Connect with us

Published

on

A worker delivers Amazon packages in San Francisco, California, US, on Wednesday, Oct. 5, 2022. Amazon’s Prime Early Access Sale is on through Oct. 12 to boost sales among cost-conscious consumers who are expected to start their holiday shopping even earlier this year.

Bloomberg | Bloomberg | Getty Images

Amazon shoppers appear to have shrugged off promotions for discounted phone chargers and air fryers during this week’s Prime Day-like sales bonanza.

The 48-hour event, dubbed the Prime Early Access sale, ran through Wednesday. For Amazon, the event tested how members of its Prime subscription program would respond to two major discount events in the same year, after the company’s main Prime Day sale in July.

Amazon on Thursday said that tens of millions of Prime members ordered more than 100 million items from third-party vendors. It disclosed little else about the results, such as sales figures.

But data collected by third-party analysts gives a deeper look into how the Prime Day sequel went over with shoppers compared to Amazon’s sales event in July.

Sales during this week’s event seemed “lighter” compared to Prime Day in July, Bank of America analysts said. They estimate Amazon brought in $5.7 billion in revenue from the Prime Early Access Sale vs. $7.5 billion in July.

Commerce data company Klover said it observed slower spending and volume, noting transaction frequency was down 30% between the July event and October event.

The average spend per order during the Prime Early Access Sale was $46.68, down from $60.29 on Prime Day, according to market research firm Numerator. Meanwhile, most categories saw a decline in sales relative to the July sale — exceptions included toys; baby items; and books, video and other media, Numerator found.

Not everyone is convinced that the Amazon sale was a flop. Even if the 48-hour event failed to exceed Prime Day sales, Amazon still likely saw more sales on Tuesday and Wednesday than it would on a typical day, said Juozas Kaziukenas, founder of research firm Marketplace Pulse.

“I think it did fine for what Amazon was trying to do, which was to reduce the amount of products they have in their warehouses,” Kaziukenas said.

Amazon, Walmart, Target and many other major retailers are grappling with a glut of inventory after long-delayed orders of items that were hot sellers during the pandemic arrived, only to be passed over by shoppers whose habits have since shifted. Companies are now opting to kick off holiday sales sooner than ever with the hope that it will help clear out unwanted inventory.

Those challenges may have pushed more brands to run promotions during the sale. For example, Peloton, which has wrestled with excess inventory, was one of the top-selling items.

Amazon may also be looking to juice sales as it confronts slowing revenue growth and what’s likely to be a lackluster holiday shopping season. Online spending throughout the holiday season is expected to grow 2.5%, according to Adobe, marking the slowest growth since the firm began tracking the figure in 2015.

Discount events such as the Prime Early Access sale are a relatively low cost way to goose sales, Kaziukenas said.

“The only cost is the discount, which is either coming from sellers or brands,” he said. “In terms of putting up the actual event, it’s a cheap thing for them to do. They could do it every month if they wanted to.”

WATCH: Amazon gets in front of holiday shopping with second Prime Day of the year

Amazon gets in front of holiday shopping with second Prime Day of the year

Continue Reading

Technology

Big Tech split? Google to sign EU’s AI guidelines despite Meta snub

Published

on

By

Big Tech split? Google to sign EU’s AI guidelines despite Meta snub

VCG | Visual China Group | Getty Images

Google on Wednesday said it will sign the European Union’s guidelines on artificial intelligence, which Meta previously rebuffed due to concerns they could stifle innovation.

In a blog post, Google said it planned to sign the code in the hope that it would promote European citizens’ access to advanced new AI tools, as they become available.

Google’s endorsement comes after Meta recently said it would refuse to sign the code over concerns that it could constrain European AI innovation.

“Prompt and widespread deployment is important,” Kent Walker, president of global affairs of Google, said in the post, adding that embracing AI could boost Europe’s economy by 1.4 trillion euros ($1.62 trillion) annually by 2034.

The European Commission, which is the executive body of the EU, published a final iteration of its code of practice for general-purpose AI models, leaving it up to companies to decide if they want to sign.

The guidelines lay out how to meet the requirements of the EU AI Act, a landmark law overseeing the technology, when it comes to transparency, safety, and security.

However, Google also flagged fears over the potential for the guidelines to slow technological advances around AI.

“We remain concerned that the AI Act and Code risk slowing Europe’s development and deployment of AI,” Kent Walker, president of global affairs of Google, said in the post Wednesday.

“In particular, departures from EU copyright law, steps that slow approvals, or requirements that expose trade secrets could chill European model development and deployment, harming Europe’s competitiveness.”

Earlier this month, Meta declined to sign the EU AI code of practice, calling it an overreach that would “stunt” the industry.

