Amazon.com, Inc. (AMZN - Free Report) is offering attractive deals across 30 product categories for the five-day shopping period (“Turkey 5”) that extends from Thanksgiving Day to Cyber Monday. The deals will be available on more than one hundred million items across categories like Amazon devices, electronics, toys, grocery, beauty, fashion, sports, kitchen and many more.
We observe that Amazon shares have rallied 51.6% year to date, courtesy of its solid loyalty program in Prime, Fulfillment By Amazon, Amazon Web Services (AWS), a Blockbuster Prime Day 2017 and initiatives around Internet of Things (IoT).
Notably, Amazon is putting up deals on a rolling basis. This means that the deals will start at various points of time and shoppers have to keep track of them. This is probably Amazon’s way of making shoppers spend more time on its website and app.
Also, to increase the popularity of its Alexa powered devices, Amazon is giving voice shoppers early access to deals starting 5 pm PT on Nov 22. Prime members will get a 30-minute early access.
Strengthening Device Strategy
All-new Echo and Echo dot will be offered in early Black Friday sales (at $20 discount) staring Nov 17. This advance offering reflects the confidence Amazon has gained from its devices sale on Prime Day’17. Echo Dot was the bestseller this year. It was also Amazon’s bestselling product across manufacturers and categories worldwide. In addition, Echo, Kindle and Fire tablets achieved record sales, making Prime Day ’17 the biggest ever sales event for Amazon devices in the United States and the rest of the world.
Amazon.com, Inc. Net Income (TTM)
The achievement underscores the fact that Amazon is heading in the right direction with its Alexa powered devices and it expects to repeat the success in the holiday season. Alexa powered Echo devices are going great guns and help the company to sell products and services. The company is racing to build an ecosystem around Alexa to make sure that it stays well way ahead of Alphabet (GOOGL - Free Report) subsidiary Google's smart assistant, Apple’s (AAPL - Free Report) Siri and Microsoft's (MSFT - Free Report) Cortana.
Small Businesses Gaining Importance
Amazon will offer great deals on products from small businesses and entrepreneurs, a category of sellers that is becoming increasingly significant to e-commerce companies.
This year, Amazon has seen increased participation of small businesses and entrepreneurs on Prime Day and expects the momentum to continue in the holiday season as well. The company is expected to benefit from increased traffic, new product launches and enhanced sales.
Amazon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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