Looking ahead: One key to understanding Amazon’s priorities is to look at its acquisitions.
- In August, the company announced it would purchase robot vacuum manufacturer iRobot for $1.7 billion in a move calculated to reinforce its smart home dominance and give it an added Prime Day boost.
- In September, the retailer acquired robotics startup Cloostermans to ramp up warehouse automation and help address its growing people problem.
- Amazon’s $3.9 billion purchase of primary care provider One Medical and its failed bid for healthcare platform Signify Health signal the company’s ambitions to expand into areas where it’s likely to be subject to less antitrust oversight.
The big takeaway: Amazon may be well-positioned to cope with a downturn in consumer spending, but its outlook is by no means rosy. Its inability to record a profit for its retail business despite relatively strong sales growth—and a Prime Day boost—suggests a tension between its desire to offer as much convenience as possible, and the vast amount of resources required to do so.
Still, strong advertising growth and AWS revenues will help keep the flywheel turning in Q4 and beyond.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.