The immense potential for advertising on is just starting to unfold, according to a Wall Street team led by Scott Devitt from Wedbush. In their recent report titled "Still Day One For Amazon Ads; The Everything Stock," the analysts maintained their Outperform rating on the retail giant, while also raising their estimates and price target. They have set a new target of $210, up from $180.

Despite the rise in stock price, with shares increasing by 0.4% to $152.73 during early trading on Thursday, Wedbush believes that Amazon's advertising revenue has a long way to go. They project that by 2023, Amazon could generate a staggering $46.5 billion from advertising alone. Furthermore, they see Amazon as well-positioned to capture a significant portion of the global digital advertising market over the next few years.

Several factors contribute to this opportunity, including the forthcoming addition of advertising to Prime Video. Wedbush analysts argue that when combined with Amazon's organic gross merchandise volume (GMV) growth and increased on-platform advertising, the company will enjoy sustainable and robust revenue growth in the advertising sector.

The future looks promising for Amazon as it has witnessed an impressive 81% surge in stock price this year. In their report, Wedbush describes Amazon as being well-positioned for 2024. They foresee rising retail margins, accelerated growth of Amazon Web Services, and sustained outperformance in advertising revenue against industry norms.

Wedbush considers Amazon as their top pick within internet coverage.

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