Online giant Amazon has postponed its popular shopping event Prime Day, as the pandemic has slowed down the company’s supply chain, reducing its capacity to offer compelling deals.
The company said in a statement on Tuesday that it will provide “more details soon” on the rescheduling of the event, an important day for both Amazon shoppers and sellers, as the latter derives a significant volume of their annual sales from the event. The event is usually held in mid-July in the US.
Amazon reportedly told its third-party sellers that they could prepare their inventories for the week of 5 October, though that date is yet to be confirmed.
“This year we’ll be holding Prime Day later than usual while ensuring the safety of our employees and supporting our customers and selling partners”, said a spokesperson for the company.
Analysts, shoppers, and sellers were all expecting this delay, as the pandemic has disrupted the company’s logistics by reducing the speed of its deliveries, while the company has also struggled to keep up with the increased demand coming from users who stayed at home during the pandemic.
Amazon (AMZN) shares jumped yesterday after receiving several price targets boosts, especially one from Goldman Sachs that sees the stock jumping to $3,800 over next 12-month as the company stands to benefit from another potential wave of lockdowns in the US amid a spike in virus cases in the North American country.
Shares closed 7.9% higher at $3,196.8, while they are gaining 1.7% in pre-market stock trading activity as positive sentiment continues to fuel investors’ appetite for the online retailer stock.
Amazon is expected to report its quarterly results for the second quarter next week Thursday with both analysts and investors eager to see how the company’s performance will fare against these high expectations.
Meanwhile, the company continues to act as a force of nature, driving broad market indexes to higher highs, as Amazon’s massive $1.6trn market capitalization has pushed the company to account for roughly 2% of the S&P 500 and the Nasdaq 100, which means that any major price movement of the stock ends up broadly influencing these markets.