Amazon (AMZN) Stock: Prime Day Magic Fades as Sign-Up Numbers Disappoint Wall Street

TLDR

Table of Contents

Amazon missed Prime Day sign-up targets with 5.4 million U.S. registrations, down 2% from last year
Company invested $4.4 billion to establish AWS Asia Pacific region in New Zealand with three availability zones
Stock fell 1.12% Friday and continued declining in Tuesday premarket trading
Prime Day generated $24.1 billion in spending but failed to meet internal growth expectations
Prime Invitee Program will end October 1, 2025, removing member benefit sharing feature

Amazon stock took a hit last Friday and continued falling in premarket trading Tuesday as investors digested mixed news about the e-commerce giant’s performance and expansion plans.

The company’s recent Prime Day event failed to meet internal expectations despite generating impressive revenue numbers. Amazon registered 5.4 million U.S. sign-ups over the 21-day period leading up to and including the four-day Prime Day event from July 8-11.

This figure fell short of last year’s total by approximately 116,000 sign-ups. The number also missed Amazon’s internal target by 106,000 registrations, representing roughly a 2% decline for both metrics.

Amazon defended its Prime Day performance in a statement to Reuters. The company claimed it achieved record-breaking sign-ups in the 25 days around Prime Day without providing specific numbers.

Prime Day remains crucial for Amazon’s business model outside the holiday shopping season. The event drove $24.1 billion in online spending, marking a 30% increase from summer 2024.

Prime membership serves as a cornerstone of Amazon’s revenue strategy. Consumer Intelligence Research Partners data shows Prime members spent an average of $1,170 with Amazon in 2024 compared to $570 for non-members.

Cloud Expansion Plans

Amazon Web Services announced a major investment in the Asia-Pacific region Monday. The company committed $4.4 billion to establish the AWS Asia Pacific New Zealand region.

Amazon is set to make a significant investment in New Zealand's digital infrastructure. The tech giant plans to invest over NZ7.5 billion ($4.4 billion) in new data centers via Amazon Web Services (AWS).
This massive investment is projected to create more than 1,000 full-time… pic.twitter.com/W9FxqSkHRC
— Mustafa Kandemir (@financekandemir) September 1, 2025

The new region features three availability zones and will operate under the API name ap-southeast-6. AWS expects the investment to contribute $6.3 billion to New Zealand’s GDP.

The expansion could create 1,000 new jobs annually in New Zealand. Local organizations will benefit from lower latency when running workloads and storing data within the country.

AWS generated $30.87 billion in revenue during the second quarter. The cloud division produced $10.16 billion in operating income for the same period.

Service Changes Coming

Amazon announced the end of its Prime Invitee Program effective October 1, 2025. The program allowed Prime members to share fast, free delivery benefits with non-members.

Competition from Walmart in delivery services and AI technology may have impacted Prime Day performance. President Trump’s tariffs could also be affecting consumer spending patterns.

R.W. Baird analyst Colin Sebastian emphasized Prime’s strategic importance. “People on Prime spend more on Amazon and they are less likely to be enticed by competitors’ offers of lower prices,” he said.

Amazon stock has gained just over 4% this year, trading within a 52-week range of $161.38 to $242.52. The stock closed Friday at $229 after falling 1.12%.

Analysts maintain a consensus price target of $263.18 for Amazon shares. This target implies nearly 15% upside from Friday’s closing price.

Retail sentiment toward Amazon stock remained bearish on Stocktwits Tuesday morning. Message volume stayed at low levels according to the platform’s metrics.

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