Amazon’s (AMZN, $1,938.43) digital advertising sales drop 36%, analysts not too alarmed
Amazon’s advertising sales fell 36% for a total of $2.72 billion in the first quarter. On an adjusted basis, the y-o-y growth of this ‘Other’ segment in Q4 2018 stood at 38%, while the same ranged between 51% and 73% in previous quarters last year.
Amazon initially saw good success in its advertising segment and became a major contender to Google and Facebook. But that has faded this year and advertisers are saying that they are now focussing on building strategies and weighing how well Amazon fits into them.
On the other hand, Google (GOOGL) has been dominating the digital advertising ecosystem and has optimized its features, providing high returns for investors. Analysts also believe that the reason for the slash in Amazon’s digital advertising sales could be due to the fact that sellers on the platform may have decided to keep their spend steady, instead of increasing it.
Analysts also believe that opening their eyes to other e-commerce players like Walmart, Target or Kroger could be a part of the advertisers’ strategy of limiting their spend on Amazon.
However, some analysts view 36% drop as not too alarming as Amazon is ramping up its digital advertising capabilities, and future numbers are likely to exceed the Q1 number.
Momentum Indicator for AMZN turns positive, indicating new upward trend
AMZN saw its Momentum Indicator move above the 0 level on September 15, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 77 similar instances where the indicator turned positive. In of the 77 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
AMZN moved above its 50-day moving average on August 22, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for AMZN crossed bullishly above the 50-day moving average on August 15, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 288 cases where AMZN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 71 cases where AMZN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMZN turned negative on September 12, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 54 similar instances when the indicator turned negative. In of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMZN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AMZN broke above its upper Bollinger Band on September 04, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. AMZN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.402) is normal, around the industry mean (6.256). P/E Ratio (35.308) is within average values for comparable stocks, (46.515). Projected Growth (PEG Ratio) (2.053) is also within normal values, averaging (1.554). Dividend Yield (0.000) settles around the average of (0.064) among similar stocks. P/S Ratio (3.726) is also within normal values, averaging (12.335).
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General Information
a provider of on-line retail shopping services
Industry InternetRetail
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