TLDR
- Amazon Prime Day sign-ups fell 2% short of targets with 5.4 million US registrations
- AWS announced $4.4 billion investment in New Zealand cloud infrastructure
- Stock declined 1.12% Friday and continued falling in Tuesday premarket
- Prime Day generated $24.1 billion in sales despite missing growth expectations
- Prime Invitee Program ending October 1, 2025
Amazon shares faced pressure after the company’s recent Prime Day event failed to meet internal growth targets, despite generating strong revenue numbers.
The e-commerce giant registered 5.4 million US sign-ups during the 21-day period leading up to and including the four-day Prime Day event from July 8-11. This figure missed last year’s total by approximately 116,000 sign-ups and fell 106,000 short of Amazon’s internal target.
Amazon defended its performance, claiming record-breaking sign-ups in the 25 days around Prime Day without providing specifics. The company emphasized that “Prime membership continues to show strong growth and customer engagement in the US and internationally.”
Prime Day drove $24.1 billion in online spending, representing a 30% increase from summer 2024. However, increased competition from Walmart in delivery and AI technology may have impacted performance.
AWS Invests Heavily in Asia-Pacific Growth
Amazon Web Services made a major expansion announcement Monday, committing $4.4 billion to establish the AWS Asia Pacific New Zealand region. The new infrastructure features three availability zones and operates under API name ap-southeast-6.
The investment is projected to contribute $6.3 billion to New Zealand’s GDP and create 1,000 new jobs annually. AWS generated $30.87 billion in revenue during the second quarter with $10.16 billion in operating income.
The cloud division faces increasing competition from Microsoft Azure and Google Cloud Platform despite maintaining its market leadership position.
Prime Service Changes Ahead
Amazon announced the termination of its Prime Invitee Program effective October 1, 2025. The program previously allowed Prime members to share fast, free delivery benefits with non-members.
Prime membership remains crucial to Amazon’s revenue strategy. Research shows Prime members spent an average of $1,170 with Amazon in 2024 compared to $570 for non-members.
R.W. Baird analyst Colin Sebastian noted Prime’s strategic importance: “People on Prime spend more on Amazon and they are less likely to be enticed by competitors’ offers of lower prices.”
Amazon stock has gained just over 4% this year, trading within a 52-week range of $161.38 to $242.52. Analysts maintain a consensus price target of $263.18, implying nearly 15% upside potential.
