it to capture a larger market share, leveraging its extensive reach and first-party data advantages.

Prime Video advertisement displayed prominently on a billboard in Times Square, New York.

Aziz Shamuratov /iStock Editorial via Getty Images

On February 5th, four days after Amazon (NASDAQ:AMZN) released their (impressive) fourth-quarter earnings, I published an article on Seeking Alpha titled Amazon: Gaining Momentum In The Streaming Wars. I have

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"In investing, what is comfortable is rarely profitable." - Robert Arnott I am a "Value" and "Growth" retail investor, looking for opportunities in emerging and undervalued stocks, often counter to conventional thought. I use fundamentals to back up my argument, and also like to highlight stocks which I believe to be overvalued. I have enjoyed nice gains from using my strategies, finding value in everything from Research in Motion, SuperValue, ZipCar, and ClearWire to Apple, Netflix, Tesla and Google (before they all jumped 60% - 2000% or more). I have been actively trading for more than a decade, focussing primarily on stocks. With the privilege of having lived in New York for many years, I have attended multiple shareholder meetings, conferences and sector exhibitions. Over time, I have found that I am particularly interested in innovation - across every sector. Being a small business owner, I enjoy seeing first hand how certain companies directly affect consumers, for better or worse, by doing my own research through channels such as assessing website and store traffic, eBay and other 3rd Party Website sell-through, and customer satisfaction/feedback. There are always good investments to be made, and I try to find them by looking for a combination of growth, unique opportunity, and value - to both shareholder, and arguably more importantly, to its own customers.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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