1. Amazon's focus on third-party sales, advertising, and cloud services should drive further growth; 2. Despite predicting rather pessimistic growth rates, the company is currently trading at fair value; 3. With realistic growth and profitability metrics, Amazon could offer additional potential of up to 95%.
Recent #Advertising news in the semiconductor industry
1. Amazon's growth is driven by AI-related cloud demand and ad revenue, with AWS and advertising becoming major profit contributors. 2. Robotics and automation in retail are improving margins, with significant cost savings seen in fulfillment centers. 3. Regulatory scrutiny and competition from Microsoft and Google are key risks, but the overall risk/reward proposition is interesting.
➀ Valve has updated its terms of service to ban games that force players to watch ads; ➁ The move aims to preserve the Steam experience and prevent it from becoming a haven for mobile-style, ad-filled games; ➂ Developers must find alternative ways to monetize their games instead of relying on incentivized ads.
➀ Valve更新了其Steamworks文档，新增了专门的“Steam上的广告”页面，进一步阐明其反对在Steam上投放广告的立场；
➁ 官方页面明确指出，开发者不应将付费广告作为其游戏业务模式，如要求玩家观看或参与广告以进行游戏，或将游戏玩法与广告隔离；
➂ 虽然Steam上仍允许有限度的广告，但这些广告通常是产品推广、交叉推广和Steam外游戏的付费广告。
➀ Microsoft Advertising recently presented at CES 2025 about the future of Xbox and the potential for ad-supported game delivery.
➁ Microsoft believes that ads could be a means to make gaming accessible to everyone, similar to how other forms of entertainment have scaled globally.
➂ The partnership with King and Xandr positions Microsoft to potentially lead the evolution of advertisements in the video games industry.
➀ Microsoft has made it easier to manage ads in Windows 11; ➁ The update involves a new 'Recommendation & Offers' page in the Settings app; ➂ The change aims to provide clearer options for users to control personalized ads and recommendations.
1. Amazon's advertising segment is becoming increasingly important for stock performance; 2. Amazon has broken the digital advertising duopoly of Google and Meta; 3. The company is investing heavily in AI chips and AI tools for advertisers; 4. Amazon is well-positioned to expand margins through AI and robotics; 5. The stock is reasonably priced compared to peers.
➀ This article discusses an advertisement placed by Elliott Brothers 64 years ago in Electronics Weekly; ➁ The ad was for transistorized power packs; ➂ The article highlights the historical significance of this ad in the context of electronics and technology development.
➀ Google generated $238 billion in revenue from its advertising segment in 2023, representing 77% of Alphabet’s overall revenue. ➁ The US anti-trust lawsuit against Google began on September 9, 2024. ➂ Despite significant market share, competitors like Yandex and Baidu generate only a fraction of Google’s advertising revenue.
1. Amazon's advertising business reached over $50 billion in trailing twelve months revenue, potentially valuing this segment at close to $900 billion. 2. AWS revenue growth and margin expansion have significantly improved operating income. 3. Despite a slight revenue miss, Amazon's stock is trading at a forward PE ratio cheaper than peers, making it an attractive long-term investment.
1. Meta's Q2 report highlights the company's effective use of AI to enhance ad spending and user engagement, resulting in strong financial results. 2. The introduction of advanced AI models like Meta Lattice and Llama 3.1 positions Meta as a leader in AI technology. 3. Despite potential legal challenges and recession risks, Meta's robust financial health and strategic AI initiatives make it a strong long-term investment.
1. Apple has canceled another controversial ad after facing backlash from Thailand for misrepresenting the country. 2. The ad, part of Apple's 'The Underdogs' series, was criticized for portraying Thailand as underdeveloped and outdated. 3. Apple has issued an apology and pulled the ad from screens, ensuring it is no longer aired.
1. Apple is considering introducing an ad-supported tier for Apple TV Plus, similar to competitors like Netflix and Amazon Prime Video. 2. This move could lower the subscription cost back to the original $4.99 a month. 3. The introduction of ads may also lead to other differences in subscription tiers, such as limited device usage or lower streaming quality.
1. Meta Platforms is expected to report Q2 earnings on July 24th, with anticipated revenue and earnings exceeding consensus estimates. 2. The company's strong consumer engagement and robust advertising momentum, driven by AI efforts, are key factors. 3. Capital allocation guidance and maintaining buyback pace will be crucial for share price movement despite positive earnings momentum.
1. Apple has launched a new ad campaign called 'Flock' to promote Safari and highlight privacy concerns associated with other browsers, particularly Google's Chrome. 2. The ad emphasizes that browsing on an iPhone with Safari ensures privacy, contrasting with the perceived data collection practices of Chrome. 3. Apple suggests users switch to privacy-focused search engines like DuckDuckGo and Ecosia, even when using Safari, as Google remains the default search engine on iPhones.
1. Ed, the former CEO, has become a celebrity in the US due to his appearance in an AI-enabled toothbrush ad. 2. He is now considering endorsements and has a US agent promoting his media career. 3. Ed is looking to maintain a balance between his newfound fame and his political aspirations in the UK.