Amazon began the 2025 holiday season with its Prime Big Deal Day, and many retailers jumped in with competitive promotions to snag early consumer spending.
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This year’s event took place on October 7th and 8th. TAG analyst Joe Feldman observed a positive response, noting that Amazon’s website traffic jumped about 21% in the first 36 hours compared to the previous five days, according to data from Google Trends.
The company partnered with significant brands like Ashley Furniture, Crayola, Dyson, Disney, Gap, Levi’s, New Balance, and Swarovski to draw in shoppers with appealing deals. Feldman also pointed out that the benefits of fast and free shipping added extra value for consumers. Additionally, Amazon continued to utilize Rufus, a conversational shopping assistant, to assist customers in finding special offers and gift ideas.
However, competitors were prepared. Traditional retailers took proactive steps ahead of Amazon’s event, boasting strong inventories and enticing promotions. Costco ran a Member Savings event, Target launched a Circle Week going from October 5th to 11th, and Walmart held its Walmart Sale from October 7th to 12th. TAG’s research team looked at promotional activities from 68 different retailers and found that around 16 companies (about 24%) increased their promotions compared to last October, while 31 companies (around 46%) maintained similar levels, and 14 companies (about 21%) decreased promotions. The other seven (approximately 10%) had varied or unclear trends.
“We think Amazon did quite well during Prime Big Deal Day, showing effective marketing both before and during the event, a wide product selection at attractive prices, and efficient execution,” Feldman expressed. He added that Prime Big Deal Day keeps Amazon front of mind for consumers this holiday season, which should benefit growth.
Taking a broader view, Feldman believes Amazon is positioned to grow its market share, especially leveraging its stable Prime membership base, solid small business partnerships, and technological advantages. He highlighted that growth in areas like groceries, private labels, pharmacies, logistics, and generative AI should contribute to long-term value. Meanwhile, consistent growth and profitability in AWS and advertising are expected to bolster the retail sector.
In conclusion, Feldman rates the stock as Outperform (essentially a Buy) with a price target of $265, suggesting a possible 22% return after one year.
The average price target from analysts is slightly higher at $267.77, indicating about a 24% increase in one year. Amazon has seen extensive positive coverage from analysts, holding a consensus rating of Strong Buy based on 43 unanimous Buys.
