Exciting news! Amazon Prime Day 2023 is just around the corner. And we all know what that means, or do we?

What is Amazon Prime Day?

Prime Day is a yearly event organized by Amazon exclusively for its Prime members. On this day Amazon is offering discounts on a wide range of products across their website.

This tradition started in 2015 to celebrate Amazon's 20th anniversary but, in the beginning, faced mixed results. During its growth phase Prime Day was promoted as a one-day event with more deals than Black Friday, however, it has now evolved into a 48-hour sale followed by several weeks of teaser offers and sales. Find out more about last year’s Prime Day here.

Amazon Prime Day will begin on Tuesday, July 11th, and last till Wednesday, July 12th. 

What changes or updates can be expected for Prime Day this year?

Amazon has recently introduced an exclusive invite-only program for special deals during this two-day event. The program now focuses on addressing the high demand and potential rush associated with popular products, such as a $100 4K smart TV. This update lets Prime members express their interest in particular products by visiting their respective listings and requesting an invitation before the event starts. If they get selected, Prime members will receive a unique link via email to purchase the wanted item during this important event.

Also, starting from July 3, 2023, up until July 10, Prime members can get a $5 promotional credit with the purchase of an Amazon eGift Card that is worth $50 or more. This really seems like an excellent opportunity to save a little extra money, if you already plan to spend at least $50 on Prime Day.
How does this gift card work? Well, after an order is placed, shoppers will receive an email with instructions for redeeming the credit (which is redeemable through Friday, August 25), and their savings will reflect at checkout. There is a catch, though: This credit can be applied only to items shipped and sold by Amazon, not products sold by third-party sellers or gift cards.

Amazon’s stock this year

During the 2022 Prime Day event, online sales for Amazon reached a number of $12 billion over the course of two days. Prime Day has proven to be a major success for Amazon, and it is anticipated that many Americans will once again keep an eye on the website in search of good deals this year.

This is not only a good chance to save money, but it’s also a great opportunity to earn money by participating in the stock market. That’s why investors are eagerly waiting for another successful Prime Day, hoping to surpass last year's sales benchmark of $12 billion. Because Amazon Prime Day has a proven record of impacting AMZN stock positively.

Despite the announcement of Amazon Prime Day, the stock price of Amazon experienced a slight decline of 1%, because of the FTC-related news. Currently, the stock is being traded at $130.36. The surge in the generative AI sector has had a significant impact on the technology market, resulting in a 45% increase in Amazon's stock price only this year.

While Amazon may not be the frontrunner in the competitive AI race, its potential to revolutionize the business will surely impact the stock.

Jefferies analysts have recently raised Amazon's share price target from $135 to $150, emphasizing the potential of AI in Amazon's cloud computing business.

What else is happening with Amazon?

Amazon has faced legal challenges related to its Prime memberships. How, you may ask?  The Federal Trade Commission (FTC) filed a lawsuit against the company. They are accusing Amazon of deceiving and trapping numerous consumers into expensive Prime subscriptions by failing to provide clear cancellation options. FTC’s chairwoman Lina Khan stated that these manipulative tactics have negative consequences for both consumers and legitimate businesses that are not Amazon.

On the bright side, there is some positive news regarding this e-commerce!

Amazon will boost its data center operations in Ohio as part of a massive new investment.

Amazon Web Services (AWS) plans to invest approximately $7.8 billion into building new data centers. These data centers will consist of various technology infrastructure components such as computer servers, data storage drives, networking equipment, and other necessary resources for cloud computing. The investment is expected to be completed by the beginning of the year 2030, as Ohio Governor Mike DeWine mentioned in a recent press release.

What to expect from Amazon Prime Day 2023?

A very successful Prime Day has the potential to impact the company's stock price by dictating an upward trend.

Conclusion

In conclusion, Amazon Prime Day holds great significance and has a great impact on both customers and investors. For customers, it represents a shopping extravaganza where they can access exclusive deals and discounts across a huge range of products. On the other hand, Prime Day is crucial for investors as it showcases Amazon's ability to drive sales, generate revenue, and strengthen its market position.