5 Amazon Prime Day Takeaways From This Bullish Analyst: 'Largest Single Sales Day Ever'

Shares of Amazon.com, Inc. AMZN were treading marginally higher on Friday morning amid the company’s Prime Day shopping event.

The company had a successful Prime Day despite increased competition, according to BofA Securities.

The Amazon Analyst: Justin Post maintained a Buy rating on Amazon while keeping the price target unchanged at $154.

The Amazon Thesis: The company is estimated to have sold approximately $12.1 billion in gross merchandise value (GMV) during its Prime Day event, Post said in a note.

Check out other analyst stock ratings.

Key Takeaways From Prime Day Event

• Amazon Prime members purchased more than 375 million items, notching the company’s “largest single sales day ever.” This was 13% higher than the figure reported last year.
• Unit growth was strong, estimated at 25%, “but close to $900bn in additional discounting and some modest additional ASP (average selling price) pressure,” the analyst wrote. This year’s Prime Day could represent 7.5% of GMV for the quarter, versus 7.2% last year.
• Amazon’s unit sales growth was significantly higher than the industry revenue growth rate of 6%.
• “We think the strong unit growth also suggests solid new Prime subscription sign-ups, high customer satisfaction and likely will aid Prime retention rates,” Post added.
• The company likely gained market share during its Prime Day event.

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AMZN Price Action: Shares of Amazon had risen by 1.25% to $134.98 at the time of publication Friday.

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