BoFA is positive about the Prime Day
Amazon Prime Day is an annual event that brings together a curated selection of time-limited deals, discounts, and exclusive offers exclusively for Amazon Prime members. Amazon's highly anticipated Prime Day event is expected to generate 12 billion USD in gross merchandise value (GMV), according to Bank of America analysts. This represents 7.4% of the bank's projected 162 billion USD GMV for the third quarter, reflecting a slight increase from last year. Prime Day, a 48-hour period of exclusive deals for Amazon Prime members, will feature more deals than ever before and will also include third-party merchants participating in the event. New Prime members will have access to an extended 30-day free trial and a 10 USD shopping credit. While Prime Day is expected to have a small negative impact on daily sales leading up to and following the event, Amazon aims to provide its fastest delivery speeds ever. The company's stock has performed well this year, returning 54% year-to-date, surpassing the performance of the S&P 500 Consumer Discretionary sector. * [1]
Amazon partnered with Priceline
For the first time, Amazon is teaming up with travel booking site Priceline to offer exclusive discounts during its Prime Day shopping event. While consumer spending on retail has slowed down, the demand for travel experiences remains strong. Amazon aims to attract more Prime members by expanding its offerings, and travel companies are seeking opportunities to fill hotel rooms. During the 48-hour event, U.S. members will have access to deals, including an extra 20% off Priceline's Hotel Express deals, which already offer significant discounts on hotels. As the largest retailer in terms of market value, Amazon recognized the potential of collaborating with Priceline, a subsidiary of Booking Holdings. This partnership marks the first time a travel brand has participated in Prime Day, and Priceline is already advertising on various Amazon streaming and audio platforms.
As of May 2023, research firm Tourism Economics reported a 5.5% year-to-date increase in travel spending. Government data in the U.S. indicates that overall services spending in May was up 8% compared to the previous year, while spending on goods only saw a 2% increase. However, hotel demand has been declining, remaining below pre-pandemic levels for the third consecutive month. This collaboration between Amazon and Booking Holdings is not the first time the companies have worked together on Prime deals, as Booking.com has previously offered travel credits and discounts to Prime members in Germany and Austria. [2]
Rivian’s European vans will be in Germany
Amazon announced that it will introduce its first fleet of Rivian electric vans in Germany, marking a significant step towards its long-term goal of electrifying its transportation network. The deployment will include 300 electric vans that will operate in the Munich, Berlin, and Dusseldorf regions. This move is part of a larger 100,000-vehicle order that Amazon placed with Rivian in 2019, as Amazon is the largest shareholder in the U.S. electric vehicle maker. To cater to the unique needs of European cities, Rivian and Amazon have designed a specially designed van that is shorter and thinner than its U.S. counterpart. Amazon began introducing Rivian vans in the United States last year, and currently has over 3,000 vans delivering packages across more than 500 cities and regions. The company aims to have 100,000 Rivian vehicles in its global fleet by 2030. [3]
Amazon’s stocks overview
Stocks came to the market in May 1997 and the price was only 0,09 USD. Over their history on the stock market, stocks have performed an unbelievable growth of more than 141,000%. Even though the current price is at 127,13 USD per stock, this is not the highest the company has been. Peak was reached in July 2021, when the price of a stock was 178,68 USD, which means that at that point, the growth has been more than 255,000%. Amazing numbers. And from the look of the chart, we can expect a bullish trend.
Movement of Amazon stocks in the last five years. (Source: Google Finance) *
Conclusion
Prime Day is one of the biggest events in the e-commerce world, and Amazon is one of the biggest, if not the biggest company in this sector. They have shown strong results in the past, and we believe that they will continue to do so in the future. They are constantly looking for improvements and innovations, and that is the reason that we believe Amazon’s stock are worth checking and following their price.
Peter Svoreň, executive director of Apme FX
* Past performance is no guarantee of future results.
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[1] https://www.investopedia.com/amazon-prime-day-bofa-expects-usd12-billion-merchandise-sold-7558482
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