The Buddy share price is climbing higher today as the company announced it expects record sales from Amazon’s Prime Day.
The post Why the Buddy (ASX:BUD) share price is up today appeared first on Motley Fool Australia. –
The Buddy Technologies Ltd (ASX: BUD) share price is trading higher after the company announced it was expecting record sales from Amazon Prime Day, 2020. The Buddy share price is currently trading 3.03% higher to a price of 68 cents.
Buddy’s consumer business trades under the LIFX brand and is a provider of smart lighting solutions. The company has a wide portfolio of Wi-Fi enabled lights that are used in nearly 1 million homes and sold in more than 100 countries.
What happened today?
After a brief trading halt this morning, the Buddy share price soared as it announced that US giant Amazon.com, Inc. (NASDAQ: AMZN) had purchased large quantities of its LIFX white smart lights for its Amazon Prime Day. The massive two-day global shopping event is happening in Australia today and tomorrow.
Amazon is launching Prime Day bundle deals that will offer the light free with the purchase of select Alexa devices. This includes the Amazon Echo Dot which has historically been one of the highest selling products across all of Prime Day. The bundle is expected to boost Buddy light sales significantly. The 2019 Prime Day event saw more than 175 million items sold, eclipsing the previous Black Friday and Cyber Monday sales combined.
In a later announcement today, Buddy advised that Amazon had ordered approximately 1 million LIFX smart lights to support its Prime Day and holiday sales events.
What now for the Buddy share price
Bundling of Buddy LIFX lights with Amazon products offers a huge market opportunity for the light company. Its product will now be marketed to millions of Prime members worldwide. Furthermore, the company has confidence that it will see record sales over the duration of this sales event. The Buddy share price is currently sitting at 68 cents having risen 73% so far this year.
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