Why UBS is Raising Its Amazon Price Target to $1600

The transcript discusses Amazon's market performance, highlighting its success over the holidays and the positive response from analysts, including price target upgrades. Despite not being profitable, Amazon's future profitability is expected to improve due to various profit drivers. The company's nascent but rapidly growing advertising business is also explored, emphasizing its unique position in digital advertising and potential for significant growth.

What was the new price target set by UBS analyst Eric Sheridan for Amazon shares?

• $1500

• $1620

• $2000

• $1800

What is a major concern for Amazon despite its positive market performance?

• High employee turnover

• Decreasing market share

• Lack of innovation

• Profitability

According to Eric Sheridan, what is expected to drive Amazon's profitability in the coming years?

• Increased advertising revenue

• Expansion into new markets

• Cost-cutting measures

• Revenue growth and investment strategies

What unique advantage does Amazon have in the digital advertising space?

• Low advertising costs

• A large network of advertisers

• Identity and intent data

• Exclusive partnerships with major brands

By how much is Amazon's advertising business expected to grow from 2017 to 2018?

• Decrease slightly

• Double in size

• Remain the same

• Triple in size