- Amazon Prime Day is projected to generate over $12 billion globally.
- Amazon's stock has seen considerable fluctuations, with a significant rise followed by a slight downturn in July, but there is potential for recovery based on historical trends.
Amazon.com Inc' (NASDAQ:AMZN) Prime Day, which launched in 2015, has become a major mid-year sales event that resonates with consumers, especially when prices are high. This event, exclusive to Amazon Prime members, uses perks like free shipping to attract shoppers.
The membership requirement adds an element of exclusivity and encourages more consumers to sign up for Amazon Prime, not just for the event but for long-term benefits.
Meanwhile, major retailers like Walmart, Target, and Macy's, as well as online platforms like TikTok Shop and Temu, have noticed Prime Day's appeal. These competitors organize their own sales events around the same time to attract bargain-hunting consumers, creating a ripple effect across the retail sector.
Despite the boosted sales, potentially exceeding $12 billion globally, Prime Day has its critics. Some argue that the event can lead to misleading promotions and encourage impulse buying.
They contend that the deals may not always be as good as they seem, causing buyers to spend on items they don't necessarily need.
Amazon's stock has experienced significant fluctuations. After a 28% rise earlier this year, prices increased by 4% in early July. However, a subsequent downturn reduced July's growth to just 0.73%. This decline occurred after the stock reached the $200 mark, a key psychological resistance level.
Despite these changes, the stock might find support around $188, which is the high of July 2021. A rebound from this support level could push the stock past $200, potentially reaching new record highs if buying momentum continues, following Amazon's historical bullish trends but patience is required to get through this period.
After the closing bell on Friday, June 12, the stock closed at $194.49, trading down by 0.54%.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.