Despite Some Cannibalization, Amazon (AMZN) Prime Day See as a Success - Baird

Baird analyst Colin Sebastian reiterated an Outperform rating and $800 price target on Amazon.com (NASDAQ: AMZN) after the company announced that customer orders on Prime Day 2016 surpassed Prime Day 2015 by more than 60% worldwide and more than 50% in the U.S., with mobile order volume more than doubling from last year’s event.

"While we believe there is overall incremental sales volume created by the new shopping holiday, we also note that some order volume is "cannibalized" from days both before and after Prime Day," he commented. "Nonetheless, we view Prime Day as a success, and helps to boost traffic and visibility for Amazon ahead of the seasonally stronger shopping months of the year."

Sebastian notes that Shopping Holidays are here to stay and Amazon indicated that it would repeat Prime Day again next year.

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $748.21 yesterday.

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