Amazon's AI-Powered 4-Day Prime Day Will Drive Billions In Sales

Core Viewpoint - Bank of America Securities analyst Justin Post maintains a Buy rating on Amazon.com with a price forecast of $248, highlighting the upcoming 11th Prime Day event which will last for 4 days, double the length of last year's event [1] Group 1: Prime Day Event Details - The 11th Prime Day event will offer millions of deals across 35+ categories, including electronics, fashion, and personal care, with additional savings in less penetrated categories like grocery, gasoline, and travel [2] - Prime Day will be held in 26 countries, with some starting later in the summer for better timing, and Amazon is leveraging AI to enhance retail efficiency and transparency during the event [3] Group 2: Financial Projections - The analyst projects a 55% year-over-year growth in first-party sales to $11.5 billion and a 67% growth in third-party sales to $10.0 billion during the 4-day event, estimating a total Gross Merchandise Value (GMV) of $21.4 billion, which represents a 60% year-over-year increase [4] - Prime Day is expected to account for 10.3% of the total projected $208 billion GMV for the third quarter, an increase from 7.0% last year [5] Group 3: Market Position and Logistics - The extension of the savings window indicates that Amazon has enhanced retail logistics capacity to support promotions, with inventory availability not being a constraint despite tariff concerns [6] - Despite competition from retailers like Walmart, Target, and Best Buy, the event is anticipated to positively influence Amazon's branding and Prime membership sign-up and retention [5]