As Prime Day kicks off, many analysts are predicting record sales numbers, with Coresight Research betting on a record $3.4 billion in sales. If accurate, this would represent a 40% increase from 2017’s record-setting $2.4 billion in sales. Shares rose 0.5% to $1,813.03, eclipsing its previous record high.
This year’s Prime Day comes with an added bonus as special discounts will be offered at all Whole Foods stores. Amazon's latest bets seem to be paying off as its Prime membership service and content library remains unmatched by any e-commerce platform or retailer on the market.
Research has shown the average Amazon prime member purchases 3.5 times a month from the mega retailer, as opposed to the 2.3 times a month the average Amazon member purchases. With this in mind, investors have taken comfort in the fact that, despite raising prices for its annual membership, Prime membership totals over 100 million members globally.
By some estimates, Amazon will encompass more than half of all e-commerce purchases in the U.S. by 2019. Beyond this, Amazon is making big moves into the pharmaceutical industry, among others.
According to CNBC, Amazon’s shares have risen 1.9% on average over the last three Prime seasons, outperforming the entire S&P 500 each time. With some targets aimed at $2,000 and above, investors are scrambling to cash in those corporate wellness programs and hop on the gravy train.
Even with stock prices rising to record levels (56% increase year to date), Amazon is expected to release its earnings just next week, which could add more gains in the near future. Even if you’re late to capture the gains earned from Amazon’s international Prime Day, there are still plenty of opportunities to make a sizable return on Amazon over the upcoming quarter.
