U.S. markets closed
  • S&P 500

    +39.95 (+1.06%)
  • Dow 30

    +321.83 (+1.05%)
  • Nasdaq

    +99.11 (+0.90%)
  • Russell 2000

    +19.77 (+1.16%)
  • Crude Oil

    +2.70 (+2.55%)
  • Gold

    +5.60 (+0.31%)
  • Silver

    -0.50 (-2.44%)

    -0.0057 (-0.54%)
  • 10-Yr Bond

    -0.0830 (-2.79%)

    -0.0072 (-0.59%)

    -0.5530 (-0.41%)

    -11.14 (-0.06%)
  • CMC Crypto 200

    +0.70 (+0.17%)
  • FTSE 100

    -0.63 (-0.01%)
  • Nikkei 225

    -457.42 (-1.73%)
  • Oops!
    Something went wrong.
    Please try again later.

Amazon Prime Day 2022: Annual deal event set to kick off on July 12

In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Yahoo Finance tech editor Dan Howley discusses expectations for Amazon Prime Day, plus how Andy Jassy has led the tech giant in his first year as CEO.

Video Transcript

- It's that time of year again folks. Amazon's Prime Day is back again, and kicking off next month. For more on what to expect for this years two-day savings event is Yahoo Finance's Tech Editor, Dan Howley. Dan.

DAN HOWLEY: That's right. We're expecting to see Prime Day kick off on the 12th and 13th this year. That means we're going to be getting big deals for the summer season. And that usually means that we'll see a lot of discounts on Amazon's own goods.

Primarily, its Amazon basics brands, as well as the kind of tech that it has to offer, whether that's a Kindle, or an Alexa, things along those lines. I think those are going to be products that everybody should be looking at in particular. But there's also deals that we'll see for basic products that you would get on Black Friday, or Cyber Monday.

This might be honestly one of the best deal days outside of those two days for things like video games, laptops, anything that you really can think of. Don't forget about home goods, as well. In the first couple of prime days, it was basically like toothpaste and toilet paper. They still have those on sale.

And hey, with inflation the way it is, I'm not going to be sneezing at any kind of deals that I can get on basic home goods. So you know, sneezing you know, get tissues for those, obviously. But you know, I think it's going to be another big year for Amazon.

Every Prime Day seems to do incredibly well, and does better each time. Remember, you got to be a Prime member to get those deals. And you can sign up for a one month trial of Prime, or you can sign up for the yearly trial of subscription of Prime, as well.

- Dan, also got to kind of look at the year in review here of the new head over at Amazon, Andy Jassy, who has been in the job for almost a full year. Two weeks, three weeks out from now, will be a full year. So what's kind of the review thus far?

DAN HOWLEY: Yeah, I mean, look, it's still TBD almost. Because the way that this kind of unfolded for Jassy, really he was kind of doomed from the start for this year, at least, right? If you look at some of the numbers, they had to expand their workforce dramatically.

The stock is down 37% year to date. That's because they had hit a $6 billion headwind in Q1. They're expecting a $4 billion headwind in Q2.

That's supply chain issues. That's the war in Ukraine. That's inflation. Obviously, they're talking about they added some fees for the rising gas prices.

Let me get to just look at how much they expanded over the past two years. In Q1 2020 for instance, they had net sales of $75 billion. In 2020, sorry in 2021, that exploded to $109 billion. And then obviously, we're going into 2022 right now.

We're expected to see increased sales, but the cost of doing business has risen. They expanded their workforce by at least half, about double the size, for that includes fulfillment centers in 24 months. Absolutely wild, wild, numbers there.

And so in Q1 alone, they had seen a loss per share of $7.56. That really hammered the stock big time. And so year-to-date, as I said, it's down 37%.

But you got to wonder how they're going to try to pull this back. There's been talk, obviously, of hiring slowdowns. That's the main thing, because they have too many workers. There's also talk of them trying to sublet some of their warehouses, because that expansion was to cover the pandemic era.

And now that people are going back into brick and mortar stores, they're not buying online as much, because they just simply don't have to. And look, after two years being stuck inside, I don't have a problem walking to the mall, going through shops. I'd rather do that almost at times than shop on Amazon, though I still do use Amazon frequently. And I think a lot of people are trying to find that balance now. Amazon's got to find that balance when it comes to the expenses that it has.

- All right. Yahoo Finance's own tech DH, Dan Howley, stepping in at bat.