Amazon (AMZN) stock is building on its postelection rally by notching another record high Wednesday. Shares of the tech giant are rallying as Amazon launched a discount-focused e-commerce service, an answer from the company to the rapid rise of PDD Holdings‘ (PDD) Temu.
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The newly minted Amazon Haul will offer a range of products that the company says will all be priced under $20, with more than half selling for under $10.
The Seattle-based company is rolling the product out in a beta test mode on the Amazon mobile app. The new section of Amazon’s massive e-commerce website comes as Temu has quickly built market share in the U.S. by selling deeply discounted goods directly from merchants in China. PDD is a Chinese company that has located a headquarters in Ireland. Technology news publication The Information reported in June that Amazon was courting merchants in China for a Temu competitor.
Deliveries made through Amazon Haul will take one to two weeks, rather than the two-day shipping standard for other types of orders made by Amazon Prime members. That’s similar to delivery times from Temu. Shipping will also cost $3.99 per order, though the fee is waived for carts of $25 or more.
“Amazon Haul aims to help make shopping for fashion, home, lifestyle, electronics, and other products even more fun, easy, and affordable, all backed by Amazon’s A-to-Z product guarantee so customers can shop with confidence that the products they’re purchasing are safe, authentic, and in the condition expected,” Dharmesh Mehta, Amazon’s vice president of worldwide selling partner services, said in a news release.
Amazon Stock Recent Breakout
On the stock market today, Amazon stock added 2.5% to close at 214.10. That set a record high, ahead of the stock’s 210.05 closing price last Thursday.
Amazon stock pushed just above a buy zone that extends to 211.26 following a breakout from a 201.20 consolidation pattern buy point, according to MarketSurge. Shares broke out on Nov. 6 as part of a broader rally following the election of Donald Trump to a second presidential term.
Amazon topped third-quarter earnings and sales estimates when it reported results on Halloween. Shares have gained 41% year to date.
PDD Holdings stock, meanwhile, lost a fraction to close at 113.41.
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