Amazon reported results from its June 21-22 Prime Day event, and the results drew praise from Wells Fargo analyst Ike Boruchow.
At last check Amazon shares were little changed at $3,504. The stock has climbed 9% over the past six months, trailing the S&P 500’s 15% gain, as investors were concerned about the Seattle tech and online-retail giant's valuation.
Wells Fargo rates Amazon overweight with a $4,500 price target.
As for Boruchow, “despite the retail brick-and-mortar recovery, e-commerce and Amazon gross-merchandise-volume growth rates both remain robust (39% and 43%, respectively),” he said.
At the same time, “AMZN still represented about 40% of total addressable market growth over the latest 12 months (above the approximately 25% pre-COVID run-rate).”
Amazon is the No. 1 seller of apparel in the U.S., Boruchow said.
On the Prime Day front, “it was the biggest two-day period ever for Amazon’s third party sellers, nearly all of which are small and medium-sized businesses,” the company said.
“Prime members in 20 countries shopped more this Prime Day than any previous Prime Day. … Members purchased more than 250 million items worldwide.”
Customers spent over $1.9 billion on more than 70 million small business products in the two-week lead-up to Prime Day. That was double the sales from the October 2020 promotion ahead of Prime Day.
In other Amazon news, its proposed $8.45 billion deal to buy TV/movie studio MGM will be reviewed by the Federal Trade Commission, The Wall Street Journal reported Tuesday.
The FTC already has begun a far-flung antitrust query into Amazon’s business practices, knowledgeable sources told The Journal.