Amazon - one revolutionary enterprise that started off as a small online book-selling store is expanding its own borders and is working on making each Amazon Prime Day bigger than the one before. 

The launch of this well-known e-commerce was spontaneous, but a hundred percent worth it making Jeff Bezos the richest man in the entire world. His strategy and methodology in running this business has paid off.

Amazon’s stock has tripled its value over the last four years. If we dig into the company's management, revenue, net income and earnings we can see that it is constantly expanding. 

Experts agree that Amazon is a ride for traders that will come a long way.
They love to motivate customers to shop as well as investors to invest. So, they proudly came up with the idea to establish a 48 hour event called Amazon Prime day. 

What is Amazon Prime Day?

Amazon Prime day was created on July 15th 2015, as one way to honor the existence of its Prime members. This event started as a celebration of Amazon’s 20th birthday and became a tradition since 2015. Above all, it has been broadly successful.

Amazon Prime day is an annual sale of items on Amazon's website. 

In the first year of this event customers bought more items than on Black Friday 2014, the biggest Black Friday ever back at the time. Sales on the day went up by approximately  300% worldwide. Shocking, isn’t it?
This brought Amazon a revenue increase of 60% and a share increase price of 650% in the period from the birthday of Prime day, till today.

Shares also rose up to 225% in the first half of the decade introducing us to the company's first sale day.

This year, Amazon Prime Day will begin on Tuesday, July 12th and last till Wednesday, July 13th. 

But, this won’t be the only Prime Day for 2022! The new “Prime Fall”, or more like a winter prime event, will take place in the fourth quarter of 2022, near to or throughout the month of December. 

Several weeks prior to the main event teaser offers are presented to the audience, clearly to increase the excitement and popularity of the day. 

But the extravaganza is not created only for the customer base that Amazon has, it is an amazing opportunity for traders and investors.

Let us show you how.

Returns on AMZN shares during and after Prime day

The news of the announcement for Prime Day 2022 moved the shares up by 3%.

There is no doubt that Amazon’s early investors gained many benefits from investments placed into the stock in the past decade. And many of them know that around Prime day chances for making a potential profit are high.
So high, that if they buy AMZN shares on the closing price of Prime day, investors are more likely to get better returns, than what is estimated on one average trading day.  

Buying AMZN shares on the start of Prime day and closing them on the end has given an average return of 0.27%. This is a relatively high percentage compared to a regular 24 hour period for AMZN. 

What happens if an investor holds onto AMZN shares for a longer period of time? 

 

Looking at a time frame of a 10-day trading period, if a trader buys AMZN stock on Prime Day and holds it for 10 days on average it returns an approximately 4%, more than any other 10 day trading period for AMZN.

Now let’s look at the bigger picture and imagine that a trader holds AMZN shares for a 20-day trading period.
A 20-day trading period brings fantastic results. With a return of 6.62%, in comparison with the 3.95% for any other given 20-day period. 

What to expect from Amazon Prime day 2022?

Some sales for the Prime day have already started.

Analysts and experienced traders hope that this Prime day will be the best one so far.
If the merchandise is sold quickly, that’s a good sign for AMZN stock and the American economy. If it doesn’t, it could potentially mean that a long period of recession is starting. 

But keeping in mind that Americans love a good deal and items on sale, this day is expected to have a positive outcome.
 

Unfortunately, after the stock split that Amazon did back in June, the share went from trading for about $2000 dollars, to $113 at this current moment. Amazon is more than prepared to have some huge sales in the month of July. 

The recent slowdown has given it time to calm down before the storm. Amazon’s logistics operation has doubled in size over the last two years, making it more than ready for new changes and stock increase.

It is no secret that inflation has taken a huge portion out of its worth, cutting what investors are willing to pay for its revenue and earnings.

But Amazon has very little debt. It is currently 70% bigger than it was the last time its stock was this low. 

Capital spending on its cloud and delivery systems were all paid for from cash flow. Amazon is more than ready to grow if the customers are willing to contribute.

If things go well both Amazon, and the market, could go on another bull run.
 

Should Prime Day matter to investors? 
Most of the investors are long-term thinkers so Prime day won’t change their opinion about Amazon as much. Because if Amazon has one bad Prime day, it won’t be a game over, they are most likely to continue investing and shoppers will continue to shop.

But on the other hand, if Amazon Prime day is positive, more people will become part of this network and expand the overall performance of Amazon.  

 

Conclusion

Amazon Prime day is a two day event that offers extreme sales to its own Prime members. Usually this event is happening around Amazon’s birthday. Prime Day has mostly positive influence on the AMZN share price, which tends to increase and provide a return for the investors. For this year’s event it is expected to have a solid return for amazon too.

Amazon did a stock split which helped new investors to jump in.