On Cyber Monday, retailers pushed out text messages, push alerts, and video streaming advertisements to American consumers, promoting steeply discounted electronics, toys, apparel, cosmetics, and other items.
Cyber Monday spending could total up to $12.4 billion, according to Adobe Digital Insights, a data tracking service that uses Adobe’s Experience Cloud for e-commerce platforms. According to Adobe, that would be a record and a rise of more than 5.4% from a year ago.
Investors identified Apple (AAPL), Walmart (WMT.N), and Amazon (AMZN.O) as potential winners for the day as of midday.
According to Jim Worden, chief investment officer of Wealth Consulting Group, which owns shares of Amazon, “it’s a little early to see how this all plays out.” Online, “there’s still good spending.” “While the prices of TVs and some electronics have come down a lot, I don’t know how much the average consumer is going to nibble on these,” he stated.
“A primary focus would be if the daily discounts began to widen,” stated Brian Mulberry, client portfolio manager at Zacks Investment Management, the company that owns stock in Amazon and Walmart.
That being said, he noted that Apple and Amazon are “not having to discount things as much,” suggesting that there may be a healthy level of consumer demand for their products on Cyber Monday.
At noon on Monday, Carol Spieckerman, a retail consultant, stated that “shoppers are all too aware of that the biggest discounts are still ahead.” She cited the low foot traffic on Black Friday—the day after Thanksgiving—as evidence that consumers were exceedingly selective.
Retailers will likely need to offer greater discounts in the coming weeks, according to Charles Sizemore, chief investment officer of Sizemore Capital Management.
Given that labor and input costs have not decreased and consumers are still picky, this worries him about profit margins. During the holiday season, “I really think margins are going to be depressed,” stated Sizemore, whose firm owns roughly $2 million worth of shares in both Walmart and Target.
Monday’s last-minute shoppers may spend $4 billion between 6 and 11 p.m. ET alone, according to Adobe Digital Insights lead analyst Vivek Pandya. “Consumers are going to be concerned about discounts weakening after that,” he stated.
Cyber Monday deals were first advertised by Amazon on Saturday. The deals included savings of up to 46% on select Instant Pot appliances, 37% off select Vitamix blenders, and 35% off Amazon devices, which included a 55-inch Amazon Fire TV.
Walmart slashed prices on Sunday night, following the trend of retailers offering early discounts on major shopping days in an effort to gain market share. Walmart increased its Black Friday clothing discounts to 60% on Monday, from the previous 50%.
With qualifying purchases, Apple offered Apple Gift Cards worth up to $200.
