Amazon‘s annual Prime Day, actually 48 hours this year, certainly boosts memberships — and by extension the value of the company — but the e-commerce giant also needs to focus on serving brands, according to analysts.
“If you look at the Prime membership, each year Amazon makes it more and more valuable … which is ultimately what’s critical to creating shareholder value,” Neuberger Berman’s Daniel Flax told CNBC’s “Squawk Box” on Tuesday.
In the first 24 hours of Prime Day — which began at 3 a.m. ET on Monday and ends at 2:59 a.m. ET on Wednesday — Amazon said worldwide sellers saw their biggest one-day sales in company history.
During last year’s 36-hour Prime Day sale, Amazon said Prime members bought more than 100 million products.
Michael Graham of Canaccord Genuity also emphasized how integral Prime membership is for Amazon. “At Amazon, growth is slowing,” he said on CNBC. “It’s important to make sure your customer lifetime value is as high as it can be.”