Premarket shares: Why this Prime Day might fall flat for Amazon’s inventory
What’s happening: In 2020, analysts estimated Amazon’s Prime Day notched sales of $9 billion to $10.5 billion. The sales rush as the economy reopens could encourage even bigger spending this time around by consumers armed with excess savings. Adobe Analytics thinks spending could reach $11 billion.
Amazon (AMZN) shares have risen in six of the past nine trading sessions, and are now just 1.3% below their all-time peak reached in September 2020.
But there are a few reasons that Prime Day may not help the company’s stock as much as one might expect.
First, there’s the impact of global supply chain disruptions from the pandemic. Some independent sellers interviewed by CNN Business said they can’t offer their typical promotions because they’re worried they might not be able to meet customer demand. They also can’t afford the hit to profits as the cost of moving goods around the world rises.
“I don’t have enough profit margin to do it,” said Ivan Ong, the cofounder of Keababies, which…
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