Amazon.com (AMZN) Advertising Revenue Stream is Undervalued in 2021 Consensus - Needham

Needham & Company analyst Laura Martin reiterated a Buy rating and $3,700.00 price target on Amazon.com (NASDAQ: AMZN) on the belief that advertising revenue growth will be an important upside profit driver during 2021 and the magnitude is underestimated by the Street. Surveys in 3Q20 from several independent third party research organizations show that AMZN has been garnering product search share from Google and other search engines during 2020.

The analyst stated "Growing product search share attracts more advertisers and improves conversion rates, which attracts more advertisers. We estimate that AMZN's conversion rate of product-advertising to product-purchase is 2x higher than Google search, and that AMZN's growing share of product advertising will be a key fundamental upside driver for AMZN in 2021."

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $3159.80 yesterday.

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