Amazon: Additional Prime Day Could Be A Warning Signal

Oct. 11, 2022 11:43 PM ETAmazon.com, Inc. (AMZN)21 Comments
Cavenagh Research profile picture
Cavenagh Research
3.64K Followers

Summary

  • Amazon's e-commerce sales have stealthy declined for the past 2 quarters, as Q2 results indicated a 4.3% year-over-year decrease.
  • Arguably, as an effort to fight slowing e-commerce sales, Amazon has announced an unprecedented second Prime Shopping Day.
  • The Prime Day event could add an extra $4.1bn in sales to Amazon’s topline.
  • I don't like the implications of a sales promotion. I think it is a desperate move to meet market revenue expectations.
Amazon prime box delivered to a front door of residential building

Daria Nipot

Thesis

On October 6th, Amazon (NASDAQ:AMZN) announced an unprecedented second Prime Shopping Day, which I view as a clear warning signal that the e-commerce giant is fighting against disappointing analyst's and investor's revenue expectations.

Amazon shares are down about 33% YTD, versus

This article was written by

Cavenagh Research profile picture
3.64K Followers
5y experience as an investment analyst for a major BB-Bank. Currently working towards the CFA charter. Passion for risk-assets (Growth, Contrarian, Emerging Market) ex-colleague and close friend of Investor Express

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Not financial advise.

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