Amazon Prime Big Deal Days set October record

SEATTLE - Amazon (NASDAQ: NASDAQ:AMZN) announced that its Prime Big Deal Days event has become the largest October shopping occasion in the company's history. The two-day event witnessed a surge in Prime member participation, surpassing last year's numbers in sales and items sold. Prime members globally saved over $1 billion, benefiting from millions of deals on a range of products, from electronics to apparel.

The event showcased record-breaking sales for independent sellers, outperforming the previous year's Prime Big Deal Days. Prime members enjoyed discounts on popular items such as the Le Volume 2-in-1 Titanium Blow Dryer Brush and Superhero Mascara. Amazon's CEO of Worldwide Stores, Doug Herrington, stated that this marks a robust beginning to the holiday season and emphasized the company's commitment to delivering value and convenience.

During the event, Prime members utilized Amazon's innovative shopping tools such as Rufus, the AI-powered assistant, Inspire, and Amazon Lens to enhance their shopping experience. These features assisted customers in finding tailored deals and discovering new products.

Amazon's holiday savings will continue with various upcoming events, including the 4th annual Holiday Beauty Haul and discounts on select toys through October 31. Additionally, Prime Video will exclusively broadcast the NFL Black Friday Football game on November 29, offering viewers the chance to shop deals while enjoying the game.

In the lead-up to the event, Amazon saw a record number of new Prime sign-ups, reflecting the program's expanding reach. Prime membership offers benefits such as fast, free delivery and exclusive access to deals, with over 300 million items eligible for free shipping in the U.S.

The information for this report is based on a press release statement.

In other recent news, Amazon has garnered attention from analysts and stakeholders alike with its recent developments. BMO Capital Markets has maintained an Outperform rating on Amazon, reiterating a $230 target, based on the company's logistics and operational capabilities. The firm's confidence is bolstered by Amazon's strategic move to eight regional networks and the implementation of the picking robot "Sparrow," which is expected to drive automation and reduce operating expenses.

DA Davidson also maintains a Buy rating on Amazon, with a $235 price target, highlighting the company's ongoing investments in its supply chain. The company is expanding its delivery stations and automating its fulfillment centers to reduce costs and increase efficiency. Amazon has also integrated Apple (NASDAQ:AAPL) TV+ into its Prime Video service, marking a significant collaboration aiming to enhance the range of streaming content for subscribers.

However, Amazon's involvement in a carbon offset credit deal has raised concerns among Indigenous organizations in Brazil, claiming they were excluded from discussions. The deal, part of the LEAF Coalition initiative, is intended to support Amazon rainforest conservation.

On the financial front, Cantor Fitzgerald has adjusted its price target for Amazon to $210, citing potential shortfalls in fourth-quarter 2024 guidance due to seasonal slowdown and margin pressures. Conversely, Evercore ISI maintains an Outperform rating with a $240 price target, anticipating significant market opportunity for Amazon's Project Kuiper, despite projected costs. These developments underscore Amazon's continued investments and challenges in its various sectors.

InvestingPro Insights

Amazon's successful Prime Big Deal Days event aligns with the company's strong financial performance and market position. According to InvestingPro data, Amazon boasts a substantial market capitalization of $1.95 trillion, reflecting its dominant position in the e-commerce and cloud computing sectors.

The company's revenue growth remains robust, with a 12.32% increase over the last twelve months, reaching $604.33 billion. This growth is consistent with the record-breaking sales reported during the Prime Big Deal Days event. Amazon's ability to attract new Prime members and drive significant sales during promotional events contributes to its impressive financial metrics.

InvestingPro Tips highlight Amazon's strength as a "prominent player in the Broadline Retail industry," which is evident in the success of its shopping events and the continuous expansion of its Prime membership base. The company's profitability is also noteworthy, with InvestingPro data showing a gross profit of $290.34 billion and an operating income of $54.38 billion over the last twelve months.

While Amazon's P/E ratio of 43.27 might seem high, an InvestingPro Tip suggests that the company is "trading at a low P/E ratio relative to near-term earnings growth." This indicates potential for future value creation, especially considering the success of events like Prime Big Deal Days.

For investors seeking more comprehensive insights, InvestingPro offers 11 additional tips for Amazon, providing a deeper understanding of the company's financial health and market position.

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