Mondelez International

Amazon has a plan to become profitable. It's called advertising

Amazon has a plan to become profitable. It's called advertising

For more than two decades, Amazon.com Inc. chief Jeff Bezos has famously sacrificed profit for growth, convincing Wall Street that his company’s interests were best served by pouring money into the logistical nuts and bolts that have turned Amazon into the Wal-Mart of the web. More recently, investors have found solace in the company’s profitable cloud services business, which has helped offset losses in e-commerce.

Still, for the past five years Amazon’s average profit margins have languished around 1%.

Now along comes a business that could generate consistent and healthy returns: advertising. Over the past several years, Amazon has quietly put together the pieces for a...

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