JPMorgan Forecasts $3.8B in Incremental Revenue for Amazon Prime Day

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It’s no secret that Amazon.com, Inc. ($NASDAQ:AMZN) is one of the hottest companies in the world right now. The e-commerce and cloud computing titan continues to dominate its respective industries, and shows no signs of slowing down. One of the key drivers of Amazon’s growth is its annual Prime Day event. This year’s event is scheduled for July 12-13, and analysts are expecting it to be even bigger and better than last year’s. Total Prime Day revenue is expected to come in at $5.6 billion, up 5% from last year. Anmuth believes that the shift of Prime Day back to its usual mid-July timing will restore the focus on summer and back-to-school shopping. However, he also notes that the overall macroeconomic backdrop and impact on consumer demand cannot be ignored. On the logistics side of the business, JPMorgan thinks things are looking up for Amazon. The company has nearly doubled its workforce to 1.6 million employees over the past two years, and has been making significant investments in its fulfillment and distribution network. All things considered, Anmuth believes that Amazon is well positioned to continue delivering strong results in the quarters ahead.

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Summary

The firm also predicts that Amazon’s stock price will take a hit following the event, as investors react to the company’s increased spending on marketing and fulfillment. Despite the increased spending, JPMorgan remains bullish on Amazon, forecasting that the company will continue to grow at an impressive rate.