Amazon delivered a quarter of contrasts, with its advertising division outperforming while job cuts and weaker profit forecasts rattled investors. The tech giant reported a 20% surge in average ad revenue per customer during Prime Day, alongside a 10% improvement in advertising efficiency. However, shares plummeted 8% after Q3 operating income projections of $15.5–20.5 billion fell short of analysts’ $19.4 billion expectations. Executives warned that power shortages and chip constraints could hinder AI expansion, despite leading rivals with $31.4 billion in AI investments.
Wearables Revival Amid Podcast Retreat
The company abandoned its podcast ambitions by shutting down a recently acquired studio, eliminating 110 jobs, while pivoting to a new wearable gamble. Its $50 AI-powered productivity band transcribes conversations in real-time, targeting a market where previous fitness trackers failed. Yet data privacy concerns loom large, compounded by Amazon’s track record with voice assistants. As competition intensifies from Apple and Meta, the wearable reboot faces skepticism despite its budget-friendly appeal.