Amazon held its two-day Prime Day event this week, but one trader says there’s another e-commerce stock that looks like a better option now.
Amazon’s (NASDAQ: AMZN) Prime Day has come and gone this week.
While the aftermath of Prime Day usually comes with superlatives about what a smashing success the shopping day it was, this year’s post-sale reaction was a bit more muted.
Amazon said that “Prime Day 2021 was the biggest two-day period ever for Amazon’s third party sellers, nearly all of which are small and medium-sized businesses,” and a press release included the usual trumpeting of“record-setting” activity, and “incredible” results.
However, there are clues that this year’s results were softer than previous years.
“Amazon did disclose that 250 million items were sold, which represents a 20% two-year [compound annual growth rate] from 175 million items sold in Prime Day 2019, but likely limited growth vs. 2020,” Bank of American analysts Justin Post and Michael McGovern said in a note. “Given the shorter period of time since the last Prime Day, the lack of new countries added, and the lack of new disclosures, we believe this was a relatively lower growth Prime Day vs. prior years.”
While Amazon doesn’t disclose total Prime Day sales, Post and McGovern estimate that this year’s event’s gross merchandise volume came in at $9.55 billion, up just 7% from last year versus 2020 Prime Day gross merchandise volume growth of 54% year-over-year.
Still, Blue Line Capital’s Bill Baruch argues that every investor ought to have exposure to Amazon, and is watching for the stock to break above resistance at $3,550 before getting more bullish.
Until then, Baruch says there’s another retail stock that might be a better bet right now.
“One that is really more quiet than others is eBay (NASDAQ: EBAY),” Baruch said. “EBay has quietly had a tremendous year, and although it’s pulled back a little bit, I think that’s where we want to find the buying opportunity. There’s a lot of support running into about $60 to $62.50.”
