Yahoo Finance Live's Brian Sozzi breaks down the reasons why Amazon is holding two Prime Day events.
JULIE HYMAN: Amazon will reportedly be holding two prime days this year for the first time ever. The first Prime event coming up on July 12 and 13. The second will be in the fall. And Sozz has got a take on this.
BRIAN SOZZI: Yeah, my quick hot take is this, the sentiment around how Prime Day might perform for Amazon is dour. A "Wall Street Journal" story, of course, digging into this a couple of days ago. I believe looking how growth rates have slowed in terms of sales and website visits compared to prior Prime days.
I'm on the other side of this at least for now and at least in terms of analysis for a couple of reasons. First, you look at-- there could be a sales, nice sales boost year over year just from the pure fact Prime Day is happening in more-- in four more countries this year versus last year. Those countries include India, Saudi Arabia, the UAE, and Egypt.
So in terms of year over year comparisons, you're looking at a potential nice boost versus last year for Amazon. I look at Jefferies Analyst Brent Thill overall looking for Prime Day sales of $4.7 billion this year versus last year, which is a nice number.
And number two, I think you have to keep in mind that why does Prime Day even exist? It was created to drive Prime memberships. And just the fact that now this is going to-- There I am in an Amazon box, of course. Just the fact that this is continuing to happen drives subscriptions here in the US. But also in those new countries that I just mentioned. Once you're in that Prime flywheel, you're likely continuing to spend on goods every single day.
BRAD SMITH: Can you imagine, you've got mail and Sozzy is in the box.
BRIAN SOZZI: Yeah, go figure, right? Amazing things we do here.
BRAD SMITH: It's interesting, the tip ranks data that actually tracks the website visits actually has website traffic for Amazon down year over year. So this comes at a time where they're working through inventory and also seeing lower website traffic, too.
BRIAN SOZZI: Yeah, and this is a good point brought up by our senior markets editor, Myles Udland, it was in our meeting last night, you know, just the fact that Amazon might be having a two-day event might be a negative. Just they're probably going to have to move a lot of inventory because the consumer is spending environment has done. What better way to offer up a lot of things for sale online to help clear out those warehouses and maybe have a more clean inventory position, better margins for the holiday shopping season. So a good point by Myles.
BRAD SMITH: Holiday sales in July. We're going to be watching that closely.