Amazon.Com Inc (NASDAQ:AMZN) is gearing up for Prime Day 2024, which will take place on July 16-17. The company aims to achieve significant sales growth.
This event came as Amazon's stock price reached record highs, pushing its market capitalization past the $2 trillion mark.
Revived sales growth and robust bottom-line improvements have fueled Amazon's recent stock performance, the Wall Street Journal reports.
Also Read: Amazon Expands AI Shopping Assistant Rufus to All US Customers As Prime Day Approaches
The hype around artificial intelligence has played a crucial role in boosting Amazon's stock akin to other Big Tech giants led by Nvidia Corp (NASDAQ:NVDA).
Investors bet Amazon will maintain its current strategy without reverting to heavy investment phases.
Over the past four quarters, Amazon's operating income surged by triple-digit percentages and will likely exceed $62 billion this year. This would bring the annual operating margin to nearly 10%, significantly higher than the 5% average over the past five years, WSJ reports.
According to Emarketer, this year's Prime Day has the potential to generate around $13.3 billion in global sales, up 6% from last year.
Amazon's advertising business, currently valued at $49 billion, is set to receive a further boost from introducing ads to Prime Video. Jefferies estimates this could generate about $2.9 billion in new ad revenue for Amazon this year.
Price Action: AMZN was down 0.16% to $194.17 premarket at the last check on Monday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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