Amazon.com Inc (NASDAQ: AMZN) looks to lure U.S. shoppers on Tuesday with deeper discounts on a wide range of goods and services during this year's "Prime Day" 48-hour shopping event, including its first-ever travel discounts.
CFRA Research analyst Arun Sundaram said Amazon's U.S. Prime Day discounts this year are mostly deeper, marking 60% off Gap, Inc (NYSE: GPS) clothing, 50% off on Sony Group Corp (NYSE: SONY) headphones, and 40% off Peloton Interactive, Inc (NASDAQ: PTON) exercise bikes, Reuters cites Bank of America.
According to Adobe Inc (NASDAQ: ADBE), in 2022, U.S. online sales during Amazon's Prime Day shopping event reached nearly $12 billion, up 8.5% year-on-year.
Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, said Amazon Prime sales growth would be slower this year due to post-pandemic recovery, with consumers looking to spend more on experiences, travel, and entertainment. He predicted Prime Day 2023 might add about $4 billion - $6 billion of incremental revenue for Amazon, up 10% - 16% year-on-year.
Criteo S.A.'s (NASDAQ: CRTO) Global Chief Revenue Officer Brian Gleason said such discounts may appeal more to shoppers in a more challenging economy.
Amazon is also offering its first-ever Prime Day travel discounts this year, partnering with travel booking site Priceline to offer an additional 20% off on Priceline's Hotel Express deals, which offers 60% off hotels.
Prime Day will likely encounter stiff competition from other retailers like Walmart Inc (NYSE: WMT), Best Buy Co, Inc (NASDAQ: BBY).
Bank of America projects that this year's Prime Day sales event will generate $12 billion in gross merchandise value (GMV) for Amazon in the U.S., up 12% Y/Y.
Reportedly, Amazon plans yet another Prime sales event this year. The company has notified its marketplace vendors to submit deals for a "Prime Fall Deal Event" beginning in the fourth quarter.
Price Action: AMZN shares traded higher by 0.72% at $128.03 premarket on the last check Tuesday.