Yahoo Finance Live anchors discuss the expectations for Amazon’s second Prime Day event, which kicked off Tuesday for 48 hours.
BRAD SMITH: All right, anyway, [CHUCKLES] Amazon, they got them deals on the sweaters, everybody. Second Prime Day has officially kicked off. Today, the e-commerce giant is offering deals for 48 hours following its record-setting Prime Day in July. The Prime subscribers, they're not shying away from the second event of the year.
82% of subscribers said, yeah, we're gonna participate in this event. And 85% said that they plan to spend over $50. That's according to data from Jefferies. Sozzi, you're getting some Golden Goose shoes?
BRIAN SOZZI: [LAUGHS] They don't sell Golden Goose on Amazon.
BRAD SMITH: I know. I know. They got them on StockX, I checked before the show.
BRIAN SOZZI: These Prime days are essentially used to unload all the private-label junk that Amazon can't sell because nobody wants to use it. But I will note this stat, Brent Thill over Jefferies said, this Second Prime Day can generate about $4.1 billion in sales for Amazon--
BRAD SMITH: Yeah.
BRIAN SOZZI: --ahead of the holiday season. So that is a mighty large number. And yet, you see Amazon stock still under pressure.
BRAD SMITH: You talk about trying to pull forward any type of demand that they can for Amazon, for Walmart, for Target. Target had Deal Days that first started October 6 to 8. It's not even Halloween, folks. And we're talking about some of the holiday deals. Target essentially was just like, you know what? Let's just throw it at the wall here and see what sticks. Black Friday deals, here-- you got them. You want them? There they are.
And so a lot of these deals are just gonna continue to come over all of the weeks leading into Black Friday, Cyber Monday. And then they're gonna do an assessment. All of these brands will or the broader retailers will, on the e-commerce side especially, of how much inventory they still have left, how much still needs to be churned through, and the slate of inventory that's still set to come in once you begin the new year.
And that's really gonna set the [? tenure ?] for where consumers continue to either spend where possible, because discretionary spending that's still going to be a major question mark going into this holiday season regardless of how much the card-processing companies or the NRF is gonna tell you that, yeah, spending is gonna be higher. Yeah, the dollar figures might be higher because there's still an inflationary consideration to this. But at the same time, there is the volume of spending that might look drastically different among consumers.
BRIAN SOZZI: You're getting a gift card from me to Urban Outfitters. I just decided, real time.
BRAD SMITH: Done deal. You get one to Pep Boys for your car.
BRIAN SOZZI: [LAUGHS] Yes! Oh my God. Yes, please. Yes, please.
BRAD SMITH: [? What an omen to that. ?]
BRIAN SOZZI: Order that now, please. Thank you, yes.
BRAD SMITH: [LAUGHS] I guess.
BRIAN SOZZI: That's good. That's good.