- China's recent lockdown looks to hamper the online order delivery of global e-commerce firms like Amazon.com Inc AMZN and Walmart Inc WMT, Bloomberg reports.
- China had to initiate lockdowns and restrictions in its crucial manufacturing hubs like Shenzhen and Dongguan following a Covid-19 resurgence.
- Related Content: China Restricts Activities In Shenzhen, Shanghai Following Covid-19 Resurgence
- The restrictions caused significant disruption to the production and delivery of goods sold on major online marketplaces.
- The report notes that Shenzhen has pressed the pause key, with operations halted for almost all sectors.
- The Shenzhen Cross-Border E-Commerce Association actively negotiated with the Shenzhen authorities to resume parcel deliveries.
- Meanwhile, Piper Sandler analyst Harsh Kumar saw a limited impact on Apple Inc AAPL iPhone production or supply due to the current lockdown situation in China concerning key supplier Hon Hai Precision Industry Co Ltd HNHPF.
- Kumar kept Overweight and $200 price target (32.8% upside) on Apple.
- BofA analyst Wamsi Mohan said that provided there is not a significantly higher duration of lockdown, Apple and Foxconn Technology Co Ltd FXCOF could relocate production to other areas in the short term. The company's "significant" exposure to Shenzhen and Suzhou should be "manageable," noted Mohan, who reiterated a Buy with a $215 price target (42.7% upside).
- Price Action: AMZN shares closed lower by 2.52% at $2,837.06 on Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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