Amazon.com Inc.'s Prime Day 2020 could generate nearly $ 10 billion in sales, according to eMarketer forecasts, marking the start of the holiday shopping season.
Prime Day 2020 coming soon
In its Prime Day forecast, eMarketer expects revenue of $ 9,91 billion, with US sales of $ 6,17 billion. Amazon Prime Day will take place on October 13 and October 14.
Usually, the event is held in the summer but has been delayed due to the coronavirus pandemic. “Despite an uncertain economy, consumers will continue to spend a lot on e-commerce and actively seek out offers for the holiday season,” eMarketer wrote.
Amazon (Amazon shares - NASDAQ: AMZN) typically does not disclose sales numbers for the Prime Day event. JPMorgan analysts expect revenue of approximately $ 7,5 billion this year, up from the forecast of $ 5,3 billion last year.
“Importantly, we believe Amazon can benefit from an early start to holiday shopping, with Prime Day being a 'good' pull-forward that will help regulate QXNUMX demand,” said JPMorgan.
“We expect online activity to accelerate further during the holiday season and Amazon will enter the busiest quarter already seeing strong demand and lead times not yet normalized to pre-COVID-19 levels.
But we believe Amazon is well positioned to handle the holiday season wave, with the company increasing its warehouse square footage by 50%, including opening 100 new operational buildings in September, and Amazon Logistics (AMZL) set to deliver over 50% of all packages to Amazon fulfillment centers, thus reducing dependence on third-party forwarders ”. JPMorgan evaluates the success of Amazon shares with a price target of $ 4.050.
More and more seniors use Amazon
The company could also boost sales to a new demographic of shoppers who turned to e-commerce during COVID-19. "Before the pandemic, the history of e-commerce seemed clear: it was geared towards the younger, tech-savvy generation and focused on specific and pro-delivery categories, such as electronics and apparel," said Pedro. Palandrani, research analyst at ETF provider Global X.
“However, after the pandemic, older generations have realized that online shopping is not only a viable option for many of their needs, but also convenient and safe. With seniors increasingly using technology at much higher rates than expected, the trajectory of e-commerce growth now looks very different from what it was a few months ago.
For Prime Day, this means more new customers ”. Amazon's target price rose to $ 3.800 from $ 3.675 on Wednesday's Benchmark, which evaluates the purchase of the company's stock.
Shares of Amazon have risen 71% since the beginning of the year. The Amplify Online Retail (IBUY) ETF has gained 80,6% for 2020 so far. And the S&P 500 Index (SPX) has risen 5,1% year to date.
