AMZN Stock Will Have 2 Amazon Prime Day Catalysts in 2022

  • Amazon (AMZN) stock is up slightly today on news that the company will hold two Prime Day sales events this year.
  • Analysts say a second Prime Day could give recently split AMZN stock a much needed catalyst.
  • Critics say Amazon relies too much on events and special deals to boost sales, watering them down in the process.
A photo of Amazon's (AMZN) logo on the side of a building.
Source: Ioan Panaite / Shutterstock.com

What’s better than Amazon’s (NASDAQ:AMZN) annual Prime Day? Apparently two Prime Day sales events.

Recently, the e-commerce giant announced that, for the first time ever, it will hold two Prime Day events this year. Amazon says it plans to host the first Prime Day on July 12 and 13, then host a second event during the busy holiday shopping season at year’s end. Now, some analysts are applauding the decision; Jefferies says the new plan could be a big catalyst for AMZN stock.

AMZN stock is down 33% year-to-date (YTD) at around $112 per share. The company split its shares on a 20-for-1 basis at the start of June.

What’s Happening with AMZN Stock?

Amazon says it has already started to let third-party merchants know about the new “Prime Fall” event that will occur in the fourth quarter of 2022, close to or during the month of December. A notice posted on Amazon’s internal seller portal confirms as much, although it doesn’t list specific dates.

This event at the end of 2022 should help bolster sales during the holiday season. Originally, Prime Day took place during the year-end holidays, but it was moved to the summer during the pandemic. Now, Amazon seems to be getting the best of both worlds, hosting twin events in both the summer and over the holidays.

Amazon could use a Prime Day boost, too. This April, shares slumped after the company reported its “slowest quarterly growth in years.” Adding a second Prime Day could revive interest in the event as well; some analysts and shareholders have expressed concerns that the event lost its luster during the pandemic.

Jefferies, for one, appears to be in favor of the company holding two Prime Day events this year, forecasting that the dual sales will contribute $8.1 billion in gross merchandise volume (GMV). However, others say the company is to blame for watering down Prime Day by holding multiple sales throughout the year. Last fall, Amazon held its first beauty products sales event. This past May, it also launched a Pet Day sales event.

What’s Next for Amazon?

AMZN stock got a small boost this morning on news of the two Prime Day events, although shares are now down 2% today. However, the big impact of Prime Day is how it boosts Amazon’s revenue. Any real impact from Prime Day will be reflected on the balance sheet in upcoming quarters and ultimately boost shares over the long term.

On the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.


Article printed from InvestorPlace Media, https://investorplace.com/2022/06/amzn-stock-will-have-2-amazon-prime-day-catalysts-in-2022/.

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