Amazon Prime Day total revenue to grow 5%
JPMorgan Chase forecasts Amazon (AMZN)’s July 12-13 Prime Day event will bring the company $3.8 billion in incremental revenue, up 7% from a year ago; total Prime Day event revenue expected will grow 5% to $5.6 billion.
JPMorgan Chase said that Amazon returned Prime Day to mid-July and will again focus on summer shopping and back-to-school shopping, but the overall macroeconomic background and its impact on consumer demand cannot be ignored.
In terms of logistics, the bank thinks things are improving for Amazon. It noted: “Importantly, over the past two years, Amazon has doubled its fulfillment and distribution network and nearly doubled its workforce to about 1.6 million. As such, it is estimated that Amazon is well positioned for the high demand for Prime Day fully prepared. This activity will help the company to take advantage of some excess capacity.”
It is understood that Amazon’s delivery speed has approached or exceeded the level of early 2020. Additionally, it is less reliant on third-party shippers.
While Prime Day 2022 may have less hype than previous years, hosting Prime Day events in other countries and later this summer in India, Saudi Arabia, the United Arab Emirates and Egypt will bring more growth to Amazon.
JPMorgan maintained an “overweight” rating on Amazon with a price target of $175.