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Anusuya Lahiri

China's Lockdown Of Tech Hubs To Hamper Amazon, Walmart's Online Delivery: Report

  • China's recent lockdown looks to hamper the online order delivery of global e-commerce firms like Inc (NASDAQ:AMZN) and Walmart Inc (NYSE: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 (NASDAQ:AAPL) iPhone production or supply due to the current lockdown situation in China concerning key supplier Hon Hai Precision Industry Co Ltd (OTC: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 (OTC: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.
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