Amazon.com has surprised the market with its strong forecast for third-quarter revenue, surpassing expectations. The company attributes this positive projection to the success of its largest Prime Day sale event in July, which attracted price-conscious consumers to its e-commerce platform. As a result, Amazon’s shares rose by 6% in after-hours trading.
During the Prime Day event, discounts on various products and service deals, such as hotel bookings, led to a 6.1% increase in U.S. online sales, reaching a record-breaking $12.7 billion. This surge in sales can be mainly attributed to inflation concerns, as Americans sought more affordable options.
Additionally, the event proved to be advantageous for Amazon’s nearly 200 million Prime members, who saved an impressive $2.5 billion on approximately 375 million items sold during the two-day sale. This success is expected to contribute to the growth of advertising and merchant services revenue as more third-party merchants join the platform.
The company has projected net sales for the current quarter to be within the range of $138 billion to $143 billion, exceeding the expectations of analysts whose estimates averaged around $138.25 billion.
In the second quarter, Amazon’s revenue increased by 11% to $134.4 billion, surpassing estimates of $131.50 billion. This further highlights the continuous growth and success of the company in both the e-commerce and cloud industries.
Overall, the impressive performance of Amazon’s Prime Day sale event has not only boosted revenue but also attracted new customers and increased customer loyalty among existing Prime members. With the forecast for stronger Q3 revenue, Amazon continues to solidify its dominant position in the global e-commerce market.
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