Proactive Investors - Amazon’s Prime Day could contribute over $10 billion in Gross Merchandise Volume (GMV), boosting third-quarter earnings, according to analysts at Jefferies.
The annual shopping event, set to kick off tomorrow for two days, promises to lure in consumers with enticing deals across a myriad of products.
Last year's Prime Day saw Amazon’s its highest single-day sales ever with over 375 million items sold. This year, Amazon.com Inc (NASDAQ:AMZN) aims to build on that success, offering discounts on everything from electronics to household essentials, with early bird deals already proving competitive against rivals like Walmart (NYSE:WMT) and Target (NYSE:TGT).
“Our price comparison of select popular products showed that Amazon's prices were equal to or better than Walmart or Target, which were already running competing sales events a week before Prime Day,” Jefferies noted.
“We found selection and shopping experience (product details, reviews, etc.) were also better on Amazon. This is why more shoppers default to Amazon as their first destination.”
Beyond sales, Amazon is sweetening the deal for Prime membership, extending benefits to include significant discounts on Amazon Music Unlimited and highlighting its broader ecosystem of services like streaming and gaming.
Jefferies issued a bullish outlook on Amazon, maintaining a Buy rating with a price target of $235, signaling a potential 22% upside.