Markets

Amazon Prime Day Sales Topped $10.6 Billion, an Analyst Says

Amazon (NASDAQ: AMZN) saw Prime Day sales skyrocket 49%, according to one Wall Street analyst, hitting $10.6 billion.

The e-commerce giant is also estimated to have sold 260 million items over the course of the two-day event, a 47% increase from last year.

Woman delivering an Amazon package

Image source: Amazon.com.

Amazon delayed its annual sales extravaganza this year because of the coronavirus pandemic, moving it from its typical July date to October. The retailer reported this year's Prime Day was its biggest ever for small and medium-size businesses, which sold some $3.5 billion worth of goods. That would equate to fully one-third of all the estimated sales made on the platform.

Thomas Champion, an analyst with Piper Sandler, told investors in a research note reported by theFly.com today that his analysis suggests first-party sales, or those products Amazon lists for sale itself, were heavy this year. He believes the e-commerce site's fourth-quarter total gross merchandise could get a 7% boost this year because of Prime Day, even as it was already experiencing heavy demand.

Because the retailer is now launching its follow-up Holiday Dash event, which will run through Christmas, the possibility it pulls enough sales forward could result in "potentially relieving logistics strain during the holiday season," Champion said.

He has an overweight rating on Amazon's stock, which he left in place, along with his target price of $3,860 per share, which is 18% above where shares currently trade.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool has a disclosure policy.

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