Yahoo Finance Amazon (AMZN) Bolsters Prime Day Efforts With Early Deals
Amazon AMZN is gearing up for its two-day global mega summer shopping event, Prime Day, which is set to kick off on Jul 11.
Notably, the company announced early deals on select Amazon devices, including Echo Show 5 (3rd Gen), Echo Pop, Echo Glow, Echo Show 5 (3rd Gen) Kids, Ring bundles, eero mesh Wi-Fi systems and Blink Outdoor, among others.
Early Prime Day deals are also available on products from brands like Ruggable and Quip and on products from small businesses like Madison Reed, Balanced Tiger and AllKem Beauty, to name a few.
Further, the company is offering early deals on products from black-owned, women-owned, military family-owned brands and independent artisans.
This apart, Amazon is offering early access to deals from brands like Briogeo Hair Care, Anker, Wyze and Pickleball Central to Prime members in the United States. Starting Jun 21, Prime members can shop directly from these brands using ‘Buy with Prime.’
In addition to early deals, the company has announced ‘Back to School’ and ‘Off to College’ shopping guides, as well as related great deals. It will also include exclusive deals on celebrity products.
Prime Day will be conducted in several countries like the United States, the United Kingdom, Australia, Austria, Belgium, Brazil, Canada, China, Egypt, France, Germany, Italy, Japan, Luxembourg, Mexico, the Netherlands, Poland, Portugal, Saudi Arabia, Singapore, Spain, Sweden, Turkey and the United Arab Emirates.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Move to Benefit
Amazon intends to make its Prime Day event a huge success by providing access to the above-mentioned early deals. Moreover, the latest move will likely boost AMZN’s Prime Day sales and drive customer momentum.
Moreover, the latest move will help Amazon attract more customers across the above-mentioned 24 countries to join its Prime program, which, in turn, will drive its subscription revenues.
Notably, subscription services have been acting as key drivers for the e-commerce giant for the past few years. Amazon witnessed 15% growth in its subscription services sales, which were $9.7 billion in first-quarter 2023.
Growing momentum across subscription services is expected to continue driving the company’s overall top-line growth.
For 2023, the Zacks Consensus Estimate for revenues is pegged at $560.32 billion, reflecting growth of 9% from 2022.
We believe that the strengthening financial performance of the company will likely raise investor optimism about the stock. Amazon has gained 48.7% on a year-to-date basis.
Prime: A Key Catalyst
The Prime Day celebration rakes in profits for AMZN by benefiting shoppers as well as third-party sellers to a great extent.
Amazon Prime remains a key catalyst for AMZN’s top-line growth, backed by customer-friendly offers and cashback benefits.
Further, strengthening delivery and shipment services and expanding music and video content, plus a robust loyalty system, are constantly boosting Amazon’s Prime subscriber base.
All the benefits aid Amazon in delivering better shopping experiences to its Prime members.
We believe that Amazon is well-poised to sustain its dominant position in the booming e-commerce space on the back of its solid momentum across the Prime program.
Zacks Rank & Stocks to Consider
Currently, Amazon carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector are The TJX Companies TJX, ContextLogic WISH and Walmart WMT. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The TJX Companies has gained 2.4% on a year-to-date basis. The long-term earnings growth rate for DTC stock is currently projected at 16.74%.
ContextLogic has lost 48.6% on a year-to-date basis. The long-term earnings growth rate for WISH stock is currently projected at 4.4%.
Walmart has gained 7.1% on a year-to-date basis. The long-term earnings growth rate for WMT stock is currently projected at 5.5%.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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