09:03 AM EST, 11/22/2024 (MT Newswires) -- Amazon.com's ( AMZN ) performance in the ongoing quarter is expected to be strong with the e-commerce giant well positioned to capture market share gains in the key holiday season, Truist Securities said in a Friday client note.

The company made an early start to the season with its Prime Big Deal Days deal event in October, recording the "biggest sales" in the event's history, according to the brokerage. The technology giant is also well-positioned to generate growth over the five-day period between Thanksgiving and Cyber Monday due to "competitive prices" amid a "highly promotional environment," Truist said.

"Various industry sources we track have published sales growth estimates for the holidays and while they vary by source in part due to different calculation methodologies, they are fairly consistent in ecommerce growth at (7% to 9% year over year)," the brokerage wrote in the report.

Amazon ( AMZN ) recently launched its Amazon Haul discount offering, which provides low-cost goods and competes directly with PDD Holdings' North America e-commerce marketplace, Temu. Truist doesn't expect this offering to be material to the company's financials in the near term, but anticipates the service to further expand selection, improve order frequency and drive customer retention over time.

Amazon's ( AMZN ) North America revenue is "tracking slightly" ahead of FactSet's current consensus of $114.5 billion for the fourth quarter and Truist's own estimate of $114.7 billion, the brokerage said.

At the end of October, Amazon ( AMZN ) said it anticipated overall fourth-quarter sales to be in a range of $181.5 billion to $188.5 billion. The Street is looking for revenue of $187.34 billion, while Truist is estimating $187.8 billion.

The brokerage has a buy rating on Amazon's ( AMZN ) stock with a price target of $270. "(Amazon ( AMZN )) is our favorite mega cap going into 2025 as it continues to improve its value proposition for merchants and shoppers, and be one of the best ways to play cloud, AI, digital ads and global logistics," Truist said.