Amazon.com stock is on the rise after the e-commerce giant declared that this year’s Prime Day was its “single largest sales day” to date. Spanning two days, July 11th and 12th, Prime members across the globe purchased over 375 million items, resulting in savings exceeding $2.5 billion. This surpasses last year’s Prime Day, which saw sales of more than 300 million items.
Amazon revealed that the most popular categories during this year’s Prime Day were home, fashion, and beauty. Additionally, millions of Amazon Alexa-enabled devices were purchased, with the Fire TV stick with Alexa Voice Remote being the best-selling product worldwide.
While Amazon does not disclose precise sales figures for Prime Day, third-party data from Adobe Analytics sheds some light on consumer spending. E-commerce purchases for these two days reached $12.7 billion, marking a 6.4% increase from the previous year. It is worth noting that Adobe’s analysis covers a comprehensive range of U.S. retail sites and includes other retailers beyond Amazon.
Average Order Size
Early data from Numerator indicates that the average order size this year was $54.05, up from $52.26 in the previous year. The average price per item paid was $32.35.
Amazon’s success during this year’s Prime Day demonstrates the tremendous growth and appeal of the e-commerce giant’s annual sales event.
Amazon’s Strong Sales Drive Stock Price Up by 2%
Amazon’s assurance that sales were strong has convinced investors, leading to a 2% increase in the company’s stock price. As of Thursday morning, Amazon stock is valued at $133.35, contributing to a year-to-date gain of 59%.
Prime Day Boosts Amazon’s Stock Price
Historical data shows that Amazon’s stock price tends to rise following Prime Day, as reported previously. Between 2015 and 2022, the stock experienced an average increase of 0.4% the day after Prime Day ended, 1.3% in the week after the event, and 4.4% in the month that followed, according to Dow Jones Market Data.
Positive Outlook for Amazon’s Stock
Tigress Research has raised its price target for Amazon stock from $192 to $204 and has reiterated a Buy rating. This new price target suggests a potential upside of over 50% from the current stock price.
Analyst Ivan Feinseth explained, “Ongoing growth in Prime membership, innovation, digital advertising, and market share gains, along with the ability to optimize and expand while adding and expanding AWS users, should provide further upside to our current expectations.”
In conclusion, Amazon’s strong sales performance continues to impress investors, resulting in a positive trajectory for the company’s stock price.