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Amazon.com forecast third-quarter sales above market estimates on Thursday but failed to live up to lofty expectations for its Amazon Web Services cloud computing unit after rivals handily beat expectations. Shares fell by more than 2% in after-market trading after finishing regular trading up 1.7% to $234.11. Both Google-parent Alphabet and Microsoft posted big cloud computing revenue gains earlier this month. AWS profit margins also contracted. Amazon said they were 32.9% in the second quarter, compared with 39.5% in this year’s first quarter and 35.5% a year ago. The second-quarter margin results were at their lowest level since the final quarter of 2023. AWS, the cloud unit, reported a 17.5% increase in revenue to $30.9 billion, edging past expectations of $30.77 billion. After strong growth from Microsoft and Google, “AWS is lingering at 17% growth,” said Gil Luria, a D.A. Davidson analyst. “That is very disappointing, even to the point where if Microsoft’s Azure continues to grow at these rates, it may overtake AWS as the largest cloud provider by the end of next year.” The company expects total net sales to be between $174.0 billion and $179.5 billion in the third quarter, compared with analysts’ average estimate of $173.08 billion, according to data compiled by LSEG. Blockbuster cloud revenue growth at Microsoft and Alphabet’s Google raised expectations for AWS, the world’s largest cloud provider. Both Microsoft and Alphabet cited massive demand for their cloud computing services to boost their already huge capital spending, but also noted they still faced capacity constraints that limited their ability to meet demand. AWS represents a small part of Amazon’s total revenue, but it is a key driver of profits, typically accounting for about 60% of Amazon’s overall operating income. While Amazon has poured billions into AI infrastructure, analysts have said the lack of a strong AI model from AWS is causing some concerns that the company could be trailing rivals in AI development, analysts said. President Donald Trump’s tariffs have dampened the U.S. retail industry, leaving major retailers and consumer goods companies scrambling to protect their margins or resort to price increases, all while ensuring consumer demand remains intact. Trump has said the levies will bring manufacturing power and jobs back to the U.S. Investors have been closely watching Amazon’s e-commerce unit for any signs that tariff-related uncertainty has dashed consumer confidence. U.S. data showed consumer spending rose moderately in June. Analysts had said Amazon’s focus on low prices, quick delivery and the sheer number of product categories has helped cement its position as the No. 1 e-commerce retailer for U.S. consumers, giving it an edge over rivals. Amazon has said it was pushing suppliers to pull forward inventories to ensure supply and keep prices as low as possible. Still, prices for goods made in China and sold on Amazon.com have been rising faster than overall inflation, Reuters reported last month. Deborah Mary Sophia and Greg Bensinger, Reuters
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E-Commerce
While the old proverb every dog will have its day was not directly referring to surfing canines, we are going to ride that metaphor like a wave anyway. The 2025 World Dog Surfing Championships Best Waves is an adorable television competition airing tonight (Friday, August 1) at 12:00 a.m. ET / 9:00 p.m. PT on ESPN2. It’s part of the network’s larger “ESPN8 The Ocho” programming, which celebrates obscure sports. Lets dive into all the details. A brief history of surfing The sport of surfing is said to date back to ancient Polynesian culture. The Polynesian people were masterful wayfinders who made their way to Hawaii. On these islands, the sport took root and was incorporated into religious ceremonies. When did dogs start surfing? While we will probably never know who first decided to put a dog on a surfboard, it is not a new phenomenon. Film footage from the 1930s caught a terrier named Night Hawk who loved to ride the waves. The following decade, a good boy named Rusty from California graced the pages of National Geographic. The organization behind the World Championships for Dog Surfing claims that the concept of the sport originated on the California coast. The act of seeing a furry friend hang ten is so adorable, it’s hard to resist watching it. What is ESPN8: The Ocho? Popular sports cable channel ESPN agrees and will air the 2025 World Dog Surfing Championships Best Waves as part of its ESPN8: The Ocho programming on ESPN2. Every August, ESPN2 turns into ESPN8 The Ocho to celebrate obscure sports such as dog surfing. The genesis of the idea to feature unconventional sports came from the 2004 film Dodgeball: A True Underdog Story. ESPN executives took the parody channel featured in the movie and ran with it. The tradition started in 2017 and is still going strong today. What is the ‘best waves’ special about? The 2025 World Dog Surfing Championships Best Waves is a video competition hosted by Kylie Speer and A.K. Crump. Judges get to critique the pups finest momentsthere are no wipeouts here. Canines are divided into four categories. The first three are based on size and the last one focuses on human/dog duos. How can I stream the surfing dogs TV special? To see all the canine athletics, tune into ESPN2 at midnight tonight ET (9 p.m. PT). If you’re a cord-cutter, several live-TV streaming services offer the cable channel. Those include: Sling TVs Orange plan Hulu + Live TV Fubo YouTube TV If you find yourself in Pacifica, California, on Saturday, August 2, you could even catch some dogs in action. The live in-person competition begins at 9 a.m., with additional programming such as a pet wellness fair and pet adoptions scheduled throughout the day. Visit the World Dog Surfing website for more information, then head out and get some sand between your toes. Cowabunga, pups!
