Strong Holiday Sales Will Likely Drive Amazon’s Growth in December
Amazon experienced strong sales on Thanksgiving weekend
The holiday season is the best period for retailers. According to a report from IBM (IBM), the online sales on Cyber Monday grew by about 18% this year—compared to last year’s Cyber Monday. The Thanksgiving weekend sales were even better. Over the weekend, the online sales grew by 25.5%. The report also mentioned that Apple (AAPL) Watch, Sony (SNE) TV, Samsung TV were popular among consumers.
Amazon (AMZN) is the largest e-commerce player in the world. It could be the biggest beneficiary from this growth. According to Amazon’s own guidance for fiscal 4Q15, its revenue should grow by 14%–25% YoY (year-over-year). However, according to Investopedia, Amazon experienced a 30% YoY growth rate for Thanksgiving Day, Black Friday, and Cyber Monday.
Amazon could beat its own revenue guidance
This shows that Amazon could beat its own guidance for the December quarter. It will announce its earnings next month. Amazon also expects an impact of 340 basis points on its revenue from the strong US dollar (UUP) in this quarter. The currency headwinds impacted the overall large-cap technology sector. The above chart shows how Amazon managed to maintain a healthy revenue growth rate in the last few quarters despite these headwinds.