Amazon.com Inc (NASDAQ:AMZN) is poised to win a bigger share of holiday season spending as ecommerce purchases grow, according to analysts at Jefferies.
Third-party data suggests ecommerce growth will accelerate by 9% this holiday season, compared to 7% in 2022, even as overall sales growth slows to 4% from 6% last year.
Meanwhile, Jefferies’ proprietary survey data found that 38% of consumers plan to spend more online, compared to 11% who plan to spend less.
“Our survey of ~1,000 US consumers indicates that 26% of shoppers plan to spend more this holiday season vs. 22% who plan to spend less,” the analysts wrote. “However, the gap between those who plan to spend more minus less narrowed to +4, down from +14 last year.”
“The fashion category (clothing, footwear, accessories) screened most positive of the five categories we asked about, with a gap of +7 of those who plan to spend more minus less,” they added.
That combination of data should benefit Amazon specifically, the firm argued.
“Our survey work supports our view that AMZN will be a key holiday beneficiary as 88% of consumers plan to make a purchase on Amazon.com this holiday season, ~2x the next highest online platform, Walmart.com,” analysts wrote.
“We remind investors that AMZN started the holiday shopping season off strong with their largest October sales event yet, in which 44% of consumers reported shopping, up from 43% last year. We see AMZN's unmatched assortment, fast delivery and broad consumer reach positioning them to capture spending throughout the holiday season,” they added.
Shares of Amazon traded 1.2% higher Monday morning at $140.23.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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