Amazon’s (NASDAQ: AMZN) Prime Day has finally ended, but don’t dismiss the power of a great bargain. Indeed, it’s hard to be a confident consumer these days, with the high level of inflation, recession fears, high costs of borrowing, and all the sort. Let’s not forget about the alarming debt levels in Canada. Indeed, it’s not too hard to imagine many folks won’t be splurging too much this Prime Day.
As challenged as the consumer may be, however, I would not go as far as to say Prime Day has passed its prime. In fact, Prime Day may be poised to re-enter its prime after several years of pandemic-induced challenges.
Undoubtedly, we’ll learn about how much of an impact the latest Prime Day had. With consumers being more deliberate about how they plan to spend their capital, I think that big Boxing Day-like sales such as Prime Day could be more impactful than many may think. Why? We all need our dollar to go further these days. And if you’re like many who’ve been building up a shopping list over the course of a year or more, waiting for that desired item to go on sale, Prime Day may finally be the perfect time to act.
Amazon stock’s recovery still has a ways to go
For now, Amazon stock is in recovery mode after one of the ugliest selloffs in recent memory. Year to date, shares are up an impressive 52.4%. That said, the relief gains still haven’t allowed shares of AMZN to eclipse those all-time highs.
Undoubtedly, the stock got crushed by around 55% from peak to trough. Though Amazon stock was arguably one of the priciest of the batch, I think that the current recovery is just getting started. Prime Day and other value-maximizing offerings could be key to getting the retail business back on the right track until consumers feel upbeat again about spending more online.
The $1.34 trillion company has other growth businesses that can help it rally even higher. Indeed, the cloud and even artificial intelligence could be sparks that propel shares toward highs. As for Prime Day, though, don’t be too discouraged if the current Prime Day isn’t one of the hottest on record. I think Prime Days deals are poised to improve along with consumer sentiment over time.
E-commerce is still a great long-term trend to invest in
Canadian e-commerce sensation Shopify (TSX: SHOP) has been a great e-commerce player that’s also recovering this year after a historic slide last year. Shopify and Amazon may be in a spot to duke it out as e-commerce heals from a potential recession. Like Amazon, though, don’t be shocked if the post-recession recovery gains are in the books well before the recovery finally does materialize.
E-commerce is still a magnificent trend to invest in. As such, nibbling gradually at either AMZN or SHOP stock could prove wise in the grander scheme of things.
The Foolish bottom line
Prime Day isn’t out of its prime. This time around, it could help fuel the broader appetite for a good deal. And goodness knows, we all could use a nice discount after the surge of inflation we’ve all had to tackle in recent quarters.
