SEATTLE - Amazon (NASDAQ: NASDAQ:AMZN) has announced that Prime Day 2024 marked the company's most successful Prime Day event to date, with a record number of items sold over the two-day period. The event saw Prime members worldwide take advantage of deals across more than 35 categories, leading to unprecedented sales figures.
The company reported that millions more Prime members participated in this year's event compared to Prime Day 2023, driven by significant savings on a wide range of products. The surge in shopping activity also led to a record number of new Prime memberships in the three weeks preceding Prime Day, with millions of new sign-ups globally.
Doug Herrington, CEO of Worldwide Amazon Stores, attributed the event's success to the millions of Prime members, Amazon employees, delivery partners, and sellers. He emphasized that Prime Day celebrates the savings, selection, and convenience that the membership offers.
Independent sellers, predominantly small and medium-sized businesses, experienced substantial success, selling over 200 million items during the event. Amazon's own devices, subscriptions, and services, including Amazon Music Unlimited and Kindle Unlimited, were also among the popular choices for shoppers.
In an effort to reduce their carbon footprint, Prime members in the U.S. chose to consolidate their deliveries, resulting in an estimated saving of 10 million trips. Additionally, Rufus, Amazon's new AI-powered conversational shopping assistant, and Amazon Inspire, an in-app shopping experience, played significant roles in assisting customers throughout the shopping event.
Prime membership provides a variety of benefits, such as free shipping on over 300 million items, exclusive shopping deals, a vast collection of entertainment on Prime Video, and ad-free music streaming. Members also have access to health care services and unlimited grocery delivery options.
The Prime Day event is part of Amazon's broader commitment to providing value, convenience, and diverse entertainment options to its Prime members. This news is based on a press release statement from Amazon.
In other recent news, Amazon's Prime Day event saw US online sales reach a staggering $7.2 billion on the opening day, according to data from Adobe (NASDAQ:ADBE) Analytics. This figure aligns closely with their prediction of $7.1 billion, marking an 11.3% increase from the same day last year. In a separate report, Adobe Analytics projected the total Prime Day sales to hit a record $14 billion, indicating a 10.5% rise from the previous year.
In the financial sector, Needham raised its price target on Amazon shares to $210 from $205, maintaining a Buy rating based on Amazon's expanding margins, particularly from its Generative AI initiatives. Needham's report also valued Amazon's live streaming platform, Twitch, at $46 billion. Meanwhile, Wolfe Research initiated coverage on Amazon with an Outperform rating and a $250 price target, citing expected growth in Amazon Web Services and retail margins.
However, Amazon faced a setback in the UK where the GMB union failed to gain formal recognition at an Amazon warehouse in Coventry, central England. This marks a blow to the union's effort to negotiate labor terms with Amazon. Despite this, Amazon remains one of the top ten private sector employers in the UK, with an approximate workforce of 75,000.
InvestingPro Insights
In the wake of Amazon's most successful Prime Day to date, it's important to look at the financial metrics that may be influencing investors' perspectives on the retail giant. According to real-time data from InvestingPro, Amazon's Market Cap stands at a robust $1.96 trillion USD, reflecting the immense scale of the company's operations and market influence.
The company's P/E Ratio is currently at 54.21, suggesting that investors are willing to pay a higher price for earnings, possibly due to expectations of continued growth and dominance in the Broadline Retail industry—one of the InvestingPro Tips that highlight Amazon's significant role in its sector.
InvestingPro data also reveals a Revenue Growth of 12.54% for the last twelve months as of Q1 2024, indicating a solid increase in sales that likely contributed to the success of Prime Day. Furthermore, the Gross Profit Margin sits at 47.59%, showing that Amazon retains nearly half of its revenue as gross profit—a testament to its efficiency and pricing power.
For investors and analysts looking to dive deeper into Amazon's financial health, InvestingPro offers additional insights. There are 10 more InvestingPro Tips available, which can shed light on aspects such as the company's cash flow, debt levels, and valuation multiples. These tips can be crucial for understanding the full picture of Amazon's financial standing and future prospects.
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