How might Prime Day affect the Amazon share price?
The online retailer's biggest shopping day of the year could boost the corporation's stock.
Amazon share price could be impacted by its fourth annual blockbuster Prime Day of sales that takes place July 15-16. The online retailer's stock is being watched by many investors before the crucial company event.
Amazon Prime Day not an immediate benefit to Amazon share price
Amazon Prime Day is a shopping extravaganza with deep discounts on millions of items. While Amazon didn’t release exact figures, sales were estimated to be $4 billion in global sales for 2018’s Prime Day. While the corporation’s sales have soared after the sales day, the stock has been volatile in the days following previous Prime Day events.
In 2016, Amazon share price fell 1.3% during its first Prime Day week. During 2017’s largest sales week, Amazon stock surged 2.5% in 2017. Amazon stock stayed mostly unchanged during Prime Day week in 2018.
While Amazon’s share price didn’t greatly increase immediately after Prime, Amazon stock soars in the long run. Amazon share price surged 353% overall since implementing Prime Day.
Yahoo Finance reporter, Heidi Chung, also noted that Amazon share price doesn’t always jump directly after Prime Day, but the sales day event is pivotal to Amazon’s revenue.
‘In terms of how Prime Day affects investors, the correlation wasn’t as strong as I had hoped for. But in terms of how important Prime Day is for the company, it’s very important,’ said Chung.
Learn more about trading Amazon and other stocks with IG.
What do economic experts expect for Amazon share price after Amazon Prime Day?
Economist, Stephen Guilfoyle, noted that he thought the recent volatility in Amazon stock could create opportunities for investors.
‘I'm loving the volatility in the stock and now we've seen almost a constant rally every day in Amazon. Then we've seen a couple of sharp intraday sell-offs that creates plenty of opportunity,’ said Guilfoyle.
Todd Rosenbluth, senior director of mutual fund research for the Center for Financial Research and Analysis [CFRA], said he expects Amazon’s share price and stocks of corporations selling products with the retailer to increase after Prime Day.
‘We at CFRA are really expecting that Prime Day is going to be a record-breaking event for Amazon,‘ said Rosenbluth.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Act on stock opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
