Analysts see Amazon stock rising as Prime Day approaches

Roth MCM turned to a 20-year-old e-commerce expert for insights into Amazon.com Inc. (NASDAQ:AMZN) Growth Trajectory Ahead of Company’s 10th Year Prime Day event July 16 and 17. Result: growth is expected in the second quarter.

What to know: Moth MKM Analyst Rohit Kulkarni detailed several takeaways from a recent conversation with a seasoned e-commerce veteran in a new note to clients on Tuesday.

The analyst maintained a Buy rating and a $210 price target on the stock after the e-commerce expert expressed optimism that Amazon’s Prime Day growth will accelerate this year compared to 2023.

U.S. online sales during Amazon Prime Day last year rose 6.1% year over year to $12.7 billion. Amazon said Prime members purchased more than 375 million items globally during the two-day event in 2023, making it the largest Prime Day event ever.

An e-commerce expert interviewed by Roth MKM expects Prime Day to grow 6% to 9% compared to 2023, and predicts double-digit growth in almost all categories in the second quarter year-over-year. The source also expects these trends to continue into the second half of the year.

Check This Out: Want to Buy a Kindle on Amazon Prime Day 2024? Read This First

One thing that could help boost sales is Amazon’s ad expansion. Amazon began retargeting impressions toward purchases, which was a key factor in the increase in consumer ad spending in the second quarter, an e-commerce expert said.

Need analyst Laura Martin in a new note to clients sent Tuesday, he also highlighted Amazon’s efforts to shift historical advertising metrics from reach and frequency to actual sales.

Amazon pairs Prime Video ads with sales on its main e-commerce platform, but it is also expanding its reach into the physical world through advertising partnerships with Kroger, Uber AND Instacartamong other things. Martin noted that Amazon’s ability to connect advertising on its platforms to actual sales both online and offline worries competitors.

The Needham analyst reiterated a Buy rating on Amazon on Tuesday and kept his price target at $205.

For Amazon Prime Day 2024, members will get access to millions of exclusive deals across 35+ categories, including electronics, kitchen, beauty, and apparel. Anyone can join Prime for $14.99 a month or $139 a year.

AMZN price action: At the time of publication, Amazon shares were up 0.11% to $199.50, according to Benzinga Pro.

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Photo: Courtesy of Amazon.