Market Overview

1 Million New Amazon App Users Bodes Well For Back-To-School, Holiday Sales

1 Million New Amazon App Users Bodes Well For Back-To-School, Holiday Sales

Global orders grew 60 percent year-on-year during, Inc. (NASDAQ: AMZN)'s Prime Day 2016, making it the company’s largest ever event.

JMP’s Ronald V. Josey reiterated a Market Outperform rating on the company, with a price target of $775.

Largest Ever Event

Device sales grew three-fold year-on-year in the U.S. during the second Prime Day event, which Josey believes is a “long-term strategic positive as Amazon builds out its broader ecosystem beginning with Prime memberships, extending to video, music, and books, and increasingly the connected home.”

Globally, the Fire TV stick was the bestselling device, while Echo orders increased 2.5x, as compared to the previous Prime Day.

Related Link: Amazon Says Tuesday's Prime Day Its Biggest Day Ever: Here Are The Highlights

More than one million customers used the Amazon App for the first time on Prime Day, with App orders growing 2x year-on-year and users increasingly relying on the company’s mobile products and services.

Bodes Well For Amazon

Josey believes this “this bodes well for the upcoming back-to-school and holiday shopping seasons.”

The analyst believes this Prime Day was materially more successful than the previous one. Prime Day 2015 had added 200 bps to Amazon’s 3Q15 revenue growth, with orders growing 266 percent year on year.

This year, there were a larger number of deals, at over 100,000, as well as Countdown Deals that began seven days prior to Prime Day.

Customer orders grew 60 percent year on year globally and 50 percent year-on-year in the U.S. The use of the app led to Amazon’s App ranking on the iOS App Store rising to No. 4 from No. 22 on July 5.

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Latest Ratings for AMZN

Jul 2020Canaccord GenuityMaintainsBuy
Jul 2020Credit SuisseMaintainsOutperform
Jul 2020Morgan StanleyMaintainsOverweight

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