Amazon (NASDAQ:AMZN) is set to host a two-day shopping event, "Prime Big Deal Days", starting October 10, 2023. This announcement comes a little over two months after its last Prime Day sale and over a month before the Black Friday weekend. The event is a continuation of Amazon's commitment to providing member-exclusive shopping events with significant discounts.
The upcoming event follows the company's previous "Prime Early Access Sale", which was held in October last year. During these events, new deals appear as often as every five minutes at certain times, and members are encouraged to register for exclusive lists that offer special deals on selected products.
These Prime Day events have historically driven sales growth for Amazon. The inaugural "Prime Early Access Sale", held on October 11 and 12, 2022, marked an improvement in inventory conditions and showcased innovative approaches to discounting products to stimulate sales.
Last year's Prime Early Access Sale surpassed management's expectations, as highlighted by Chief Financial Officer Brian Olsavsky during their fourth-quarter earnings call. Moreover, Amazon's Prime Day event in July was noted for its record-breaking first-day sales.
The e-commerce giant has been experiencing a gradual acceleration in revenue growth over recent quarters. Following an 8.5% year-over-year increase in Q4 2022, revenue rose by 9.4% in Q1 2023 and 10.8% in Q2 2023. This upward trend was largely driven by the company's e-commerce segment, where sales growth improved from 2% in Q4 2022 to 3% and 5% in Q1 and Q2 2023, respectively.
Analysts forecast this growth momentum will continue into the second half of the year, predicting an average revenue increase of 11.4% in Q3 and 11.6% in Q4. Given Amazon's track record with sales events, these estimates may prove to be conservative, particularly considering the company's current trend of accelerating growth.
While the upcoming shopping event is not expected to significantly alter Amazon's long-term stock performance, it remains a crucial factor in driving the company's accelerating revenue trends. As such, investors should consider the stock's value independently of the event but also recognize the potential boost that Prime Big Deal Days could provide to Amazon's top-line growth.
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