Amazon surges! Breaks historical record again

Let’s start today’s main text.

Over the past weekend, what impressed everyone most was probably the shocking big positive line in the A-share market.

Many foreign media have predicted that as the epidemic is under control and the economy begins to improve, the A-share market will rebound in a V-shape this year. At the same time, although not as terrible as the A-share market, the US stock market is also rising quietly. As of Monday, the indexes of many US stock trading markets have risen for many days, among which the Nasdaq Composite Index has hit a 26-year high.

Then the U.S. stock market rose, and Amazon's stock, which performed strongly during the epidemic, soared! A single share has exceeded 3,000 US dollars! The total market value has exceeded 1.5 trillion US dollars, setting a new record for the highest market value in the history of U.S. stocks!

What good news has Amazon recently brought about that has caused its stock to soar? To put it bluntly, it is due to the epidemic again.

We have previously analyzed that when U.S. stocks plummeted across the board but Amazon’s stock rose against the trend, the surge in online shopping demand caused by this wave of epidemic was the biggest driving force behind Amazon’s rise.

In fact, since the outbreak of the epidemic in March this year, Amazon's stock price has been rising all the way and has never looked back. As of now, Amazon's stock price has risen by more than 60% compared to January! Compared with the lowest value (1676.98) when the US stock market was continuously circuit-breakered in March, Amazon's stock price has almost doubled!

After the United States began to resume work on a large scale recently, the epidemic rebounded rapidly, and the number of newly confirmed cases per day in the country has returned to the level of March and April when the epidemic was the most serious. The rapid increase in the number of confirmed cases has caused various states in the United States to re-impose some restrictions, and people have once again "withdrawn" from offline physical stores and turned to online shopping.

There have been sharp increases in cases in Texas, Arizona and other areas, and local governments have chosen to re-enable some of the stay-at-home orders, closing gyms, banquet venues, and restaurant dining, while retail, office buildings, and beauty salons are still open. Apple even closed more than 30 offline stores across the country last week.

Multiple pieces of news are indicating that the demand for online shopping will surge again soon, so Amazon’s stock price broke through $3,000 as soon as the U.S. stock market opened this week. This is what capital expects from Amazon’s future business.

Now it seems that we can understand why Amazon leaked the news of Primeday last week and decided to postpone the membership day for another month. If the sales continue to grow at this rate, it will be impossible to get so many orders. The only option is to postpone it for a while and prepare more. Anyway, it cannot be in the same month as Black Friday, so the only option is October.

Although Amazon’s warehouse and shelf delivery are very slow right now, it is working hard to increase its transportation capacity.

In the United States, Amazon uses the Delivery Service Partner Program (DSP) to attract third-party logistics agents to deliver orders to help solve the "last mile" of delivery, so that Amazon itself does not have to bear the high labor and vehicle costs.

This program has supported dozens of small and medium-sized freight companies and absorbed a large number of unemployed people during this year's epidemic, solving their employment problems. It is also the reason why Amazon's delivery time is not as seriously delayed as its warehouses.

Peregrine Express, Rapid Logistics, Systemize Logistics, and other DSP program partners each received at least $1 million in subsidized low-interest loans. Originally, it was difficult for these small and medium-sized enterprises to obtain such a large number of preferential loans, but the relevant institutions fully considered the growth and demand behind Amazon and chose to help these small businesses expand their delivery capabilities.

This wave of Amazon's stock indicates that online demand will continue to grow, which is definitely good news for sellers. In addition, the continued expansion of the DSP plan also guarantees the back-end delivery capacity. As long as sellers can handle the issues of shipping and replenishment in the near future, they will definitely be able to take advantage of this wave of traffic to have a surge in orders!

At present, the transportation of large quantities of goods is not too slow. What is slow is the process of Amazon picking up, warehousing and putting the goods on the shelves after arriving at the port. You can try Amazon's official AGL service, which can effectively reduce the time consumption of these links, and also provides lock-in and advance shelf services.