Motley Fool Australia

Why the Buddy (ASX:BUD) share price is up today

Image source: Getty Images

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.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Amazon. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Related Articles…