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Amazon Prime Day 2019: What The Pros Are Saying

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Amazon Prime Day 2019: What The Pros Are Saying

Amazon.com, Inc. (NASDAQ: AMZN)'s 48-hour Prime Day sales event is a "big deal" for the entire retail sector, according to KeyBanc Capital Markets' Edward Yruma.

Yruma: Amazon Faces Competition

Amazon deserves credit for starting a new industrywide sales event in July, but other retailers have since "jumped on the bandwagon," Yruma told CNBC in a Monday interview.

Investors are likely asking two key questions, the analyst said:

  • Is Amazon still the winner of what is essentially its own holiday?
  • Is Amazon driving new sales to its platform? 

"We think [Amazon] will be" the winner in the otherwise slower summer sales period, Yruma said.

Prime Day is backed by "great deals" across its entire infrastructure, including music and groceries, he said, adding that the e-commerce company will generate new revenue from the spontaneous nature of its sales.

It's important for Amazon to emphasize to customers how "important" it is to not only buy a Prime membership but to keep it, the analyst said.

Bankrate: Mindful Of Unnecessary Purchases

Consumers should consider making a Prime Day purchase only after checking prices with both online and offline rivals, said Bankrate.com senior economic analyst Mark Hamrick.

Consumers should then ask themselves if they are buying an item that they can afford and would have otherwise purchased if there was no sales event, he said. 

Consumers are often "all too willing" to make unnecessary purchasing decisions during "widely publicized" sales events, Hamrick said.

While "might be great" for Amazon investors, it's not wonderful for consumers looking to boost their savings.

"While some might enjoy the rush of clicking the 'buy' button, longer-lasting regrets can follow upon realizing the item wasn't necessary and personal financial goals are one casualty."

Amazon shares were down 0.3% at $2,004.99 at the time of publication Monday. 

Related Links:

A Perfect Play For Prime Day With This ETF

How Good Does Amazon's Prime Day Need To Be?

Photo courtesy of Amazon.

Latest Ratings for AMZN

DateFirmActionFromTo
Sep 2019MaintainsOutperform
Aug 2019AssumesBuy
Jul 2019MaintainsOutperform

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Posted-In: Bankrate CNBC e-commerceAnalyst Color News Events Analyst Ratings Media Best of Benzinga

 

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