Amazon Shares Edge Higher as Sale Event Underway

Amazon (AMZN) traded at $258.81, up 0.98%, after recovering from an intraday low near $253.30. The stock climbed above $258 by early afternoon and held near its session highs as the company pressed on with its Prime Big Deal Days event amid softer consumer confidence.

Prime Big Deal Days Puts Consumer Spending to the Test

Amazon launched Prime Big Deal Days on October 6 while consumer confidence remained under strain. The event, a members-only savings promotion for Prime subscribers positioned ahead of the holiday season, serves as a near-term check on household willingness to spend. The Conference Board's consumer confidence index fell to 81.9 in September, Reuters reported, marking its weakest reading since 2014 and adding pressure across consumer-focused stocks. The index is one of the most closely watched barometers of U.S. household sentiment.

The Consumer Discretionary Select Sector SPDR Fund declined 0.47% during the week ending October 2. Amazon is the fund's largest holding and carries significant weight within the consumer discretionary sector, meaning its holiday sales performance could influence broader sentiment around discretionary spending.

The company has broadened its lower-priced offerings as households navigate tighter budgets and shifting spending habits. Amazon reported 17% growth in worldwide paid units during the second quarter, and its budget-focused Amazon Haul platform offered more than six million U.S. products priced below $10 in July.

Push Into Groceries and Everyday Essentials

Amazon has also sharpened its focus on groceries as it expands everyday retail categories. Monthly active customers purchasing perishables have increased more than 50% since the beginning of 2026, growth that supports the company's push beyond traditional online shopping into frequent household purchases.

Amazon reported its second-quarter results before September's sharp decline in consumer confidence. Prime Day timing also complicated comparisons between the second and third quarters. Management said third-quarter growth would rise by nearly 400 basis points once Prime Day timing effects are excluded.

The company expects third-quarter revenue of $197 billion to $202 billion, a range representing growth of roughly 9% to 12% from $180.2 billion one year earlier. Its upcoming quarterly results will provide more detail on retail demand during the current holiday period.

AWS and Advertising Anchor the Broader Business

Amazon Web Services generated $16.6 billion of Amazon's $27.5 billion in second-quarter operating income, roughly 60% of the companywide total, though the total included about $1.2 billion tariff refunds and an energy contract accounting benefit. AWS nonetheless remains a major contributor to the company's overall operating performance.

Advertising continued to expand during the quarter, generating $19.8 billion in revenue, a 26% increase that added another high-growth business alongside Amazon's cloud operations. Together, these segments provide revenue streams beyond the company's core online retail operations.

Amazon also reported $62.6 billion in second-quarter GAAP net income, a figure that included $53.4 billion in non-operating pre-tax income, mainly linked to its investment in artificial intelligence company Anthropic. Meanwhile, Amazon continues to spend heavily as it expands its infrastructure, cloud capacity, and broader logistics network.