Amazon.com, Inc’s (AMZN - Free Report) generated strong device sales during the holiday weekend, defined as Thanksgiving through Cyber Monday.
Per the company’s statement, Echo Dot was the top-selling product on Amazon.com over the holiday weekend. Not only this, it was also the best-selling product from any manufacturer in any category on Amazon. Additionally, Fire TV Stick with Alexa Voice Remote, all-new Amazon Echo, and Fire 7 tablet also achieved record sales, making the holiday weekend sales a great event for the company.
Dave Limp, senior vice president of Amazon's devices and services division, said, “Customers purchased millions of Amazon's Alexa-enabled devices this weekend, and Alexa devices were the top sellers across all of Amazon.”
The company further added that Echo Dot was also the bestseller at Whole Foods' grocery locations across the country over the weekend.
In fact, Echo Dot has been gaining a lot of popularity recently. Echo Dot was also Amazon’s bestselling product across manufacturers and categories worldwide on Prime Day’17. Fire Kids Edition also continued to be the number one kids tablet in the United States, across all retailers.
However, Amazon has underperformed the industry it belongs to on a year-to-date basis. The company’s shares have gained only 59.2% compared with the industry’s growth of 65.1%.
Amazon is a far different company from it was two years ago. That said, the potential for growth still exists. The holiday season is a time for Amazon’s loyal customers to celebrate. And for investors, it’s the perfect time to reflect on one of the world’s most remarkable companies.
The Echo achievement underscores the fact that Amazon is heading toward the right direction with its Alexa-powered devices, and it expects to repeat the success in this holiday season. Alexa powered Echo devices are going great guns and help the company in selling products and services. The idea is to make Alexa the central point connecting IoT devices used in any household and get unrivaled customer data. This in turn will help the company to have a long-term competitive edge over Alphabet (GOOGL - Free Report) subsidiary Google's smart assistant, Apple’s (AAPL - Free Report) Siri and Microsoft's (MSFT - Free Report) Cortana.
It does not end here. According to Adobe Analytics, online sales during Thanksgiving and Black Friday hit all-time highs. U.S. retailers garnered $7.9 billion from Thanksgiving and Black Friday combined sales, increasing 17.9% year over year.
These figures underscore how efficiently Amazon is using the platform to drive sales.The company’s revenues get a huge boost from the holiday season each year and this year is expected to be no different.
Amazon currently has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank stocks here.
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