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E-Commerce
Nvidia said on Thursday its products have no “backdoors” that would allow remote access or control after China raised concerns over potential security risks in the firm’s H20 artificial intelligence chip. The Cyberspace Administration of China, the country’s internet regulator, said it was concerned by a U.S. proposal for advanced chips sold abroad to be equipped with tracking and positioning functions. The CAC’s move cast uncertainty over the U.S. company’s sales prospects in China weeks after a U.S. export ban was reversed. The regulator said it had summoned Nvidia to a meeting on Thursday to explain whether its H20 AI chip had any backdoor security risks, as it was worried that Chinese user data and privacy rights could be affected. A backdoor risk refers to a hidden method of bypassing normal authentication or security controls. In a statement, an Nvidia spokesperson said, “Cybersecurity is critically important to us. Nvidia does not have ‘backdoors’ in our chips that would give anyone a remote way to access or control them.” The White House and both houses of U.S. Congress have proposed the idea of requiring U.S. chip firms to include location verification technology with their chips to prevent them from being diverted to countries where U.S. export laws ban sales. The separate bills and White House recommendation have not become a formal rule, and no technical requirements have been established. Nvidia has been a focus of U.S.-China relations, and China’s move comes shortly after the U.S. this month reversed an April ban on Nvidia selling the H20 chip to China. The company developed the H20 chip for the Chinese market after the U.S. imposed export restrictions on advanced AI chips in late 2023. “Nvidia chips are now dispensable for China. They can be easily put on the negotiating table,” said Tilly Zhang, an analyst with Gavekal Dragonomics. “China obviously has more courage and domestic substitution capabilities compared to previous years to not rely on overseas technology.” This month, Nvidia CEO Jensen Huang embarked on a public and effusive visit to China, where he sought to demonstrate his commitment to the Chinese market, met with government officials, and praised the country’s AI advances. The CAC statement did not elaborate on what backdoor security risks there could be or say what the Chinese government was considering doing as a result. Strong demand Charlie Chai, an analyst with tech- and consumer-focused 86Research, said Beijing’s warning was likely a symbolic stance against similar objections made by U.S. authorities. “However, we do not believe Beijing will make excessively harsh demands or introduce regulatory hurdles that will effectively drive Nvidia out of China, for the lack of alternatives. China still needs Nvidia chips for domestic research and applications,” Chai said. Nvidia’s products are highly sought after not just by Chinese tech companies but also by Chinese military bodies, state-run AI research institutes, and universities. The company last week placed an order with contract manufacturer TSMC for 300,000 H20 chipsets due to strong demand, Reuters reported. Chinese authorities and industry associations have in the past accused U.S. tech companies of posing security risks, with varying consequences. In early 2023, China barred key operators of the country’s infrastructure from purchasing from Micron, saying that a review it conducted had found the U.S. memory chipmaker’s products posed serious security risks. Last year, the Cybersecurity Association of China, an industry group, called for Intel products sold in China to be subject to a security review, but Chinese regulators have not publicly responded. Nvidia is also facing an antitrust investigation in China. The State Administration for Market Regulation announced late last year it was investigating the chipmaker over suspected violations of the country’s anti-monopoly law. The regulator said Nvidia was also suspected of violating commitments it made during its acquisition of Israeli chip designer Mellanox Technologies, under terms outlined in the regulator’s 2020 conditional approval of that deal. Beijing Newsroom, Reuters
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E-Commerce
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