AMZN Stock price is down in trading at $109.40 as of 11:48 AM EDT.
According to estimates from Bank of America, Amazon (NASDAQ:AMZN) generated $8 billion in gross merchandise value during the course of the week’s two-day Prime Early Access event. The $10.7 billion in GMV for the July event is lower than that total.
BofA said that Prime Day may represent roughly 4% of GMV for the quarter vs. 7% in July and add 2.3 percentage points to year-over-year growth based on the firm’s expectation of $185.7 billion in total GMV for Amazon in Q4. A 30% take rate for third-party sellers would indicate that the e-commerce giant’s second Prime Day event generated $5.7 billion in sales. Not all of the transactions were additive, though, since some Prime Early Access purchases were probably holiday sales that were pushed forward.
Analyst Justin Post commented on the event, saying, “Ultimately, we view this Early Access event as incrementally useful, as both a branding event for Prime and maybe softening seasonal demand aiding with logistics.”In premarket trading on Friday, AMZN Stock increased 0.12% to $112.52.
Is AMZN Stock Poised for Growth?
Over the previous five years, the price of Amazon stock has increased by more than 125%. During that time, annual revenue and net income increased as well, reaching levels far into the billions of dollars. This occurred as the corporation strengthened its position in two important industries: cloud computing and e-commerce.
Today, Amazon’s net revenues are increasing as a result of its dominance in these sectors. However, escalating expenses and issues with the supply chain have been hurting earnings. Operating income and operating cash flow have decreased as a result.
AMZN Stock price (NASDAQ:AMZN) has also dropped. This year so far, it has lost 32%. AMZN Stock is now trading at less than three times its sales. That’s very nearly the lowest point in around six years. Find out more on AMZN Stock Analysis, Problems With Allocating Its Capital.
Featured Image- Megapixl @ Josefkubes
Author Jowi Kwasu 
