Amazon's AWS is facing challenges due to operational bloat, which is hindering its competitiveness against rivals that are securing key AI partnerships. As competitors gain traction in the AI space, AWS must address its inefficiencies to maintain its market position.

Amazon's Prime Day sale has been extended to four days, from July 8 to July 11, as a strategic response to increasing competition and economic concerns. Analysts anticipate a substantial increase in online spending during this period, with expectations of record sales despite mixed consumer interest driven by tariff-related anxieties.

Amazon is expanding its same-day delivery service for fresh foods, including meat and eggs, to over 1,000 U.S. cities, with plans to reach 2,300 locations by the end of the year. The service has shown success in attracting first-time grocery customers, while also intensifying competition with other grocery delivery services and supermarket chains.