Amazon's 2017 Prime Day could last 30 hours and be held at some point in mid-July, the analyst noted. In fact, shares of Amazon outperformed the broader S&P 500 index by six points between the announcement of the event and the actual event. However, the trend was short-lived as Amazon's stock performed in line with the index last year.
But there are some encouraging signs to suggest a boost to Amazon's stock, the analyst hinted. For instance, the online retailer is requiring retailers to hold higher levels of inventory to satisfy a spike in demand from the longer selling event. In addition, Amazon can also take advantage of the event to "aggressively" promote its many products and features, such as Prime Video, Prime Now, Echo devices, and Fresh grocery in certain cities.
Meanwhile, physical retailers "kept it cool" on Prime Day last year and "largely stayed out of the promotional ritual, Walmsley added. This also bodes well considering some data points show that just under 70 percent of all online shoppers are expected to check out Prime Day this year and over 75 percent of households with a six-digit income plan on buying something.
Shares of Amazon remain Buy rated with an unchanged $1,150 price target. Related Links:
Amazon Names The 20 Best Books Of 2017; Did Your Favorite Make The List?
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