With Amazon (NASDAQ:AMZN) set to host its first-ever Big Spring Sale beginning on Wednesday, March 20, analysts at BofA believe the event could add modest GMV growth for the company in Q1.
The event will run for six days through to March 25. The investment bank maintained a Buy rating and $204 price target on Amazon in a research note Friday.
"Per Amazon, Prime members will have special access to a 'suite of exclusive deals" with "new deals [that] will drop each day,' however the event will also be accessible to customers without a Prime subscription," explained the firm.
"Analysts would expect some debate on event timing, which is at the end of the quarter, but the event could drive some upside to 1Q revenues, with modest margin pressure due to discounting," they added.
Elsewhere, BofA noted that Amazon has been gaining share due to faster delivery speeds and a growing assortment of items, while additional sale
events are becoming more frequent.
"Analysts remain constructive on continued Retail Margin expansion that should be supported by robust advertising growth (aided by ramp of Prime Video ads) and continued optimization of Amazon's regionalized network," concluded BofA.