KEY POINTS

  • Amazon is planning to premier its second Prime Day sale of the year.
  • Members will have access to deals before everyone else, just like the Prime Day in July.

What’s going on with Amazon stock

Although the stock market tumbled Monday, Amazon’s stock surged 1.2%. At its peak earlier today, the company had gained 3.1%.

The news that Amazon (NASDAQ:AMZN) will hold a second Prime Day sale this year, which will begin in only weeks, was the driving force behind its rise.

Why we care

The e-commerce giant announced Amazon’s Prime Early Access Sale in a press release early Monday morning. This shopping event exclusively for Prime members will take place on October 11-12. “The new 48-hour event gives Prime members exclusive early access to holiday deals,” the company added in a statement. The sale will include merchandise from well-known companies like Peloton (NASDAQ:PTON) and New Balance, as well as some of the year’s lowest prices on various other items.

The sale will commence in 15 countries – including the United States – “giving members a chance to kick off the holiday shopping season early with hundreds of thousands of deals.” As part of the event, Amazon is releasing a Top 100 list of “the season’s most popular and giftable items.”

In addition, Amazon granted early access to members yesterday so they could examine the Christmas gift guides and early discounts. The early promotion offers include a free trial of Amazon Music Unlimited for four months, a free annual subscription to Grubhub+, or a third-generation Echo Dot for $0.99.

What now

Amazon Prime Day began in 2015 as a celebration of the company’s 20th birthday. It has grown into a customer favorite event that has inspired numerous copycats and imitators.

While the firm does not discuss financial results from the event, experts predict that Prime Day (now a two-day event) generated record sales of $12 billion in 2022. However, it’s worth noting that while this is only a drop in the bucket compared to Amazon’s $470 billion earnings last year, it’s significant nonetheless.

Considering its growing significance, Amazon’s continued emphasis on the event isn’t particularly surprising. Moreover, it’s not too shocking that Amazon would double down on the event, which is good news for shareholders.

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