Amazon.com Inc. (NASDAQ: AMZN) delayed its annual Prime Day earlier this year, due to supply chain constraints caused by the Coronavirus. Usually falling in July, the company has now announced that Prime Day will be held on October 13 and 14.
Prime Day usually outperforms Black Friday for the company. It’s a special event where shoppers are offered special perks and discounted rates.
In a recent statement, Jamil Ghani, the Vice President of Amazon Prime, said that “We think Prime Day this year will be bigger than it has ever been.”
Exclusive Deals for Prime Members
In addition to being Amazon’s biggest sales event of the year, Prime Day is an opportunity for the company to showcase its in-house products and Prime subscription service.
Most of the specials that fall on Prime Day are exclusive to Prime members. The service, which costs $120 per year, includes access to Amazon Music, Movies, and TV, as well as free shipping on orders.
There are more than 100 million members around the world who are subscribed to Prime. This number is likely to increase in October.
Amazon has performed exceptionally well this year, despite the Coronavirus Pandemic causing global economic disruption. When the company reported quarterly earnings in June, it revealed a total revenue of $88.9 billion, and an income of $5.2 billion. Revenue was up 40% from the previous year, while income doubled.
As consumers have chosen or been forced to shop from home, depending on local restrictions, Amazon has become the e-retailer of choice. With products that cover everything from groceries and household goods to auto parts and electronics, consumers can cover all their typical purchases.
Will Prime Day Impact Stock Confidence?
Stocks have been falling in recent days with trade tensions and U.S. sanctions causing uncertainty in the markets. The upcoming U.S. Presidential Election is also weighing heavily on the minds of investors.
Amazon’s stock is down -9.01% over the last month, but it has outperformed the market when looking at the whole year. Year to date it is up 67.50%, and most analysts believe the current market dip represents a strong buying opportunity.
Prime Day is likely to bolster what has already been a strong year for the company, and it should contribute to the best full-year financial figures that investors have seen so far.
Long-term investors should consider this powerful growth stock as it is well established as the best e-commerce performer.
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