Additionally, the same survey also showed nearly nine out of 10 people spend the same amount or more than the amount of the gift card they received, while the rest may never entirely use the balance. Indeed, analysts have long backed up this principle, observing people on average spend between 25% and 50% more at any given retail destination than the face value of their gift card.
Foolish final thoughts
Because this social gift card system should serve to increase those face values that much more, it should boost Amazon.com, Inc. (NASDAQ:AMZN)’s top and bottom lines nicely going forward as more people embrace the everyday utility of social media sites like Facebook Inc (NASDAQ:FB). In the end, count this as yet another reason investors can be happy to own Amazon stock over the long haul.
The article Amazon Stock: Why “Amazon Birthday Gift” Is a Brilliant Move originally appeared on Fool.com and is written by Steve Symington.
Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com and Facebook.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.