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Amazon Looks for Prime Day Boost Before Holiday Season

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While Amazon’s Prime Day usually occurs in mid-July, the retail giant moved the event in 2020 due to the COVID-19 pandemic. The company will offer deep discounts on Oct. 13–14. This year marks Amazon's sixth annual Prime Day. 

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What is Amazon's Prime Day?

Essentially, Amazon created Prime Day as a strategy to boost revenue during the traditionally slower summer months. Thousands of items are offered at major discounts and Prime members receive free and fast shipping. The event got delayed in 2020 due to the COVID-19 pandemic. 

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Yousseff Squali, an analyst for Truist, said that the timing of this year’s Prime Day is a smart move on Amazon’s part, as reported by Yahoo Finance. By offering steep discounts over a month before the holiday shopping season traditionally kicks off, Amazon should see a big revenue boost now and in late November through December.

Squali also noted that the October promotion will help spread out the retail demand over a longer period of time. Spreading out the demand should reduce pressure on Amazon’s fulfillment centers to prepare and ship customer orders. 

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According to eMarketer, Amazon's Prime Day sales in 2019 went up 67 percent YoY to $6.93 billion. The forecast for 2020 looks promising at $9.91 billion in sales for a YoY increase of 43 percent. The U.S. sales are projected to be $6.17 billion. 

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Online shopping continues to be a key sales driver. With social distancing measures in place amid the COVID-19 pandemic, the company may see revenue from “a new demographic of shoppers who have turned to e-commerce during COVID-19,” according to a MarketWatch report. 

Amazon Prime Day deals in 2020

Many great deals are available during Amazon's Prime Day this year. The following list includes a few of the hot tech items marked down significantly for Prime Day.

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  • Apple AirPods Pro for $199 — down from $249
  • Echo Show 5 for $45 — down nearly 50% from $89.99
  • Echo Dot Smart Speaker with Alexa 3rd gen. for $40 — down from $50
  • iRobot Roomba 675 Robot Vacuum for $249.99 — down from $279.99
  • Kindle Paperwhite Essentials Bundle for $169.97 — down from $189.97
  • Beats Solo Pro Wireless Noise Cancelling Headphones for $199.95 — down from $299.95
  • TCL 40-inch 1080p Smart LED Roku for $198 — down from $299.99
  • Acer Chromebook 514 for $299.99 — down from $349.99
  • Surface Pro X Laptop starting at $999.99 — down from $1,299.
  • Galaxy Note 20 Ultra, starting at $1,049.99 — down from $1,299.99

What is Amazon's stock price today?

On Oct. 12, Amazon closed at $3,442.93. During pre-market trading on Tuesday, Oct. 13, Amazon reached $3,483.00 per share as of 7:58 a.m. ET. 

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Is Amazon a good stock to buy?

Amazon hasn't suffered like smaller businesses amid the COVID-19 pandemic. Online shopping has boomed in 2020. J.P. Morgan gave Amazon stock a target price of $4,050.

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TipRanks Analytics said that Amazon is a strong buy. All of the 37 analysts who posted a review over the past three months rated Amazon as a buy. The average target price is $3,764. 

When will Amazon report its earnings?

Amazon will likely release its earnings on Oct. 22.

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