Amazon Ad Revenue Growth Slows in Q3, Ecommerce Giant Undershoots Earnings Estimates

Amazon's advertising revenue growth decelerated in the third quarter, with the company attributing the slowdown to the timing of Prime Day, which was held in the second quarter for most major markets, and unfavorable foreign exchange rates. The ecommerce giant's overall earnings fell short of Wall Street expectations, reflecting broader challenges in a fluctuating global economy. This marks a notable shift for Amazon's ad business, which had been a key driver of profitability in recent quarters. The slowdown raises questions about the sustainability of rapid ad growth amid shifting consumer spending patterns and currency headwinds. Investors and analysts will be watching closely to see if Amazon can reignite momentum in the crucial holiday quarter, as competition in digital advertising intensifies from rivals like Google and Meta.