Amazon Set To Top Last Year's Prime Day Results Due To Early Deals, Analysts Say
Amazon.com, Inc. (NASDAQ:AMZN) should beat last year’s Prime Day results due to “early access deals,” analysts say.
Bank of America (NYSE:BAC) expects sales for this year’s 48-hour sales spree to jump 7% to $13 billion, beating the 6.1% sales leap to $12.7 billion posted during last year’s Prime Day, CNBC report citing Adobe Analytics.
“In our view, this year’s press release was more focused on early access deals and discounted services than last year, which could pull forward some sales out of Prime Day(s),” the bank said in a note on Monday
Amazon will offer discounts on hundreds of items over the two days to consumers with Amazon Prime memberships, including 57% off an Amazon Fire HD tablet computer, 28% off a Kenmore electric oven and 37% off a 55-inch Amazon Fire TV, according to its website.
Also Read: Analysts See Upside Ahead For Amazon Stock As Prime Day Approaches
Bank of America noted that Amazon isn’t the only retailer holding July sales events. Retail giant Walmart Inc. (NYSE:WMT) just held a deal event that ended July 11. Target Corporation (NYSE:TGT) held a “Circle Week” promotion that closed on July 13. TikTok Shop is holding a “Deal for You Days” that began on July 9.
Bank of America maintains a Buy rating and price target of $194.49 for Amazon.
Price Action: Amazon edged up 0.28% to $195.04 by late-morning trading on Monday. Walmart edged up 0.84% to $69.82.
Exchange-traded funds that hold both Amazon and Walmart shares, however, trended downward.
Consumer Staples Select Sector SPDR Fund (NYSE:XLP) slipped 0.01%, while Fidelity MSCI Consumer Staples Index ETF (NYSE:FSTA) and Vanguard Consumer Staples ETF (NYSE:VDC) both dipped 0.08%. ProShares Ultra Consumer Staples (NYSE:SZK) declined 0.70% and Van Eck Retail ETF (NASDAQ:RTH) slipped 0.19%.
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