Sub Adds, School Shopping Help Drive $1.6 Billion Amazon Prime Day, Says Analyst

Wedbush Securities maintained an “outperform” rating on Amazon Tuesday on “substantial earnings growth, tempered somewhat by spending on new initiatives.” In a research note to investors before Amazon’s Thursday quarterly earnings report, analyst Michael Pachter estimated this month's Prime Day revenue at more than $1.6 billion, vs. $1 billion last year, driven by higher Prime subscription adds, back-to-school sales and voice-activated shopping. Wedbush projects Q3 revenue of $40.54 billion vs. $39.93 billion in the year-ago quarter.