Amazon Set to Batter Competition Ahead of Holidays

Investing

Published: November 3, 2024 8:41 am

Last Updated: November 4, 2024 7:57 am

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There is not a single sign that Amazon.com Inc. (NASDAQ: AMZN) will fail to continue to own e-commerce this holiday season.
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Amazon.com Inc. (NASDAQ: AMZN) stock is up 30% this year, while the S&P 500 is 23% higher. Most of the attention to the company’s recent earnings was focused on its success in the AI cloud sector. However, its North American retailer posted amazing numbers. Revenue was up 8% to $95.5 billion. Operating income for the same segment rose 32% to $5.7 billion. Amazon’s guidance includes the whole company. It was for an increase of 7% to 11%.

The holiday season starts on October 30, November 1, or Thanksgiving, depending on who one asks. When the U.S. Department of Commerce posted the third quarter’s numbers, it showed that consumer spending rose the most in a year and a half. Inflation also slowed, which should increase discretionary spending.

Amazon still completely dominates the U.S. e-commerce business. As of 2023, it holds a 38% share. Walmart Inc. (NYSE: WMT) was well behind, at just below 7%.

Amazon’s advertising revenue has become a large part of its revenue mix. It rose 19% in the most recent quarter to $14.3 billion. Amazon’s US online ad market share has grown to 14%, closing in on Meta’s 24%.

There is not a single sign that Amazon will fail to continue to own e-commerce this holiday season.

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