What's going on?

Amazon posted a mixed set of quarterly earnings late on Thursday, but you�re going to just adore the virtually assisted makeover the tech giant�s about to get.

What does this mean?

The pandemic-driven surge in online shopping continued to wear off last quarter, with revenue from Amazon�s ecommerce business growing just 6% compared to the same time in 2020. But at least the working-from-home trend doesn�t look like it�s going anywhere fast: Amazon Web Services � the company�s much more profitable cloud computing segment � saw revenue climb by a better-than-expected 40%.

Things could be looking up going forward too: Amazon announced it�d be upping the price for its Prime membership in the US soon � its first price rise since 2018. And since that rollout doesn�t cost Amazon a penny, it�s an extra pile of cash that�ll go straight to its bottom line. Investors, for their part, wanted some of it straight in their pockets: they sent Amazon�s stock up 18% after the news.

Why should I care?

Zooming in: Amazon�s got style.
Amazon�s well aware that customers� preference for �real� stores could stick around, which might be why the company announced last month that it�s planning to launch its own clothing stores. �Amazon Style� will give fashionistas AI-based recommendations in real time, and could help the company claim an even bigger chunk of the lucrative clothing market. It hardly needs it: Amazon overtook Walmart to become the top US clothing retailer last year, according to banking giant Wells Fargo.

Zooming out: Amazon vs inflation.
Amazon�s customers might not just be ditching online shopping, but shopping altogether: data out last week showed Americans spent an inflation-adjusted 1% less on goods and services in December than the month before. That might not sound like much, but it shows they�re feeling the pinch from the country�s 40-year high inflation. And if that continues, Amazon�s earnings next time around might not be so pretty.