Amazon Gears Up For Prime Day 2024 With $2T Market Cap

Amazon.Com Inc AMZN is gearing up for Prime Day 2024, which will take place on July 16-17. The company aims to achieve significant sales growth.

This event came as Amazon’s stock price reached record highs, pushing its market capitalization past the $2 trillion mark.

Revived sales growth and robust bottom-line improvements have fueled Amazon’s recent stock performance, the Wall Street Journal reports.

Also Read: Amazon Expands AI Shopping Assistant Rufus to All US Customers As Prime Day Approaches

The hype around artificial intelligence has played a crucial role in boosting Amazon’s stock akin to other Big Tech giants led by Nvidia Corp NVDA.

Investors bet Amazon will maintain its current strategy without reverting to heavy investment phases.

Over the past four quarters, Amazon’s operating income surged by triple-digit percentages and will likely exceed $62 billion this year. This would bring the annual operating margin to nearly 10%, significantly higher than the 5% average over the past five years, WSJ reports.

According to Emarketer, this year’s Prime Day has the potential to generate around $13.3 billion in global sales, up 6% from last year.

Amazon’s advertising business, currently valued at $49 billion, is set to receive a further boost from introducing ads to Prime Video. Jefferies estimates this could generate about $2.9 billion in new ad revenue for Amazon this year.

Price Action: AMZN was down 0.16% to $194.17 premarket at the last check on Monday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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