Amazon.com’s stock has historically seen a rise following its highly anticipated sales event, Prime Day. Taking place on July 11 and 12 this year, Prime Day offers exclusive deals to Amazon Prime members on a wide range of products including smart security cameras, beauty products, clothing, personal electronics, and more.
Over the years, Amazon’s stock has consistently performed better after the conclusion of Prime Day. While the event usually takes place in mid-July from 2015 to 2022, there were exceptions in October 2020 and June 2021. Data from Dow Jones Market Data reveals that from 2015 to 2022, the stock saw an average increase of 0.4% the day after Prime Day ended, 1.3% in the week following the event, and an impressive 4.4% in the month after.
Prime Day has proven to be a significant boost to Amazon’s business. Last year alone, Prime members purchased over 300 million items worldwide during the sales extravaganza, setting a new record for the company. With this year’s event expected to be even better, it presents an opportunity for Amazon’s stock to outperform its previous performance.
This July, as shoppers scour the internet for the best deals, all eyes will be on Amazon’s stock as investors eagerly anticipate a positive post-Prime Day outcome.
Potential Upside for Amazon’s Prime Day Sales
By Angela Palumbo
As consumers continue to hunt for deals, merchants are anticipating a robust Prime Day this year. Justin Post, an analyst at BofA Securities, predicts potential upside in growth estimates compared to Prime Day last July. This could position Amazon for an acceleration in gross merchandise value (GMV) in the third quarter.
While inflation and rising interest rates have plagued consumers in recent months, the consumer confidence index saw a rise in June, reaching its highest level since January 2022. However, the expectations index, which measures consumers’ short-term outlook for income, remains low. This suggests that shoppers are cautiously bracing themselves for a possible recession within the next six to 12 months.
According to Post, the timing couldn’t be better for Prime Day ’23. Multiple retailers, including Amazon, have noticed that consumers are becoming increasingly cost-conscious in 2023.
Despite these promising prospects, Amazon’s stock experienced a 2.3% dip on Monday, settling at $126.79. Nevertheless, the stock has seen an impressive 51% surge since the beginning of the year.