Amazon emerging as a force in ads, but we remain cautious on the stock


Amazon Web Services logo at the Web Summit in Lisbon.

Henrique Casinhas | Sopa Images | Lightrocket | Getty Images

Amazon‘s (AMZN) advertising business is emerging as a primary competitor to Alphabet (GOOGL) and Meta Platforms (META), according to a new Wall Street survey. While encouraged by the growth in its ad business, we still don’t think the tech and e-commerce giant has done enough to cut costs to protect margins.