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Amazon: Prime Early Access GMV likely to drop 25% compared to July peak day – BofA

Amazon: Prime Early Access GMV likely to drop 25% compared to July peak day – BofA

Written by Sinad Karahimetovic

Amazon (NASDAQ 🙂 announced yesterday that Prime members have ordered over 100 million items with Apple AirPods (2nd generation), Macbook Air M1s, Peloton Bikes, and Bose headphones among the most popular items.

“Our Early Access Sale has been a great start to the holidays, and the best part is that it’s only the beginning. Customers will find millions of must-have deals all season long that will help them continue saving money on gifts for loved ones,” said Doug Herrington, CEO of Amazon Global Stores.

Bank of America analysts estimate $8 billion in gross merchandise value (GMV) for the two-day event, down from the $10.7 billion Amazon recorded in GMV for the July event.

Based on our forecast of $185.7 billion in Q422 for total GMV at Amazon, we estimate that Prime Day could account for about 4% of GMV for the quarter (versus 7% in July), and contribute 2.3 points to year-over-year growth. , down from July’s contribution of 6 pt. For revenue, assuming a 30 percent take rate of 3 points, we estimate revenue of $5.7 billion, versus $7.5 billion in July,” analysts said in a note to clients.

Analysts also note that Twitter mentions of the Prime Early Access event are also down 70% compared to Prime Day in July.

Amazon shares fell about 0.5% in the pre-opening period on Friday.

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