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Amazon Stock: Mixed Signals as Ads Shine, Wearables Gamble

Felix Baarz by Felix Baarz
August 4, 2025
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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.

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Felix Baarz

Felix Baarz

My name is Felix Baarz, and I look back on over fifteen years of experience as a business journalist. I have always been fascinated by the mechanisms and dynamics of global financial markets as well as the complex economic and political interconnections that shape our world. With this passion, I have made a name for myself as an expert on international financial markets and dedicate myself with great commitment to making even the most complex topics understandable and accessible to my readers. My roots lie in Cologne, where I was born and raised. Early on, my curiosity about economic topics and international developments sparked my interest in journalism. After completing my studies, I began my career as a business editor at a respected German trade publication. Here I laid the foundation for my professional career, but my curiosity soon drew me out into the wider world. A turning point in my life was moving to New York, where I lived for six years and gained insight into leading media houses. In this vibrant metropolis, I was able to report firsthand from the heart of the global financial world. From daily developments on Wall Street to major economic policy decisions that make waves worldwide, I had the opportunity to write about central topics that move people and markets alike. This time shaped my perspective and sharpened my view of global interconnections.

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