Amazon Stock: Prime Day & AMZN Analysis

Amazon Stock: Amazon Prime Day, a promotional 30-hour period only offered for Amazon Prime Members, started in 2015. On Prime Day, which started today, Amazon (NASDAQ:AMZN) offers hundreds of thousands of deals. Furthermore, new deals begin every five minutes. This year, Amazon is offering Prime members 6 extra hours of time to shop. This will provide a significant boost to the total Prime Day sales for the company.

In 2016, it is estimated Prime Day resulted in $500-600 million in sales for Amazon. Although, Prime Day this year should be much stronger than last year considering customers reported problems with adding deals to their carts.

Services Amazon Offers to Prime Members

In addition to general discounts on tens of thousands of products offered on Amazon, Amazon Prime offers its members the following services:

Prime Video: thousands of movies and tv shows for streaming along with original content.

Amazon Music: over 2 million, ad-free songs for music lovers.

Kindle Unlimited: over 1 million titles in the Kindle store.

Amazon Audible: free audiobooks and premium podcast content.

Free Trial of Prime

To see what Amazon Prime is all about, click this affiliate link to start a free trial of Amazon Prime.

 



Analyst Ratings on Amazon Stock

According to Nasdaq's page on Amazon stock, 20 of 29 analyst firms have a "strong buy" recommendation. Likewise, 4 of the analyst firms have a "buy" rating and another 4 of the firms have a "hold" rating on Amazon stock. Only one analyst firm has a "sell" recommendation on Amazon. Despite consensus of Amazon's blue chip status, the number of analysts bullish on Amazon declined over the past several months.

Stephen Ju, of Credit Suisse, maintained his outlook that Amazon will outperform the overall market in a note given to clients back in April. As Business Insider reported:

Amazon has been investing heavily in fulfillment and data centers, and Ju thinks some of those investments will start to pay off this quarter, improving margins for the retail behemoth. Those investments will also help balance out what profit Amazon loses by offering so much free shipping to customers. Credit Suisse notes Amazon's "push to invest should serve as positive demand indicators across its consumer and enterprise-facing businesses." Business Insider

Our Neutral Outlook on Amazon Stock

Despite the expected great success of Amazon's 2017 Prime Day, The Stock Trader Blog is maintaining a neutral outlook on Amazon stock. Personally, I believe this year's Prime Day sales are already priced into Amazon stock. Today, AMZN stock closed at $996 per share, up roughly 1.8%. Indeed, this price action alone added several billion dollars to Amazon's market capitalization, which now stands at over $480 billion. Therefore, we are not adding Amazon stock to either our List of Bullish Opinions or our List of Bearish Opinions.







Eric Bruin

Eric Bruin

Founder. Kelley School of Business ’17. Write about stocks and business news. Contact for business inquiries or to write articles for The Stock Trader Blog.

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