Cyber Monday is no longer just the Monday after Thanksgiving -- it's encroaching on Black Friday's territory. And as mobile sales continue to explode, Cyber Monday is likely to surpass expectations.
Cantor Ftizgerald analyst Youssef Squali noted that mobile drove 55% of all visits to retail sales and accounted for approximately 37% of all sales this past Thanksgiving and Black Friday, representing the power of smartphones and tablets. "We believe that the shift to mobile is likely driven by a combination of factors, including in-store comparison shopping, improving mobile experiences and larger mobile screen sizes," Squali wrote in a note to clients.
First billion dollar mobile day yesterday https://t.co/ANooRWzPz7— Tamara Gaffney (@tamarag) November 26, 2016
Among those poised to benefit from mobile's growth is Amazon (AMZN) , which has exclusive deals not only for users of its app, but also those of its Amazon Echo assistant. "A key beneficiary of mobile appears to be Amazon, which disclosed that smartphone sales on Black Friday exceeded Thanksgiving and beat last year's Cyber Monday and Black Friday," Squali wrote to clients.
In addition to Amazon, companies such as Target (TGT) , Walmart (WMT) and others are hosting mobile-exclusive deals, as consumers shop from their mobile devices, be it on Cyber Monday or the rest of the holiday shopping season.
"Brick-and-mortar retail is broken and the shift is accelerating to online retail," said Christian Magoon, founder and CEO of Amplify Investments which has $115 million in assets under management. "Traditional retail stocks have been getting pounded this year, but the online slice of the market is projected to grow by double digits -- or more than three times the growth rate expected for all holiday retail sales -- and Cyber Monday will be a catalyst to this success."
Consumer confidence appears to be high going into the start of the holiday shopping season, which could bode well for another record Cyber Monday.
Adobe noted that $5.27 billion was spent online last Thursday and Friday, with $3.34 billion on Black Friday and $1.93 billion on Thanksgiving, up nearly 18%, another good sign for Cyber Monday and mobile. The National Retail Federation (NRF) estimated 154 million shopped over the weekend, up 3 million from 2015 and well above the 137.4 million that was expected.
Average spending per consumer fell year-over-year to $289.19 from $299.60, with Magoon noting that consumers may have felt a "bit less urgency" in terms of making purchases this year as events like Black Friday and Cyber Monday get extended.
Still, consumers appear to have put worries like the presidential election and the economy behind them, at least for now.
Tech products sold particularly well over the long weekend, with the Consumer Tech Association (CTA) noting TVs, tablets, smartphones and video game consoles were among the most popular tech purchases. Drexel Hamilton analyst Brian White noted the top five selling electronics products on Black Friday "included Apple (AAPL) iPads, Samsung 4K TVs, Apple MacBook Air, LG TVs and Microsoft (MSFT) Xbox."
The CTA estimates that 49.4 million U.S. adults (20%) will shop on Cyber Monday, which would be a new record. Cantor Fitzgerald's Squali estimated that $3.36 billion would be spent on Monday, "likely retaining its spot as the highest grossing day of the season."
With consumers seemingly putting their worries away, at least for a few days, Cyber Monday and mobile are poised to help drive holiday shopping higher, Oppenheimer analyst Jason Helfstein wrote. "With the 3Q slowdown in both AMZN US EGM [electronics and general merchandise], overall US online sales and consumer sentiment (pre-election), we think the setup is positive ahead of Cyber Monday."