What's going on?

Amazon and Apple both reported worse-than-expected results late on Thursday, and it�s going to take more than a bag of rice to fix this.

What does this mean?

Amazon finally has something to grumble about: revenue from the company�s ecommerce segment climbed by a weaker-than-expected 12% last quarter versus the same time last year. It has reservations about the next few months too: it�s not expecting labor shortages to go away, even as it offers tasty incentives to poach workers off smaller outfits. Investors, then, initially sent its stock down 5%.

Apple had better luck: revenue from its services segment � Apple TV, Music, and the like � grew by more than expected. But the company said it reckons the chip shortage has cost it as much as $6 billion, and iPhone sales � which represent the company�s biggest source of revenue � came in below expectations too. Investors noticed: they sent its shares down 5%.

Why should I care?

Zooming in: Apple doth protest too much.
If you followed Facebook and Snapchat�s earnings updates, you�ll know Apple�s new privacy settings have made it harder for advertisers to target would-be shoppers. And while Apple keeps waxing lyrical about how the move was in iOS users� interests, that virtuousness looks a little threadbare considering that advertisers now have to pay Apple directly if they want to get noticed. It�s hardly a coincidence, after all, that the segment has more than tripled its market share in the six months since the changes were introduced�

The bigger picture: A very wary Christmas.
Amazon�s disappointing ecommerce update reflects a bigger problem: US consumer spending is dropping off, which is partly why the country�s economy grew just 2% last quarter versus the same time the year before. That�s the slowest growth since the beginning of the recovery. So while your mom might think it�s the thought that counts this Christmas, economists beg to differ