Amazon.com, Inc.: This Holiday Data Is Amazing for AMZN Stock

AMZN Stock
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A Victory for AMZN Stock

As Amazon’s Cyber Monday comes to a close, it is clear that Amazon.com, Inc. (NASDAQ:AMZN) is the big winner from Thanksgiving weekend. While Amazon stock doesn’t yet reflect the paradigm shift, the numbers tell a very clear story: namely, that holiday shopping is migrating to Amazon’s turf.

Consumers are expected to have blown $3.36 billion in online sales during Cyber Monday, 9.4% more than they spent last year, according to Adobe Digital Insights. Between midnight and 10 a.m. alone, sales topped $540.0 million, $205.0 million of which took place through mobile phones. (Source: “Cyber Monday promotions run wild as retailers battle mighty Amazon,” MarketWatch, November 29, 2016.)

Even the National Retail Federation says that online shopping is taking over, claiming that in-store traffic continued to fall, while the number of digital consumers rose 4.2%. These trends lead to hard cash in the pockets of online retailers like Amazon.

There was $1.0 billion in online sales from Thanksgiving Day, not to mention $3.34 billion in U.S. online retail sales from Black Friday. To be sure, many of these shoppers were lured in by massive discounts, but the overall surge cannot be denied.

Rather than trudging out into shopping malls and department stores, more and more Americans are comfortable accessing holiday sales through a screen. Traditional retailers like Wal-Mart Stores, Inc. (NYSE:WMT) and Macy’s Inc (NYSE:M) are hurt by this trend because investors associate online shopping with Amazon stock.

Amazon is digital-native, meaning it was born on the web. It understands how people search for goods on the Internet, when they like to buy, and how they pair different products. These insights are mapped and used daily by Amazon’s recommendation algorithm.

Newer competitors like Alibaba Holding Group Ltd (NYSE:BABA) may use Cyber Monday to make inroads into the American e-commerce market. Some analysts  believe that the Chinese rival could poach profits from Amazon, which could help explain the lackluster movement in Amazon stock.

However, most analysts are overlooking a simple fact: Amazon won the larger fight. Whether or not the company loses a point of market share, its business depended on moving the shopping experience online. History will show the company achieved that goal.