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Amazon Shares Drop as Cloud Growth Misses Expectations

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Amazon’s stock fell by 4% on Friday after the company’s quarterly cloud computing revenue growth fell short of investor expectations. The disappointing results reflected a slowdown in growth at Amazon Web Services (AWS), which posted a 19% increase in revenue to $28.79 billion. This figure was slightly below the anticipated $28.87 billion. The performance echoed similar disappointments from other major tech giants, including Microsoft and Alphabet, who also saw cloud revenue growth fail to meet expectations.

The missed expectations came as cloud companies, particularly those heavily investing in AI, are under greater scrutiny. AWS’s growth rate matched that of the previous quarter, raising concerns among analysts about potential capacity constraints or other unidentified issues.

The disappointing results led to a $100 billion drop in Amazon’s market value. However, Amazon’s stock has still risen about 4% in 2025, outpacing losses seen by Microsoft and Alphabet, whose stocks have fallen by 3%. Despite this drop, Amazon’s shares continue to be favored by analysts, with 68 recommending buying the stock and no analysts advising to sell.

Amazon Removes Diversity References from Annual Report

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Amazon has removed references to “inclusion and diversity” from its 2024 annual report, signaling a shift in its approach to diversity, equity, and inclusion (DEI) programs. This change follows a December memo from Amazon executive Candi Castleberry, in which she stated that the company would wind down outdated DEI initiatives by the end of 2024. The memo emphasized integrating DEI practices into existing processes rather than running separate, individual programs.

For the past two years, Amazon’s annual report had included a statement in its “human capital” section, highlighting the company’s focus on inclusion and diversity as part of its commitment to being the “Earth’s best employer.” The 2024 version of the report omits this mention entirely and also removes a reference to a goal of “promoting equity” in employee hiring and development efforts.

The removal of DEI references comes as many large corporations, including other tech giants like Meta and Alphabet, scale back similar initiatives following political pressures and challenges from conservative groups. These groups have targeted corporate diversity programs, and legal threats have emerged, urging companies to reconsider their DEI policies.

While Amazon’s website still states its commitment to diversity and inclusion, the company’s move to reduce its focus on these programs reflects broader shifts in corporate America, with some companies, such as Disney, also scaling back or adjusting their diversity-related efforts. Despite the changes, Amazon did not provide further details about potential alterations to DEI-related employee positions.

Amazon Faces Lawsuit Over Alleged Secret Consumer Tracking via Cellphones

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Amazon is facing a lawsuit accusing the company of secretly tracking consumers through their cellphones and profiting from the data it collects. Filed on Wednesday in a San Francisco federal court, the proposed class-action suit claims that the retail giant gained unauthorized access to users’ location data without their knowledge or consent. The lawsuit raises concerns about privacy violations and the extent to which tech companies can collect and monetize personal information.

According to the complaint, Amazon allegedly obtained “backdoor access” to consumer devices by embedding its Amazon Ads SDK code into tens of thousands of third-party apps. This allowed the company to collect highly detailed, timestamped geolocation data, which could reveal sensitive personal details such as where users live and work, their shopping habits, and even their religious affiliations and health concerns. The lawsuit argues that Amazon’s practices amount to “fingerprinting” consumers, creating vast profiles without their explicit permission.

The legal challenge was initiated by Felix Kolotinsky, a California resident who claims Amazon collected his personal data through the “Speedtest by Ookla” app on his phone. The lawsuit suggests that many consumers may have unknowingly shared their information in a similar manner, highlighting the growing debate over digital privacy and data security. If proven, these allegations could further fuel regulatory scrutiny of Amazon’s data collection practices.

Kolotinsky’s complaint accuses Amazon of violating California’s penal code and state laws against unauthorized computer access. The lawsuit seeks unspecified damages on behalf of millions of Californians who may have been affected. As concerns over corporate data tracking intensify, the case could have significant implications for how companies collect and use consumer data, potentially leading to stronger privacy protections in the future.