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Amazon Prime Day kicks off 2020 holiday shopping

Amazon Prime Day kicks off today. Yahoo Finance's Julie Hyman discusses.

Video Transcript

JULIE HYMAN: Let's start with what's going on in big tech before we move on to earnings. Amazon shares are up today, that's one of the reasons that the NASDAQ is higher. It's a Prime Day event or it's Prime Days, in this case, because it's today and tomorrow, started at 3 AM Eastern. Remember this is an event that was moved from July, when it typically happens, amidst the coronavirus pandemic.

JP Morgan estimates that Prime Day revenue will be up year over year 42% to about $7 and 1/2 billion. To put it in perspective, $7 and 1/2 billion from this event, the annual revenue of Amazon last year was $280 and 1/2 billion. Including not of course just the retail operations but Amazon Web Services and some of its other things as well. Really Amazon uses this as a way to try to drive membership sign-ups and membership revenue. Those customers tend to be more lucrative for the company. And eMarketer estimates that US prime members will rise to 142 and 1/2 million this year.

At the same time that this Prime Day event is happening, I should mention, German Amazon workers are striking at seven warehouses in that country to ask for better pay and working conditions. Just something to mention in the background there. And then finally, I also want to mention the stock is up about 78% year to date, that makes the price to earnings ratio on Amazon, 132.