Analyst Predicts Prime Momentum Surge for AMZN Stock
Amazon (NASDAQ: AMZN) commenced its 2025 holiday season with the Prime Big Deal Days on October 7-8. This promotional event encouraged many retailers to launch competitive campaigns to attract early shoppers. Analysts express optimism regarding Amazon’s performance during this period.
Surge in Website Traffic
According to TAG analyst Joe Feldman, Amazon saw an impressive 21% increase in website traffic within the first 36 hours of its event. This spike was in comparison to the previous five days, indicating a robust consumer response.
Successful Partnerships
Amazon capitalized on its relationships with key brands, including:
- Ashley Furniture
- Crayola
- Dyson
- Disney
- Gap
- Levi’s
- New Balance
- Swarovski
These collaborations allowed Amazon to offer appealing deals, enhanced by fast and free shipping that increased convenience for shoppers. The company’s generative AI-powered shopping assistant, Rufus, also played a crucial role by assisting customers with offers and gift ideas.
Competitive Retail Environment
Traditional retailers were prepared for the competition posed by Amazon’s event. Notable promotions included:
- Costco’s Member Savings Event
- Target’s Circle Week (October 5-11)
- Walmart’s Deals Event (October 7-12)
Research by TAG assessed promotional activities across 68 retailers. Findings revealed that:
- 16 retailers (24%) were more promotional than in October 2024.
- 31 retailers (46%) maintained similar promotional efforts.
- 14 retailers (21%) were less promotional.
- 7 retailers (10%) exhibited mixed trends.
Outlook for Amazon
Feldman highlighted that Amazon executed the Prime Big Deal Days effectively. The event not only showcased a diverse product assortment at competitive prices but also solidified Amazon’s presence in consumers’ minds for the upcoming holiday season. This positioning is poised to support Amazon’s market share expansion.
Feldman posits that Amazon’s strategic advantages include a strong Prime membership base and thriving partnerships with small businesses. Additionally, growth within sectors like grocery, private label products, pharmacy, logistics, and generative AI is anticipated to enhance Amazon’s long-term value.
Feldman maintains an Outperform rating on AMZN stocks with a price target of $265. If successful, this could yield an estimated 22% return for investors within a year. The average price target among analysts is $267.77, suggesting potential gains of approximately 24%. With 43 unanimous Buy recommendations, Amazon stock is rated as a Strong Buy consensus.
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