{"id":34278,"date":"2023-07-11T15:23:50","date_gmt":"2023-07-11T19:23:50","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/why-amazon-prime-day-wont-move-its-stock-price\/"},"modified":"2023-07-11T15:23:52","modified_gmt":"2023-07-11T19:23:52","slug":"why-amazon-prime-day-wont-move-its-stock-price","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=34278","title":{"rendered":"Why Amazon Prime Day Won\u2019t Move Its Stock Price"},"content":{"rendered":"
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Amazon CEO Andy Jassy \u2014 who took over from Jeff Bezos on July 5, 2021 \u2014 has earned a gentleman\u2019s C for his performance so far.<\/p>\n

Amazon\u2019s revenue growth rate has slowed and its stock price has fallen over the last two years. Nevertheless, the online shopping giant\u2019s stock has beaten the S&P 500 so far in 2023 \u2014 up 51% \u2014 and cost cuts have boosted its profits.<\/p>\n

Can Amazon\u2019s Prime Day 2023 \u2014 a buzzy buying binge aimed at getting people to buy online by giving discounts to Amazon Prime members \u2014 revive the growth of a groundbreaking company whose boffo founder retired two years ago?<\/p>\n

In a word: No. Amazon\u2019s Prime Day \u2014 a fast-fading revenue sugar high \u2014 has historically sent Amazon\u2019s stock ticking down, according to Investopedia<\/em>. I have contacted Amazon for comment and will update this post if I receive a response.<\/p>\n

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Until Jassy can spearhead a significant source of new growth for Amazon, investors should look elsewhere.<\/p>\n

When Is Amazon Prime Day 2023?<\/h2>\n

Amazon Prime Day \u2014 a holiday the company invented in 2015 to \u201cincrease sales during the slower summer months and to boost Prime memberships\u201d \u2014 is happening July 11 and is forecast to generate about $12.9 billion in revenue this year, according to the Wall Street Journal<\/em>.<\/p>\n

That figure represents a growth slowdown. Insider Intelligence<\/em> estimates 2023\u2019s Amazon Prime Day to be 11% more than last year \u2014 way down from the roughly 60% growth it spurred in its early years \u2014 but a slight improvement over Amazon Prime Day\u2019s sub-10% growth in 2020 and 2021.<\/p>\n

Amazon has cut back on its investment from previous years and focuses more on discounts for its own products. Nevertheless, worldwide purchases have grown at a 36.5% average annual rate between 2015 and 2022 \u2014 when people bought 300 million items, according to Fast Company<\/em>.<\/p>\n

Amazon Prime Day is forecast to boost Amazon Prime subscriptions. JPMorgan analyst Doug Anmuth estimates Amazon Prime memberships will approach 300 million members by the end of the year \u2014 about 100 more than the company had in 2021.<\/p>\n

Moreover, analysts will be looking for a revival in demand for computer and consumer-electronics which have fallen since peaking during the Covid-19 pandemic highs, noted the Journal<\/em>.<\/p>\n

What\u2019s Special About Amazon Prime Day 2023?<\/h2>\n

This year, Amazon plans to minimize shopper confusion by personalizing the buying experience through machine learning and other tools. Carmen Nestares Pleguezuelo, head of Amazon\u2019s U.S. Prime memberships, said, \u201cThe breadth of this event has gotten tremendously big. Your Prime Day and my Prime Day are different. We\u2019re going to tailor Prime Day exclusively for [the customer],\u201d Fast Company<\/em> reported.<\/p>\n

Here are highlights of how Amazon will personalize the shopping experience:<\/p>\n