Elazar was launched in 2004 by Chaim Siegel and has served famous hedge fund clientele who demand a keen understanding of drivers of individual companies and financial markets. Chaim twice worked for renowned trader Steve Cohen of then-SAC Capital (now Point72). He was also a partner at JLF Asset Management which was funded by George Soros. Previously he was one of seven analysts on a $13B mutual fund at Morgan Stanley Asset Management. Elazar Advisors publishes its research into the Reuters/Refinitiv Institutional Platform and Factset where Elazar's earnings estimates are factored into the Street earnings numbers.  Elazar's research is used regularly by fundamental and algorithmic traders and investors at some of the largest mutual fund and hedge fund managers in the world. Chaim has been a 5-Star top ranked analyst in Tesla and other big cap tech companies. Try us with a  free trial here . All investments have many risks and can lose principal in the short and l

Amazon's New Earnings Driver Confirmed

We recently identified Amazon's secret new earnings driver, advertising. Discovering it made a big difference in our earnings trajectory and earnings model. Amazon just confirmed that advertising is about to get even more important.

The "Other" Line Item Drives Upside Surprise

In Amazon's recent earnings release on Page 13 their "other" line-item was up over 100%. That was advertising and it accounted for $2B. A pure margin business driving their more-capital intensive North America division improves the earnings model and margin profile.

It gave us visibility that the 93% jump in North American profits was not a fluke.

And we have confirmation...

Amazon Taking on Google

Bloomberg caught Amazon offering a retargeting tool to merchants competing with Google and Facebook that have ads follow potential customers around the web.

Alibaba's core ecommerce business has allowed merchants the ability to rise in search through ads for years.  Amazon's now full steam ahead in this "newer" business driver.

Ad Model Earnings Driver Confirmed

Matching the Bloomberg news in context with our recent earnings driver findings confirms that Amazon is expanding its arsenal in the ad space. And that's a big plus for earnings potential.

They were proud to say on the last earnings call, "It's now a multi-billion dollar program and growing very quickly."

Really we shouldn't be surprised that they are racing to exploit advertising synergies with their merchants.

Conclusion

We have $24.50 in EPS for 2019 versus the Street's $19.89.  Because of this added earnings driver our earnings for 2018 are expected to be up about 200%. We think this stock still has a good shot at going nuts to the upside.



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All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless. Model portfolio trades and positions are hypothetical to be used for directional analysis and ratings purposes. Elazar and its employees do not take individual stock positions to avoid front running and other potential customer related issues.

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