Investors looking for Amazon's next big profit center should pay close attention to the advertising business.
eMarketer estimates that by the end of the year, Amazon could capture 9% of the overall digital ad market, second only to Google GOOGL (37%) and Facebook FB (22%).
And Amazon bulls feel pretty good about this. Why? The margins are very attractive.
PiperJaffray analyst Mike Olson estimated last year that Amazon's ad business has operating margins of 60% to 70%, and that by 2021, it could be bigger contributor to Amazon's bottom line than AWS.
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