Investors are likely to hear a lot about
While Amazon doesn’t break out Prime Day’s sales, many analysts have estimated how much money it made from the event based on clues from the online retail giant.
For example, Amazon recently said the number of orders was
It’s important to note that sales from Prime Day won’t affect Amazon’s Q2 earnings directly, since the second quarter runs from April to June. However, Prime Daywill directly influence the all-important guidance part of the call.
“Amazon’s devices were a key focus of the Prime Day Event,” according to Pacific Crest. Amazon itself stated that Prime Day was the “biggest day ever for Amazon devices globally,” with the company selling three times as many
Just as importantly, the successful sale of so many Amazon devices will help expand Amazon’s ecosystem, allowing it to sell more apps and eBooks.
Prime Day could continue to help bolster Amazon’s earnings for many quarters to come. In fact, Anmuth goes so far as to say that “the true benefits of Prime Day are much farther reaching” than one day of impressive sales.
Instead, the main benefit comes from the people who sign up for Prime subscriptions. For consumers to take advantage of Prime Day deals, they need to be a member of Amazon Prime, which generally comes with a $99 yearly fee. Research
It’s true that someone could just sign up for a 30-day free Amazon Prime trial to take advantage of Prime Day, but a
This $99 yearly fee, combined with the increased number of purchases, produces a great deal of revenue for Amazon. In fact,
Deutsche Bank is also expecting the second half of the year to be very strong for Amazon. However, Q2 earnings are likely to only meet expectations, and with Amazon shares near 52-week highs, the stock isn’t likely to soar for a while. If there is weakness in the stock, though, Deutsche does recommend buying.
Amazon’s sales are likely to be slightly affected by the pound weakening, but not significantly enough to change Deutsche’s $900 price target. For the bank, the focus remains on Amazon’s core businesses, such as Prime and Amazon Web Services, with the former boosting earnings for many quarters to come.
Rayhanul Ibrahim is a writer for Yahoo Finance.