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FAANG Report: Amazon' could get hooked on advertising revenue; Netflix opening hub in New Mexico

Facebook has a new video portal, but can anyone trust the scandal wracked social media giant?

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Amazon could become hooked on ad revenue.

Retail behemoth Amazon.com Inc (NASDAQ:AMZN) is now one of the world's largest online advertising companies, with ad revenues topping $2 billion in the second quarter of the year alone, and they could become reliant on that funding stream, a report by Fortune said.

Aside from its already flourishing Amazon Web Services (AWS), the retailer could become a company that relies on maximizing the time and the clicks people spend on their site -- like rivals Facebook and Google.

Piper Jaffray analyst Michael Olson actually expects Amazon’s ad sales to surpass AWS sales as early as 2021, making it a serious growth engine for the company.

This is still far behind what Google and Facebook bring in, but the rapid rise of Amazon’s ad business raises an interesting question. Namely, can Amazon avoid the same trap that has bedeviled other ad-driven behemoths: focusing on ads at the expense of user privacy?

Amazon shares added 0.1% to $1,866.46 by midsession.

READ: Amazon rings up more than US$10bn in annual sales from its global business customers

Netflix Inc (NASDAQ:NFLX) announced that Albuquerque, New Mexico, will be the site of a new US production hub which will bring upwards of $1 billion in production money to the state and up to 1,000 jobs per year in the area, Variety said in a report.

Netflix said it is in final negotiations to buy ABQ Studios, located in Albuquerque’s Mesa del Sol planned community, as the base for its operations in the state. The deal is the company’s first purchase of a production studio complex; terms of the deal aren’t being disclosed. ABQ Studios, which opened in 2007, is currently owned by Pacifica Ventures.

The move comes after Netflix set plans for a significant expansion of its presence in Los Angeles last week, signing a lease through 2031 on a 13-story tower in Hollywood set to be completed in 2020 that is adjacent to its existing LA offices and production facilities at the Sunset Bronson Studios lot.

Netflix stock rose 0.47% to $350.73.

Apple Inc (NASDAQ:AAPL) has issued an update to the iOS12 to fix several bugs that have plagued iPhone XS and XS Max users since the phones were released, a report by The Verge said.

The update should fix one of the biggest issues on the iPhone XS and XS Max: users reported poor Wi-Fi reception compared to their previous iPhone X devices when used in their homes, but it doesn’t address the separate LTE issues.

It also resolves the widespread issue of iPhone XS devices requiring to be unlocked before recognizing the Lightning cable charger. There’s also a slightly lesser-known issue with the iPad keyboard that’s being fixed, the report said.

Apple shares went up 0.56% to $225.02.

READ: Facebook says hacking attack hit almost 50 million accounts

Facebook Inc's (NASDAQ:FB) new Portal video phone is designed to simplify video chatting as it tracks you around the room, but there is only one problem -- it is made by Mark Zuckerberg, a report by The Verge said.

The issue, of course, is trust, especially given the privacy scandals that have made customers wary of Facebook's connected devices, the report said.

There is a strong feeling of distrust about Facebook putting an always-on microphone and camera in a home.

The fact remains that this is a device whose launch was delayed in the midst of one privacy scandal (Cambridge Analytica) only to arrive in the midst of another one (50 million people hacked).

Facebook shares added 0.6% to $158.19.

Alphabet Inc's Google (NASDAQ:GOOG) will not compete for a multibillion dollar cloud computing contract with the Pentagon because the project may conflict with its corporate mission, a report by CNN Business said.

Bids for the $10 billion contract are due by Friday, October 12. It's being eyed by Microsoft Corp (NASDAQ:MSFT), Oracle Corp (NYSE:ORCL) and Amazon. 

Separately, Google also debuted its Pixel 3 phone for 2018, a camera-free home contraol and a new detachable Chrome OS tablet, Cnet said in a report. The company also announced a tablet, laptop, smart home hub and AR partnerships with Marvel and Childish Gambino. 

Google shares were off 0.7% to $1,140.15. 

Quick facts: Amazon.com, Inc.

Price: 2009.29 USD

Market: NASDAQ
Market Cap: $1 trillion

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