Amazon's (AMZN) Recent Blanket Discount Promotions Might Hint at Desperation
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Price: $247.49 +0.07%
Rating Summary:
68 Buy, 7 Hold, 2 Sell
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Today's Overall Ratings:
Up: 3 | Down: 15 | New: 25
Rating Summary:
68 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 3 | Down: 15 | New: 25
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Amazon.com (Nasdaq: AMZN) is stronger on the session amid positive comments out of Wells Fargo.
The firm notes that Amazon has stepped up the promotions recently. According to sources, Amazon sent out email to select customers offering 10 percent off Amazon.com-sold items, with minimum purchases ranging from $100 to $500.
Notably, Amazon hasn't offered a "blanket" deal like this is some 10 years (Wells dates it back to 2002). Typically, Amazon might focus-in on one specific segment, like clothing or video games.
Key takeaways from this news might be slower-than-anticipated sales or that Amazon is simply trying to bring back customers who have strayed away this holiday season. Or, both.
Wells notes that the latest comScore data points to e-commerce sales tracking to 13 percent growth, below original expectations calling for 17 percent growth.
Offsetting some of the hard data is more people upgrading to an Amazon Prime membership. With shipping times of 2-, 1-, or even same-day in some markets, those customers might be putting off buying goods this early in December. Earlier Tuesday, Amazon issued a press release that Prime members would be able to place orders as late as December 21st for December 24th delivery.
Shares of Amazon are 1.8 percent higher today, off of intraday highs.
The firm notes that Amazon has stepped up the promotions recently. According to sources, Amazon sent out email to select customers offering 10 percent off Amazon.com-sold items, with minimum purchases ranging from $100 to $500.
Notably, Amazon hasn't offered a "blanket" deal like this is some 10 years (Wells dates it back to 2002). Typically, Amazon might focus-in on one specific segment, like clothing or video games.
Key takeaways from this news might be slower-than-anticipated sales or that Amazon is simply trying to bring back customers who have strayed away this holiday season. Or, both.
Wells notes that the latest comScore data points to e-commerce sales tracking to 13 percent growth, below original expectations calling for 17 percent growth.
Offsetting some of the hard data is more people upgrading to an Amazon Prime membership. With shipping times of 2-, 1-, or even same-day in some markets, those customers might be putting off buying goods this early in December. Earlier Tuesday, Amazon issued a press release that Prime members would be able to place orders as late as December 21st for December 24th delivery.
Shares of Amazon are 1.8 percent higher today, off of intraday highs.
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