Amazon Prime Day Starts Tomorrow
Shoppers are anticipated to spend around $14 billion during Amazon's Prime Day event this week, according to Adobe Analytics. This projection caused a slight uptick in Amazon's stock during Monday morning trading.
Amazon’s 10th annual Prime Day will kick off on July 16 and continue through July 17. The company promises Prime members "millions of deals across more than 35 product categories," according to a recent blog post.
Adobe Analytics estimates that U.S. spending will reach $7.1 billion on the first day and $6.9 billion on the second day, totaling about $14 billion. This would represent a 10.5% increase from last year's event.
Last year, Adobe reported that Prime Day sales grew by 6.1% year-over-year to $12.7 billion.
Prime Day Travel Deals on Analysts' Radar
Adobe attributes the stronger spending growth to steeper discounts, which are expected to range from 9% to 22% off the listed prices for various items.
BofA Securities analyst Justin Post predicts that savings on travel items, such as 40% off certain Carnival cruises, will also contribute to the year-over-year spending increase, as he mentioned in a note to clients on Monday.
BofA estimates Prime Day will generate $13 billion in spending over the two days. However, Post believes the overall impact will be higher due to early deals Amazon has been offering to promote the event.
Prime Day is also expected to boost Amazon's advertising business, according to Post. He reiterated a buy rating for Amazon with a price target of 220.
"We estimate Amazon is still gaining market share within online retail, with Prime Day likely driving Prime branding and reducing churn as customers take advantage of significant discounts and rapid delivery," he wrote.
Amazon Stock Performance
On Monday, Amazon stock saw a slight increase, trading at 194.91. This year, Amazon's stock has risen by 28%, compared to an 18% gain for the S&P 500.
In late June, Amazon shares cleared a flat base buy point of 191.70, according to MarketSurge charts, helping the company achieve a $2 trillion market cap, making it the fifth company to reach this milestone.
However, shares dipped last week amid a broader sell-off of megacap tech stocks. Amazon stock dropped by 2.4% on Thursday and by 0.5% on Friday. As of Monday morning, shares were hovering just above Amazon's 21-day moving average.
