Citi analysts told investors in a note Friday that the firm is incrementally positive on Amazon's (NASDAQ:AMZN) e-commerce business after what they believe are "relatively positive results" from Amazon's annual Prime Day event held from July 11 to 12.
Amazon said on Thursday that this year's Prime Day event was bigger than ever, with Prime members purchasing more than 375 million items. It was the "single largest sales day in company history," Amazon said.
"On PD Day 1, Prime Members purchased 375M+ items (+25% Y/Y) and saved $2.5B+ (+47% Y/Y) and we note Adobe suggests US PD sales rose 6% Y/Y (we note PD contributed ~400 bps to overall sales growth in '21 and' 22)," Citi analysts wrote, who have a Buy rating and $145 price target on the stock.
"Amazon highlighted Home, Fashion, and Beauty as key verticals and we believe greater adoption of its advertising products improved conversion rates while Buy with Prime expanded Prime Day beyond Amazon.com."
At BofA, analysts who have a Buy rating and $154 price target on Amazon, said Prime Day units were very strong, meaning share gains are likely.
"The 375mn+ unit metric is up 25% y/y vs. 'more than 300mn' for Prime Day 2022, with growth accelerating 5pts from 20% implied unit growth last year. Discounting also seemed heavy; Amazon indicated members saved >$2.5bn (+47% y/y vs $1.7bn last year) 'across the Amazon store,' suggesting further savings with Buy with Prime," they said.
Wells Fargo analysts believe the Prime Day release suggests an above-expectation GMV and revenue growth.
"We believe Prime Day represented 4% of 3Q:22 NA + Int'l segment revs. WFSe estimates $10.3B GMV vs. 2022 $8.3B, increase commensurate with unit growth," they said, maintaining an Overweight rating and $159 price target on Amazon.
"Strong Prime Day could represent demand 'pull-forward', but believe it's likely a positive read-through on 3Q revenue trajectory (WFSe +10%). Adobe projected 6-7% growth, though we believe that estimate is irreconcilable with reported figures," they added.