Bernstein: Amazon's advertising revenue falls short of expectations, rekindling market concerns over AI disruption

October 30 - Bernstein analysts stated that Amazon's (AMZN.O) advertising revenue falling short of expectations will exacerbate investor concerns that artificial intelligence is disrupting the search business model and rekindle related questions that arose earlier this week following the earnings report of Google's parent company Alphabet. The analysts noted that Amazon's third-quarter advertising revenue growth slowed to 12% year-over-year, and advertising is a key source of profit for the company. This earnings miss will raise market doubts about whether AI is changing consumer behavior. However, Amazon's guidance for fourth-quarter advertising revenue growth is relatively optimistic.