JPMorgan Forecasts Strong Online Holiday Sales Growth, Amazon as Top Pick

The market is heading into a potentially green Thanksgiving week!! 🦃🦃🦃

JPMorgan analyst Doug Anmuth projects a solid 7.5% year-over-year increase in online holiday season sales leading into Thanksgiving and the Cyber 5 weekend. While this is slightly below last year’s 9.8% growth, it reflects continued strong gains in e-commerce. Third-party estimates for e-commerce growth range between 7%-10%, while overall holiday spending, including online and offline, is expected to grow 2.0%-3.5% year-over-year, slightly trailing last year’s 3.9%.

JPMorgan highlights Amazon as its top pick in the internet sector, citing its long-term potential for U.S. e-commerce penetration to nearly double from the current 22% to over 40%.

With a shorter holiday season, major retailers like Amazon, Walmart (WMT), and Target (TGT) have launched early promotional campaigns to drive demand and reduce pressure on retail networks during peak shopping periods.