“Europe is heading down the wrong path on AI,” Joel Kaplan, Meta’s global affairs chief, wrote in a LinkedIn post at the time. “This code introduces a number of legal uncertainties for model developers, as well as measures which go far beyond the scope of the AI Act.”

AI chip startup Rebellions looks to raise up to $200 million ahead of IPO

Continue Reading

Technology

South Korea’s LG Energy Solution signs $4.3 billion battery supply deal with undisclosed party

Published

on

By

South Korea's LG Energy Solution signs .3 billion battery supply deal with undisclosed party

The logo of LG Electronics is seen on the opening day of the Integrated Systems Europe exhibition in Barcelona on January 31, 2023.

Pau Barrena | Afp | Getty Images

South Korea-based LG Energy Solution announced Wednesday that it had signed a $4.3 billion contract for supplying batteries to a major corporation, without naming the customer.

The effective date of contract — receipt of orders — began Tuesday and will conclude at the end of July, 2030. During this period, the counterparty will not be disclosed to maintain business confidentiality, the company’s filing with the Korea Exchange showed Wednesday. Reuters reported that Tesla was the counterparty.

Earlier this week, Tesla CEO Elon Musk confirmed that the EV maker was behind a previously undisclosed $16.5 billion chip contract with South Korea’s Samsung Electronics. 

LG Energy said in its filing that details of the contract such as the deal amount were subject to change and the contract period could be extended by up to seven years. 

“Investors are advised to carefully consider the possibility of changes or termination of the contract when making investment decisions,” the company cautioned. It’s shares were trading 0.26% lower. 

The filing did not clarify whether the lithium iron phosphate batteries would be used in vehicles or energy storage systems. Its major battery customers include American electric-vehicle makers Tesla and General Motors.

The company has been expanding its battery production in the U.S., and is constructing a plant in Arizona that will produce lithium iron phosphate batteries. 

LG Energy Solution and Tesla did not immediately respond to CNBC’s requests for comment. 

Continue Reading

Technology

CyberArk’s stock jumps on report Palo Alto Networks in talks to buy company for over $20 billion

Published

on

By

CyberArk's stock jumps on report Palo Alto Networks in talks to buy company for over  billion

Nikesh Arora, CEO of Palo Alto Networks, looks on during the closing bell at the Nasdaq Market in New York City, U.S., March 25, 2025.

Jeenah Moon | Reuters

CyberArk shares soared as much as 18% on Tuesday after The Wall Street Journal reported that cybersecurity provider Palo Alto Networks has held discussions to buy the identity management software maker for over $20 billion.

Cloud security is becoming an increasingly critical piece of the enterprise tech stack, especially as rapid advancements in artificial intelligence bring with them a whole new set of threats, and as ransomware attacks become more commonplace.

Founded in 2005, Palo Alto Networks has emerged in recent years as a consolidator in the cybersecurity industry and has grown into the biggest player in the space by market cap, with a valuation of over $130 billion. CEO Nikesh Arora, who was appointed to the job in 2018, has been on a spending spree, snapping up Protect AI in a deal that closed in July, and in 2023 buying Talon Cyber Security, Dig Security and Zycada Networks.

But CyberArk would represent by far Arora’s biggest bet yet. The Israeli company, which went public in 2014, provides technology that helps companies streamline the process of logging on to applications for employees.

CyberArk faces competition from Microsoft, Okta and IBM‘s HashiCorp. Another rival, SailPoint, returned to the public markets in February.

With Tuesday’s rally, CyberArk shares climbed to a record, surpassing their prior all-time high reached in February. The stock is up 29% this year, pushing the company’s market cap to almost $21 billion, after jumping 52% in 2024. Palo Alto shares, meanwhile, slid 3.5% on the report and are now up about 9% for the year.

Representatives from Palo Alto Networks and CyberArk declined to comment.

During the first quarter, CyberArk generated around $11.5 million in net income on around $318 million in revenue, which was up 43% from a year earlier.

It’s been an active stretch for big deals in the cyber market. Google said in March that it was spending $32 billion on Wiz, its largest acquisition on record by far, and a purchase intended to bolster its cloud business with greater AI security technology.

Networking giant Cisco also made its biggest deal ever in the security space, buying Splunk in 2023 for $28 billion. Splunk’s technology helps businesses monitor and analyze their data to minimize the risk of hacks and resolve technical issues faster.

— CNBC’s Ari Levy contributed to this report

WATCH: Cisco CEO on acquisition of Splunk

Cisco CEO Chuck Robbins: $28 billion Splunk deal will be a significant financial growth driver

Continue Reading

Trending