Amazon reports record holiday sales, small businesses thrive

SEATTLE - Amazon (NASDAQ: NASDAQ:AMZN), the $2.22 trillion market cap retail giant, announced today that its Black Friday Week and Cyber Monday sales event, spanning from November 21 through December 2, marked its most successful holiday shopping period to date when compared to the same 12-day period in previous years. This year's event not only recorded the highest sales but also the largest volume of items sold, building on the company's impressive 11.93% year-over-year revenue growth.InvestingPro analysis shows Amazon's financial health score is rated as "GREAT," with 31 analysts recently revising their earnings expectations upward for the upcoming period.

The sales event proved to be especially significant for independent sellers on Amazon’s platform, most of whom are small to medium-sized businesses. They experienced their largest-ever sales during this period, with over 60% of the total sales in Amazon’s store coming from these independent sellers. Popular items from small businesses, including electronics, toys, and beauty products, were among the top sellers.

Customers took advantage of the deals on offer, purchasing millions of Amazon's Echo and Fire TV devices, with the Echo Dot and Fire TV Stick 4K being among the event's best sellers. In the United States, electronics, toys, and beauty were the leading product categories, with items such as Beats headphones, Samsung (KS:005930) TVs, Barbie dolls, Play-doh, Shark vacuums, and Medicube beauty devices being highly sought after.

Doug Herrington, CEO of Worldwide Amazon Stores, stated that customers saved billions of dollars during the event and emphasized that the company is prepared to offer more savings throughout the holiday season. Amazon aims to continue providing value to its customers with a variety of deals and fast, convenient delivery options for Prime members, including Same-Day Delivery on everyday essentials.

An independent study by ecommerce analytics firm Profitero found that Amazon's prices were, on average, 14% lower than other leading U.S. retailers entering the holiday season, marking the eighth consecutive year of Amazon leading in price competitiveness.

Furthermore, Amazon is leveraging generative AI technology to enhance the customer shopping experience. Features like Rufus, Amazon’s AI shopping assistant, and Amazon Lens assist customers in finding and selecting products more efficiently.

The Virtual Holiday Shop, a new 3D immersive shopping experience, offers over 300 holiday gifts and toys, allowing customers to browse and purchase in a virtual environment akin to a physical store. For those seeking gifting inspiration, Amazon's Holiday Shop and Virtual Toy Shop provide a wide range of options, including influencer-curated deal selections.

Amazon reassures customers of a secure shopping experience with its A-to-z Guarantee, covering products sold worldwide in the event of any issues with delivery or condition. Prime members benefit from free shipping on a vast selection of items and convenient delivery options. The extended holiday returns window offers additional flexibility for returns on most items purchased during the holiday season.

This report is based on a press release statement from Amazon.For a deeper understanding of Amazon's financial performance and future prospects, including over 30 additional ProTips and comprehensive valuation metrics, visit InvestingPro. The platform offers exclusive access to detailed Pro Research Reports, transforming complex Wall Street data into actionable intelligence for smarter investing decisions.

In other recent news, Amazon reported an impressive revenue growth of 11.93%. MoffettNathanson reaffirmed its Buy rating on Amazon shares, indicating a positive outlook for the company's profitability, particularly in its emerging markets. Piper Sandler also confirmed its Overweight rating on Amazon's shares, following discussions about the company's strategic developments and expansion plans.

Amazon has been making significant strides in the nuclear energy sector, committing over $500 million to advance nuclear energy technologies. This aligns with the company's Climate Pledge to achieve net-zero carbon emissions by 2040.

The e-commerce giant witnessed a successful Cyber Weekend, with a 9% increase in e-commerce sales in the United States. Additionally, US consumers set a new spending record on Black Friday with $10.8 billion in purchases.

Redburn-Atlantic has raised Amazon's stock target to $235.00 from the previous $225.00, reiterating a Buy rating, due to the company's leadership in the artificial intelligence sector. These are some of the recent developments that have shaped Amazon's operations and strategic decisions.

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