Social Media and 'Buy Now, Pay Later' Trends Influence Amazon's Record-Breaking Prime Day: Analyst
Portfolio Pulse from Anusuya Lahiri
Amazon's annual Prime Day event saw record gross merchandise volume (GMV) and unit sales, with over 375 million items sold worldwide, a 25% increase YoY. Prime Day GMV increased to $12.7 billion, up $600 million from 2022. The extension of Prime Day to third-party merchants using Buy with Prime may boost 3Q margins. The event also saw a 20% increase in 'Buy Now, Pay Later' (BNPL) orders. Peloton Interactive offered discounts on its bikes, ranking #2 and #17 among Amazon's best-selling exercise bikes. Despite the success, JMP Securities analyst Nicholas Jones does not expect significant movement in Amazon's shares in response to Prime Day.
July 18, 2023 | 5:54 pm
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NEUTRAL IMPACT
Amazon's record-breaking Prime Day sales and increased 'Buy Now, Pay Later' orders may boost 3Q margins. However, significant movement in share price is not expected.
Despite the record-breaking sales, the analyst does not expect significant movement in Amazon's shares. However, the increased utilization of its fulfillment network by third-party merchants and the rise in BNPL orders could positively impact 3Q margins.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Peloton Interactive's discounted bikes ranked #2 and #17 among Amazon's best-selling exercise bikes during Prime Day.
Peloton's discounts on its bikes led to high sales during Amazon's Prime Day, which could potentially boost its revenues.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50