Love of, Inc. (AMZN) Prime Just Keeps Growing: Top Analyst, Inc. (NASDAQ:AMZN) just took one more game-changing Prime Day in stride this year, posting a 60% surge in year-over-year unit sales, matching the growth levels of this time last year. Cheering this continued 60% Prime Day growth momentum as “an impressive feat” for the company, top analyst Michael Olson at Piper Jaffray is out with bullish praise, reiterating an Overweight rating on shares of AMZN with a $1,200 price target, which represents a 19% increase from where the stock is currently trading. (To watch Olson’s track record click here.)

Prime Day could have very well benefited from Amazon’s decision to magnify its global outreach, hitting 12 countries from 10 in 2016, and pushing 24 hours of sales up to 30 hours this year. In reaction, Prime member purchases shot up 50% with Amazon app orders circling back past twice over, with more Prime members joining the base during this event “than during any other day in Amazon’s history.” In other words, “[…] the compounding love of Prime is continuing,” asserts the analyst. Likewise, Amazon’s Echo not only was the top item on Amazon consumers’ buy list, but the device’s sales escalated 7 times over compared to Prime Day of 2016.

Olson highlights, “We believe that this Prime Day will add ~1.4ppts tailwind to unit growth in Q3 and the company’s disclosures indicate that engagement across the Prime base increased. Assuming 1.4ppts of tailwind, we believe our/Street retail estimates suggest that Amazon retail ex Prime Day will decelerate unit growth from 24% in Q1’17 to ~20% in Q3’17, which we believe will prove slightly conservative.”

Ultimately, Olson believes the online auction and e-commerce leader is relying on its incredible “branding event” of the year, Prime Day, to “train customers,” particularly considering, “Driving more Prime adoption and pushing consumers to have an Alexa enabled device will, over time, increase order volume and train users to become comfortable with voice ordering, a pre-cursor to becoming comfortable with automated consumption. Additionally, Amazon discounted grocery items as the company looks to get more buyers comfortable with using Amazon for items in that category.”

TipRanks analytics demonstrate AMZN as a Strong Buy. Out of 29 analysts polled by TipRanks in the last 3 months, 26 are bullish on Amazon stock while 3 remain sidelined. With a return potential of nearly 12%, the stock’s consensus target price stands at $1,126.42.

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts