Amazon shares surged the day after Christmas after both the e-commerce giant and third-party reports showed strong holiday sales for online sellers.
Mastercard SpendingPulse said that overall retail sales rose 3.4% in the period from Nov. 1 to Dec. 24. Online sales surged 18.8%, better than last year’s growth of 18.4% as e-commerce continues to take up a greater share of overall retail sales, clocking in with a 14.6% share this year. By comparison, overall retail sales growth slowed from 5.1% in the 2018 holiday season.
Amazon itself shared another vague announcement touting its record growth. Amazon said it had record-breaking sales in the period, and its third-party sellers saw double-digit growth from a year ago, selling more than 1 billion items. Amazon devices – including Echo Dot, Fire TV Stick with Alexa Voice Remote, and Echo Show 5 – were big sellers, and its top-selling departments were toys and games, fashion, home and beauty.
Though we’ll have to wait another month to see Amazon’s quarterly numbers in detail, investors applauded the performance, sending the stock up 4.4% on Dec. 26, its biggest one-day jump since January. However, Amazon’s gains shouldn’t come as a surprise. The stock regularly jumps following the Christmas holiday, as Amazon has built its e-commerce operation to be almost perfectly designed to thrive during the holiday season. Here are three reasons why:
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Source: Usa Today