The Cause of Monday’s Amazon Stock Rally

Amazon Stock (NASDAQ:AMZN)

Amazon stock was up as much as 3.1% on Monday morning. The Amazon stock was up 1.5% as of 1:29 PM ET, even though all major stock indices were down simultaneously.

The news that the online retail giant will host a second Prime Day sale this year sparked a price increase.

What’s the Reason?

Amazon Prime Early Access Sale was announced in an early morning press release, a two-day shopping event for Prime members only. The sale will take place on October 11 and 12. With this new 48-hour event, Prime members will get “special early access to seasonal discounts,” the business claimed. Products from well-known manufacturers like Peloton and New Balance will be on sale, along with many more now at their lowest prices of the year.

To “provide members an opportunity to kick off the Christmas shopping season early with hundreds of thousands of offers,” the sale will be accessible in 15 countries, including the United States. Amazon will provide a Top 100 list with “the season’s most popular and giftable products” as part of the promotion.

In addition, starting today, Amazon (NASDAQ:AMZN) members will get “early access” to Christmas shopping recommendations and exclusive offers. A third-generation Echo Dot may be purchased for $0.99. Or You can get a free four-month trial of Amazon Music Unlimited or free one-year membership to Just Eat’s Grubhub+ as part of the launch offers.

What’s Next?

Amazon Prime Day has been a consumer favorite since it was created in 2015 to mark the company’s 20th anniversary and spawned several imitators. Prime Day (now a two-day event) is expected to have produced $12 billion in sales in 2022, even though Amazon (NASDAQ:AMZN) does not disclose specific financial statistics regarding the event. Consider it in light of Amazon’s $470 billion sales from the previous year, and you’ll see that it’s a mere drop in the bucket. As a result, Amazon stock skyrocketed.

Amazon’s decision to put more emphasis on its annual sale comes as no surprise, considering the event’s high profile and the satisfaction it brings the Amazon stock investors.

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About the author: I'm a financial journalist with more than 1.5 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.