Post estimates that the event could add $12.4 billion in incremental second-quarter gross merchandise value (GMV) compared to normal sales for those days, along with $8.5 billion in incremental revenue. In addition, strong retail sales data through May, based on Bank of America debit and credit card data, suggests that Amazon is on track to meet or beat the high end of its second-quarter revenue guidance of $199 billion.
However, the earlier timing of Prime Day will likely create a meaningful year-over-year comparison headwind for the third quarter. Nevertheless, Post still expects Amazon (AMZN) to gain share in online retail, with Prime Day highlighting the value of a Prime membership through better prices, broad selection, and fast delivery. This will also be the first Prime Day using the Alexa for Shopping brand, which Amazon is likely to promote heavily to boost awareness and engagement.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 45 Buys and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $319.14 per share implies 30.6% upside potential.Disclaimer & DisclosureReport an Issue
