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Having a large and engaged user base is a massive asset and many of our tech titans are in this fortunate position. Every now and then they launch a new product, and if it's a success, it grows incredibly quickly. Amazon's advertising business is a great example of this.
Having direct access to consumer shopping data is very valuable to advertisers. Analysts now estimate that advertising was 7% of Amazon's 2021 revenues after growing 50% in the year. A few years back, online advertising was a two horse race between Facebook and Google.
The beauty of being a shareholder of these amazing businesses is that you can sit and watch them create new businesses from scratch. You can follow its development from a simple idea, to a big top-line mover. Launching these "side bets" comes at very little risk because the main business is in such great shape. Lovely to be a shareholder.
