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 logo before Amazon Prime Day Source: Bloomberg

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.

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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.


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