Amazon stock price hits fresh record highs as it prepares to launch a new luxury fashion platform
- Reports emerged that Amazon is preparing to roll out a luxury brand fashion platform in September
- Amazon intends to spend around $100 million on a marketing campaign that will include film and TV companies
- Amazon stock price reached a new all-time high today at $3,453
Shares of Amazon (NASDAQ: AMZN) printed a fresh all-time high today on reports that the e-commerce giant plans to roll out a luxury brand fashion platform in September.
Fundamental analysis: Challenges ahead
According to a report in Women’s Wear Daily, Amazon is working for a long time on a new platform that will offer an opportunity to a number of European and American brands to present its products online. Accordingly, luxury brands will be enabled to completely customize their virtual stores.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
This way, luxury fashion brands will hope to capitalize on Amazon’s unparalleled network of suppliers. The report adds that the tech giant is already constructing a warehouse in Arizona to support the new platform. An online platform was supposed to launch earlier in 2020, but the COVID-19 outbreak pushed the launch date back to the autumn.
Additionally, Amazon intends to spend around $100 million on a marketing campaign that will include film and television companies. The e-commerce behemoth launched Prime Wardrobe in 2018 and Personal Shopper a year later.
Julie Wainright, the Chief Executive of the online and brick-and-mortar luxury marketplace RealReal, said that her company doesn’t consider Amazon’s future platform as a potential threat and hopes the project will help boost troubled modern brands.
“The contemporary brands need a lot of help and so if it spurs their growth and helps them in this difficult time, I think it’s great for them,” said Julie Wainright, CEO of luxury marketplace RealReal.
“The resale market has always had a different rhythm than the primary market, but clearly we need the primary market to succeed in order for us to have a secondary market, so I really do hope it is most focused on high-end contemporary and they need help and we support that.”
However, there are fears that Amazon will struggle with the new project due to the relationship with its customers. Amazon has a tendency of keeping most of the information about the client to itself.
Technical analysis: Record highs hit
Amazon stock price made successive gains on Tuesday and Wednesday to print a fresh all-time high at $3,453. Once the stock price printed a high of $3,344 in July, the sellers forced a minor pullback that was seen as another opportunity to buy AMZN stock.
This buying wave started another uptrend which has yielded a new high as the buyers approach the 127.2% Fibonacci extension line at $3,468. If this area is cleared, then the next target is $3,630.
Amazon is reportedly preparing to launch a new online platform for luxury fashion brands. This news has helped Amazon share price to reach a new all-time high today.