Amazon Remains 'Best Idea' In E-Commerce This Holiday Season, JPMorgan Analyst Says

JPMorgan analyst Doug Anmuth sees strong online sales growth this holiday season and points to Amazon.com Inc. AMZN as the firm's "Best Idea" for capturing the momentum.

Here's a look at what Anmuth expects from the e-commerce giant during the 2024 holiday shopping season. 

Expert Ideas: Anmuth expects "solid" online holiday sales growth of 7.5% year-over-year, slightly below the nine percent sales growth achieved last year. 

The JPMorgan analyst noted consumers are still dealing with elevated inflation and higher interest rates and said that Amazon sees shoppers trading down, hunting for deals and remaining price-conscious through the holiday season. 

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The 2024 holiday season is the shortest since 2019, with only 27 days between Thanksgiving and Christmas, and retailers are running early promotional cycles to support demand and ease stress on retail networks. Anmuth said Amazon is expected to hire 250,000 holiday workers, the same amount as last year which reflects the company's increased cost discipline and efficiency. 

Amazon will be streaming a live NFL game on Black Friday which JPMorgan sees supporting growth in both advertising and e-commerce revenue during the holiday weekend. The analyst said Amazon benefits from its "high-intent" customer base and its ability to turn an ad into a transaction. 

Anmuth highlighted Amazon's faster delivery speeds as the company continues to expand its same-day/one-day delivery offerings. The JPMorgan analyst highlighted more than 40 million customers ordered same-day in the third quarter, an increase of more than 25% from the same period last year. 

The analyst pointed to Amazon's market share of approximately 45% of U.S. e-commerce and views the company as well-positioned to drive demand with its fastest shipping speeds ever during the 2024 holiday season. 

AMZN Price Action: According to Benzinga Pro, Amazon shares ended Wednesday's session 0.85% lower at $202.88.

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