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Amazon.com Inc. (AMZN) experienced a significant drop in performance during its October Prime Day sales event held on October 7 and 8, 2023. The average order size decreased by 15% from July’s event, falling from $53.54 to $45.42. Additionally, 44% of orders were under $20, compared to 37% in July.
Amazon’s free cash flow has decreased sharply to $18.2 billion from $53.9 billion last year, as the company increased investment in AI and infrastructure, spending $32.2 billion on property and equipment in Q2 2023—nearly double the previous year’s amount.
Furthermore, potential new tariffs from the Biden administration could critically impact Amazon, which sources up to 70% of its products from China. Following remarks from former President Trump about increasing tariffs on Chinese imports, Amazon’s stock fell approximately 5%.
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