Amazon (AMZN) stock price is falling as it has become known that the retail giant took a decision to postpone Amazon Prime Day to September.
Amazon.com Inc (NASDAQ: AMZN) stock prices dipped by 2.05% yesterday. This occurred as sources said that Amazon Prime Day was postponed till September. As at the time of filing this report, Amazon (AMZN) stock price was $2,443.37, falling by 0.14%.
Amazon Prime Day offers steep discounts on many products. The tech giant doesn’t normally release the details on revenues generated. Amazon made about $6.1 billion from the sales event last year. The internet retailer sold close to 200 million items during the 48-hour event.
Amazon’s supply chains have come under strain. This happens due to the COVID-19 pandemic that hits many businesses. The company had already indicated in a March blog post that this will occur.
AMZN Stock Dips as Amazon Prime Day Postponed Twice
The event had initially been postponed to August. The company had already indicated that it will absorb a $100 million loss. The recent postponement is aimed at pushing the company’s productions and operations to pre-pandemic levels.
Amazon will be able to handle larger amounts of shipments and deliveries by September.
More often than not, consumers have been turning to online retailers such as Amazon to enable them to get essential goods.
Offline retailers such as JCPenney are bearing the brunt of the COVID-19 pandemic. So much so that the retailer recently filed for bankruptcy. Amazon doesn’t seem to be headed in that direction anytime soon.
Pundits project that Amazon (AMZN) stock price could reach $10,000 soon. A big reason for this will be its entree into the online advertising industry.
Online Advertising Spending Could Play a Big Role in Amazon’s Rise
Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and social networking giant Facebook Inc (NASDAQ: FB) together own about 59% of the industry in the U.S.
This massive control continues to draw attention from the regulators. Government intervention into this control is certain. It is a matter of time. That could be a good thing for Amazon. The Bezos-led company currently accounts for about 8.8% of online spending in the US. This amount is growing and could reach $38 billion by 2023.
Amazon stands a pretty good chance of catching up with the other two. Its advertising business grew by 39% to $14.1 billion. Artificial intelligence and machine learning are huge contributors to this growth. Ad revenues are expected to fall at this time. AWS and allied services will grow during this crisis.
As the pandemic continues, automated shopping may play a pivotal role in business. Amazon Go is one of those concepts that could garner mainstream attention. Statistics show that the average Amazon Go store already generated about $1.5 million in annual sales.
Should the concept go mainstream, we are looking at the rise of the robot cashier.
It points to one fact: Jeff Bezos isn’t resting on his oars. We are seeing the kind of genius that started the Amazon ecosystem on 5th July 1994 is at work again.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.