Amazon Tenth Prime Day Major Deals and Investment

Amazon.com’s highly anticipated tenth Prime Day commences on Tuesday, promising significant benefits for both customers and the company’s stock performance. This exclusive sales event, which runs through Wednesday, has been a yearly tradition since 2015, accessible only to Amazon Prime members.

Exclusive Deals for Prime Members

Prime Day offers substantial discounts on a wide range of products, enticing members to take advantage of the savings. This year, Prime members can purchase a Peloton bike at a 30% discount or a Keurig coffee maker at 40% off. These deals are just a glimpse of the extensive discounts available, making Prime Day a major shopping event for consumers.

Prime Day presents irresistible deals, like a Peloton bike at 30% off or a Keurig at 40% off, attracting savvy shoppers, according to Barron’s Print Edition.

Economic Impact and Record-Breaking Potential

Prime Day is not only a crucial event for shoppers but also a significant driver for Amazon’s financial performance. In 2023, the first day of Prime Day, July 11, marked the single largest sales day in the company’s history. This year, Adobe Analytics predicts $14 billion in online spending over the two days of Prime Day, potentially setting a new record. This projection highlights the event’s importance in boosting Amazon’s overall sales and market presence.

Competition Heating Up

Recognizing the success of Prime Day, other major retailers have launched their own competing discount events. Walmart hosted its Walmart Deals event from July 8 to 11, offering discounts on items like televisions and Lego sets. Similarly, Target’s Circle members enjoyed savings on goods such as vacuums and comforters during Circle Week, from July 7 to 13. These events aim to capture a portion of the consumer spending frenzy initiated by Prime Day.

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Analyst Insights and Market Impact

BofA Securities analyst Justin Post believes Amazon is expanding its online retail market share. He notes Prime Day strengthens Prime branding and reduces customer churn. Post maintains a Buy rating for Amazon, setting a price target of $220. He expects Prime Day to boost Amazon’s gross merchandise value compared to last year.

He stated that Prime Day might represent 6.7% of the third-quarter gross merchandise value (GMV), estimated at $193 billion. Amazon’s shares have risen 27% this year and 44% over the last year, driven largely by excitement about AI and AWS growth.

Historical Performance and Investor Expectations

Historically, Prime Day modestly boosts Amazon’s stock. According to Dow Jones Market Data, shares typically rise: 0.2% the day after, 1.7% the following week, and 4.3% the month after the event. On Monday, Amazon’s stock fell 0.9%, contrasting with the S&P 500’s 0.3% gain. Nevertheless, Prime Day continues to have a positive long-term impact on Amazon, bolstered by higher sales and customer engagement.

The Role of Online Sales

Online sales are pivotal for Amazon. In 2023, online store sales of $231.9 billion constituted a significant portion of the company’s total $574.8 billion in revenue. As shoppers take advantage of deals on Ring Cameras and Alexa devices, investors will keenly await news of another record-breaking Prime Event year. The success of Prime Day not only boosts immediate sales but also reinforces Amazon’s position as a dominant force in the online retail market.

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