Guy Adami Comments on Amazon Bringing Back its Prime Day Sales Event for the Second Time This Year

Bullish Studio

Amazon brings back its Prime Day sales event for the second time this year, jumpstarting the holiday shopping season.   Bonawyn thinks that Amazon is trying to be the first out the door and comments on Amazon's perception of the consumer at this time.   Guy thinks Amazon is getting ahead of something coming this winter and understands why they are is doing this.

Transcript

00:00 Amazon, it's doubling down on its Prime Day events,

00:02 announcing today that it will hold its second sales

00:05 bonanza of the year in just a couple weeks.

00:07 The Prime Early Access sale will take place

00:09 October 11th and 12th, giving the company a jumpstart

00:12 on the holiday season.

00:13 It comes as Amazon is more than 38% off its year high

00:17 as the e-commerce giant grapples with soaring inflation

00:19 and slowing e-commerce sales.

00:21 So is Prime Day encore the answer to a slower consumer?

00:26 Bono and I don't know.

00:27 I mean, if you're telling consumers in October

00:29 you can start holiday shopping and save money,

00:33 maybe they'll spend on Amazon and not other places.

00:36 - Well, that's the thing.

00:37 I think Amazon is trying to be the first out of the door.

00:40 I think, so for them, on the margins, it's a positive,

00:43 but I think generally speaking, what this says

00:46 about the consumer and their perception,

00:48 their read through of the consumer,

00:50 I don't think is a very positive one.

00:52 I also think this is the way for them to kind of bolster

00:54 their Prime sales, and you've seen it kind of trickle down

00:56 with the NFL Thursday night football.

00:59 So I do applaud them for kind of taking steps,

01:03 but I think, again, we've talked about looking through

01:05 and seeing what does the end look like?

01:07 And clearly to me, Amazon is telling you,

01:10 okay, we've burnt a ton of cash.

01:12 CapEx spending, I believe, was something like $40 billion,

01:14 $60 billion, and they're trying to kind of shore that up.

01:18 But the reason why they're doing it

01:19 is because their core constituency

01:22 is going to suffer going forward.

01:24 - Seems like a nice time, though, also,

01:25 to put out sales and get the consumer shopping.

01:27 I mean, if you are a believer that things in the economy

01:31 will get worse as the year progresses, Guy,

01:34 maybe unemployment ticks higher, et cetera,

01:36 get the consumer to spend early.

01:38 - Mm-hmm, but what do they see?

01:41 So, I mean, I totally get it, and I'm with Bono 100%,

01:44 but what do they see that the rest of us

01:45 seemingly don't want to see?

01:47 I mean, they're concerned.

01:48 They want to get ahead of something

01:49 that they probably see coming this winter,

01:51 and it makes a lot of sense.

01:53 So, to me, although it makes a lot of sense

01:55 and it's probably a smart business move,

01:58 it speaks to something I think far more sinister

02:01 that we're facing this winter.

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