Amazon Stock on an Expansion Path
Amazon.com, Inc. (NASDAQ:AMZN) stock has been in the crosshairs of Donald Trump for a long time now, which has had a negative impact on AMZN stock.
Investors have been worried as to the fate of Amazon stock after the president’s inauguration day on January 20. But Amazon CEO Jeff Bezos has just done something which has brought a huge sigh of relief to investors.
On Thursday, Amazon.com, Inc. announced its plans to create more than 100,000 new jobs across the United States over the next 18 months. These will be full-time and full-benefit jobs.
In its press release, Amazon said that the additional 100,000 new jobs would be open to people all over the country, and with different types of experience, education, and skill levels. (Source: “Amazon to Create More Than 100,000 New, Full-Time, Full-Benefit Jobs across the U.S. over the Next 18 Months,” Amazon.com, Inc., January 12, 2017.)
Over the past five years, Amazon.com has created over 150,000 jobs across the country, growing its total workforce from 30,000 employees in 2011 to over 180,000 by 2016. The tremendous growth enjoyed by the company has helped in pushing Amazon stock near the $1,000.00 level.
Amazon said that many of the roles would be in new fulfillment centers that are currently under construction in many states across the country.
Besides creating direct jobs, “Amazon Marketplace” and “Amazon Flex” will continue to provide flexibility to many people who want to start their own businesses or work according to their schedules.
Amazon stock soared past the $800.00 mark on Thursday and posted gains of 1.8%.
The plan to create new jobs is a good move by the company, as Donald Trump has been consistently targeting companies over his election promise of creating jobs in the United States. The President-elect had just warned General Motors Company (NYSE:GM) not to manufacture cars in Mexico. Auto and technology companies have been at the receiving end of Trump’s comments over the issue of outsourcing.
Just a few days back, one of Amazon’s biggest competitors, Alibaba Group Holding Ltd (NYSE:BABA), had also promised to create one million jobs in the U.S. over the next five years. Alibaba CEO Jack Ma met Donald Trump, who had remarked that he had a “great meeting” with the executive chairman.
Jack Ma had discussed with Trump how the company would expand into products like garments, wine, and fruits, and would especially support small businesses. Although AMZN stock has been growing over the years on the back of the strength of the company’s businesses, the future would have added more uncertainty if Jeff Bezos had not done something about these developments.
Creating jobs in high numbers is a great sign, as it indicates that there is lot of scope for Amazon.com, Inc. to grow in the future. This signifies that, despite using extensive technology, there would be a number of areas where the company would need more employees. This is good news for Amazon stock, and this move also takes care of the biggest concern that Donald Trump has.
The company had come under criticism when it had introduced its new store format, “Amazon Go,” last month. The store features the world’s most advanced shopping technology that does not require checkout lines. This raised fears that many jobs would be lost.
However, the latest announcement is a big move forward for the company and one which is bound to bridge the gap between Donald Trump and Jeff Bezos. This should take AMZN stock further up in the coming days.