What is Prime Day and why does it impact so many companies?

Prime Day is Amazon's annual sales event, now extended to four days, offering deep discounts to Prime members. What started as an Amazon-specific event has evolved into an industry-wide phenomenon as competitors like Walmart and Target launch their own competing sales. This creates a ripple effect across the entire e-commerce ecosystem, benefiting not just retailers but also logistics companies, payment processors, and advertising platforms that all experience increased activity during this concentrated shopping period.

Why invest in multiple companies instead of just Amazon for Prime Day?

While Amazon certainly benefits from Prime Day, investing across the entire ecosystem captures value from multiple angles of this retail event. When millions of consumers shop online simultaneously, packages need to be delivered (benefiting UPS and FedEx), payments must be processed (helping Visa and PayPal), ads drive traffic (boosting Google and Meta), and even packaging materials see increased demand. This diversified approach reduces your risk while still giving you exposure to the seasonal sales boost.

What are "logistics companies" and how do they benefit from shopping events?

Logistics companies like UPS, FedEx, and Prologis are responsible for the infrastructure that moves products from warehouses to consumers' homes. They handle shipping, delivery, warehouse management, and supply chain operations. During major shopping events like Prime Day, these companies experience a significant surge in volume as millions of additional packages enter their networks. This increased volume typically translates to higher revenue, though they must also manage the operational challenges of handling the surge efficiently.

What does "Market Cap" mean in the stock cards?

Market capitalization (or "Market Cap") represents the total value of a company's outstanding shares of stock. It's calculated by multiplying the current stock price by the total number of shares. Market cap helps you understand the relative size of a company - larger market caps (like Amazon or Google) typically indicate more established companies, while smaller market caps may represent companies with more room for growth but potentially higher risk.

How might "Potential Profit %" be calculated for these stocks?

Potential Profit percentage typically represents analysts' estimates of how much a stock might appreciate over a specific time period, often the next 12 months. This estimate is usually based on financial analysis, growth prospects, industry trends, and company performance projections. Remember that these are estimates only, not guarantees, and actual performance can vary significantly from these projections based on market conditions and other factors.

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Retail's Summer Sales Showdown

Amazon has doubled Prime Day to four days, triggering an all-out battle among retailers. This carefully curated collection includes companies across the entire e-commerce ecosystem that stand to benefit from this intensified period of summer spending.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 3