Why Amazon stock popped on Monday

The e-commerce giant is doubling down on its biggest sale of the year.

| More on:
hands at keyboard with ecommerce icons

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Amazon.com, Inc. (NASDAQ: AMZN) climbed higher Monday morning, adding as much as 3.1%. As of market close, the stock was still up 1.2% -- even as each of the major stock indexes slumped.

The catalyst that sent the e-commerce giant higher was reporting the company will hold a second Prime Day sale this year, which will kick off in just weeks.

So what

In a press release that dropped early this morning, the company introduced Amazon's Prime Early Access Sale, a shopping event exclusively for Prime members, which will be held on Oct. 11-12. "The new 48-hour event gives Prime members exclusive early access to holiday deals," the company said in a statement. The sale will have items from popular brands, including Peloton Interactive, Inc. (NASDAQ: PTON) and New Balance, while also offering the lowest prices of the year on a variety of other products.

The sale will be available in 15 countries -- including the U.S. -- "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 providing a Top 100 list, which will include "the season's most popular and giftable items."

Furthermore, members will be provided with "early access" to check out the holiday gift guides and early deals beginning today. Initial promotions include a four-month free trial of Amazon Music Unlimited, a free one-year subscription to Just Eat Takeway.com's Grubhub+, or a third-generation Echo Dot for $0.99.

Now what

Since it was introduced in 2015 to celebrate the company's 20th anniversary, Amazon Prime Day has become a customer-favorite event, spawning a multitude of copycats and imitators. While the company keeps details about the financial results of the event quiet, estimates suggest that Prime Day (which is now a two-day event) generated record sales of $12 billion in 2022. It's important to view that in context, however, as it's just a drop in the bucket compared to the $470 billion in revenue Amazon generated last year.

Still, given the growing importance of its annual sale, it's not too surprising that Amazon would double down on the event -- much to the delight of its shareholders.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Danny Vena has positions in Amazon and Peloton Interactive. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Peloton Interactive. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on International Stock News

electric vehicle such as Tesla being charged at charging station
International Stock News

Why did the Tesla share price just tumble 7%?

Nasdaq investors just sent the Tesla share price sharply lower.

Read more »

A woman is excited as she reads the latest rumour on her phone.
Broker Notes

Goldman Sachs says this US stock is replacing Tesla in the Magnificent Seven

And no, it's not a tech company. It's in the healthcare sector.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Should I buy Nvidia stock as an Australian investor?

Many Aussies are thinking of jumping on the bandwagon, but they need to think about these issues first.

Read more »

Digital rocket on a laptop.
Broker Notes

Is the Nvidia share price on course to reach US$1,400?

You betcha, says one analyst.

Read more »

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.
International Stock News

Could Nvidia become the most valuable stock on earth?

Can anything stop the Nvidia stock price?

Read more »

A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.
International Stock News

What can ASX investors learn from Warren Buffett's latest buys and sells?

We've just found out what Buffett's been buying and selling recently.

Read more »

electric vehicle such as Tesla being charged at charging station
International Stock News

Why Tesla stock tanked in January

Will the electric vehicle leader see earnings decline once again in 2024?

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
International Stock News

Will Nvidia stock be worth more than Microsoft by 2030?

The graphics giant has been growing at a much faster pace than Microsoft, but can it sustain that momentum?

Read more »