Amazon’s annual Prime Day shopping event has achieved record-breaking sales, with shoppers estimated to have spent approximately $14.2 billion on the platform, according to projections by Adobe Analytics. This figure represents an 11% increase from the previous year, indicating a significant acceleration in growth compared to the 6% growth observed during the 2023 Prime Day event. While Amazon does not disclose its exact sales figures for Prime Day, the company has confirmed that this year’s event was a record-breaking success.
Notably, the average spending per order on Amazon saw a notable uptick, with Numerator reporting an increase from $54.05 to $57.97, representing a growth of over 7%. Back-to-school spending also witnessed a remarkable surge, rising by 216% according to Adobe. This resurgence in consumer spending during a crucial shopping period is positive news for Amazon and other retailers, indicating a strong recovery in consumer confidence.
CFRA Research estimates that the Prime Day event accounts for approximately 1% to 2% of Amazon’s global sales. In the first quarter of this year, Amazon experienced a 7% increase in online store sales, amounting to $54.7 billion. The company has forecasted an overall revenue growth of 7% to 11% for the second quarter. A successful Prime Day, falling within the third quarter, could potentially drive further growth for Amazon in the latter half of the year, provided it reflects a strengthening consumer environment.
It is worth noting that Amazon’s other business segments, such as Amazon Web Services (AWS), advertising services, and third-party services, are growing at a faster pace. AWS revenue, for instance, increased by 17% in the first quarter to $25 billion, while advertising services revenue and third-party services climbed by 24% and 16% respectively.
Considering Amazon’s forward price-to-earnings (P/E) ratio of around 41 times, the stock appears relatively attractively priced compared to previous years. Furthermore, the recent record-breaking Prime Day sales, coupled with positive indicators in the consumer environment, including strong year-over-year retail sales in June and increased containership port volumes, suggest potential for continued and potentially accelerated growth for Amazon.