Amazon Prime Day Sales Drop 14%, Stock Falls Amid Concerns Over Disappointing Sales

Amazon's stock is down as a report from Momentum Commerce shows a 14% drop in Prime Day sales compared to last year. The drop may be due to Amazon doubling the length of Prime Day, spreading out customer spending, and fewer deals going live at the beginning. Analysts at Wells Fargo remain optimistic, raising their revenue forecasts and price target to $238. The consensus rating on Amazon stock is Strong Buy with an average price target of $245.48.

Amazon's stock has seen a notable decline following a report from Momentum Commerce, which indicates a 14% drop in Prime Day sales compared to last year. The extended duration of Prime Day, from 48 hours to 96 hours, has been cited as a potential factor contributing to the decline in sales. Additionally, fewer deals going live at the beginning of the event may have also influenced the reduced sales figures.

Analysts at Wells Fargo remain optimistic about Amazon's future, raising their revenue forecasts and price target to $238. The consensus rating on Amazon stock remains Strong Buy, with an average price target of $245.48. Despite the recent dip in Prime Day sales, investors are encouraged by the company's long-term growth prospects and the potential for continued innovation in its e-commerce, cloud computing, and advertising segments.

Amazon Prime Day 2025, held from July 8 to 11, was expected to generate significant sales, with an Adobe Analytics forecast projecting online spending to surge to $23.8 billion across US retailers during the 96-hour event. However, the actual sales figures fell short of expectations, highlighting the challenges faced by the company in maintaining its market share and customer engagement.

The extended Prime Day event was intended to provide more opportunities for customers to find deals and discounts, but the spread-out customer spending may have diluted the overall impact of the event. Additionally, the fewer deals going live at the beginning of the event could have deterred early shoppers, leading to a slower start to the sales period.

While the drop in Prime Day sales is a setback for Amazon, the company's long-term growth prospects remain strong. The e-commerce giant continues to invest heavily in its logistics, AI, and advertising businesses, positioning itself for continued success in the competitive retail landscape. As the company enters the back half of the decade, its performance will be determined by its ability to maintain its market share in e-commerce, grow its cloud computing business, and capitalize on the high-margin advertising segment.

References:
[1] https://economictimes.indiatimes.com/news/international/us/amazon-prime-day-sale-2025-deals-in-usa-dates-discounts/articleshow/122303291.cms
[2] https://www.cnn.com/markets/stocks/AMZN
[3] https://247wallst.com/forecasts/2025/07/04/amazon-amzn-stock-price-prediction-in-2030-bull-base-bear-forecasts/