Amazon projected to be a $1trn company by 2022, according to Jefferies
Wall Street firm Jefferies believes Amazon will be a $1trn company within the next four years.
The investment banking specialist has made the projection based on the growth it believes Amazon will achieve in its ad sales business between now and 2022.
Ad business will be worth $22bn to the Silicon Valley giant in four years' time according to Jefferies as it grows by 43% year-on-year from its current revenue figure of $4bn. This isn't the first time in recent months that Amazon have been touted as a possible $1trn company, however, with analysts from GBH Insights and Morgan Stanley making similar predictions.
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"We think advertising could become Amazon's most profitable revenue stream and similar to AWS [Amazon Web Services] afford opportunities to invest back into the core biz," Jefferies analyst Brett Thill wrote in a note to clients, reported CNBC. "We forecast Amazon reaching $1 trillion in market cap by 2022."
Last week, Business Chief reported that Amazon is reportedly in talks with a number of Wall Street’s leading banks as the company eyes a move into the banking sector.
Founder Jeff Bezos recently topped the Forbes’ Billionaires Rich List for 2018 ranking ahead of Microsoft’s Bill Gates and Berkshire Hathaway’s Warren Buffett, his estimated personal wealth standing at $112bn.