Amazon gets a new optimistic forecasts on wall Street, as the company is soon to hold its annual sale, which promises to break all records in the history of the giant of e-Commerce.
Next week, October 13-14, Amazon (AMZN) will hold its largest annual sale Day Prime.
Every year Prime Day Amazon sets new records in sales, proving the global leadership of the company in e-Commerce. 2020 does not seem to be the exceptions and investors should be prepared for the fact that Amazon shares are likely to increase amid optimism in the run-up to and after the two-day event.
Past experience
In 2018 sales for the Amazon 48-hour sale amounted to about $4,19 billion in 2019, this figure increased by more than 70% to $7.16 billion, traditionally exceeding the forecasts of analysts.
In 2019, the company has sold over 175 million units to customers in 18 countries, including hundreds of thousands of its own device Amazon.
The circumstances of a pandemic
The conditions of a pandemic this year has become a factor even greater business growth of electronic Commerce Amazon. People who find themselves quarantined at home, increased the volume of purchases made via the Internet.
For the second financial quarter ended 30 June, Amazon posted a 97% increase in earnings per share to $10,30, which greatly surpassed the average wall Street at USD 1.46 earnings per share. Total quarterly revenue grew by 40%, which was also above analyst estimates.
Today, many experts point out that despite the easing of quarantine measures, buyers continue to purchase, given the transition of many employees to work at home and distance learning.
New Amazon device
The timing for conducting the sale may prove to be successful for the sales of recently introduced novelties Amazon. Pre-orders for the new smart and dynamics of the Echo display Echo Show became available about two weeks ago. However, drone with camera surveillance for home for $250, which attracted much attention, will be available for sales until next year.
The increase of members subscription Prime
In 2019, the company set a sales record for the Prime Day with “more than 100” subscribers, in January, Amazon CEO Jeff Bezos called the new figure of 150 million members Prime.
Considering the greatest number of new members Prime than ever before, and the fact that access to promotional items provided to participants free trial subscription Amazon can easily surpass your previous record Prime Day last year.
The possibility of making an early new year shopping
Due to the position uncertainty associated with the pandemic and the increasing burden on transport and logistics network Amazon, the company abandoned the idea to hold a Prime Day traditionally in the summer, and moved the event to October.
Today analysts say that the conduct of the sale shortly before the festive pre-Christmas shopping season may play in favor of Amazon.
Announcing the event in your press release, Amazon said: “the Prime Day of this year – a great opportunity for members of the Prime to do your holiday shopping early from the comfort of home and get more time to be with family and friends.”
Amazon shares have risen 69% since the beginning of the year, but are below the high of $3 548 made in early September. At the close of trading on Friday, shares fell nearly 3% to $3 125.
At the same time, Amazon shares recently got a new highest rating wall Street from Pivotal Research Group – price target was increased to $4,500. The expert Pivotal, pointed to the huge earnings potential of Amazon from online advertising.
