Amazon Stock Falls On Prime Day Kickoff As Early Sales Estimates Paint Underwhelming Picture

Amazon.com, Inc. (AMZN) shares closed 1.8% lower on Tuesday, the kickoff of its Prime Day sale, as mixed analyst projections cast uncertainty over this year's high-stakes event.

Although a projection by Adobe Analytics signaled robust sales, another third-party estimate showed lackluster buying in the opening hours.

A report by e-commerce analytics firm Momentum Commerce stated that Prime Day sales were down 14% in the first four hours compared to the same period during Prime Day 2024.

The slower early activity may be partly due to this year's event spanning four days, which is double the length of last year's two-day Prime Day.

On Stocktwits, the retail sentiment for AMZN shited to 'bullish' from 'neutral' the previous day, although some user posts showed skepticism. AMZN was among the top 10 trending tickers on the platform at the time of writing.

One user said this year's Prime Day feels like a "clearance (a)isle at a JC Penney store" and recommended shorting the stock.

"$AMZN guess no one cares about prime day this year," said another user.

Analysts are broadly expecting growth. Adobe Analytics projected that the event will drive $23.8 billion in online sales for U.S. retailers, representing a 28.4% growth compared to last year's event. JPMorgan predicts a 10% increase in sales.

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