Amazon (AMZN) on Friday pumped up promotions of its annual Prime Day sales extravaganza set for next week, announcing a bundle of marked-down products. Amazon stock rose.
The two-day event takes place on Oct. 14-15. It normally occurs in July but was postponed because of the pandemic. That delay, however, could have big benefits for Amazon.
“The nearly three-month delay will result in a different focus: de-emphasizing products for summer and back-to-school, and making the event an early lead-in to the holiday season,” said Andrew Lipsman, analyst at eMarketer.
“Amazon Prime Day this year will be unlike any other since its debut five years ago,” he said. “Against the backdrop of a pandemic and recessionary headwinds, this year’s event promises significant changes that will shake up the entire retail landscape heading into the holidays.”
Amazon does not release sales figures for the event but eMarketer estimates it will see a 43% jump in sales from last year to $9.9 billion.
Amazon stock climbed 3% to close at 3,286.65 on the stock market today.
Numerous Amazon Products On Sale
As it has done each year, some of the best deals will be Amazon’s own products. This includes Amazon’s line of smart speakers and various products that bring internet streaming to TVs, such as the Fire TV Cube. Amazon is also offering discounts on home security products from its Ring product line.
Prices also are marked down on numerous computer products, smart-home devices and products for the home, in addition to toys, games and apparel.
The discounts are only available to members of the Amazon Prime customer rewards program, which costs $12.99 per month or $119 per year. Amazon Prime customers receive numerous perks, including free shipping and access to its video and music library.
However, nonmembers can sign up for a free 30-day trial and get in on the action.
Prime Day officially starts at 3 a.m. ET on Tuesday and will last through Thursday. Prime members can get early access to select deals on device beginning Sunday, Oct. 11.
Buy Rating On Amazon Stock
CFRA Research analyst and Amazon follower Tuna Amobi maintained his buy rating on Amazon stock heading into the event. He expects this year’s event to be further buoyed by robust sales of home-related items and consumer essentials.
“This year’s event likely takes on its greatest significance yet, as the lockdown spurs further acceleration in e-commerce growth amid the underlying secular shifts,” he said in a note to clients.
Amobi added: “Also, we look to this event to provide another litmus test on Amazon’s shipping/logistics after its recent rollout of one-day delivery, with likely continued strong growth in its Prime membership base.”
Amazon stock is up 71% this year.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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