Is Amazon’s stock (AMZN) still the king of the markets? Only time will tell when the world is going upside down because of COVID-19.
Shares of Amazon.com Inc (NASDAQ: AMZN) on a normal day were a “must-buy” for many investors. Today, the title could as well dominate the markets. The COVID-19 pandemic has sent markets south at incredibly low levels.
This has created a new paradigm. The best performing stocks are hard to spot and the losers are all over the world. Market volatility has made it easier to swim with sharks than it was to trade stocks.
At the time of this report, the Amazon share price (AMZN) was $ 1,900.53 (-2.04%).
Amazon stock (AMZN) is a hot topic right now
Amazon seems to be one of the few good things happening right now. The US economy (and the global economy as well) is entering what may be the worst recessions of all time. Jeff Bezos and his team are still smiling at the bank.
Panic purchases of essential products seem to fuel this wave of purchases. However, this did not dampen the enthusiasm of buyers. The national closure of the United States has also resulted in increased demand for products. Other competitors cannot cope with the current situation or are closed.
Recent hires from Amazon with roughly full-time and part-time employees clearly indicate an increase in demand. It also shows that there is higher activity for the retail giant. The new hires are expected to work across the Amazon value chain. This is in response to new orders due to the COVID-19 pandemic.
Use of technology is increasing
On the other hand, Amazon’s technology platforms are also facing increased demand. Remote workers who have reached record levels are now using Amazon’s web services in one way or another to accomplish their tasks. Zoom and Slack and other popular remote collaboration tools have something to do with Amazon Web Services one way or the other.
Amazon’s stock (AMZN) has lost more than $ 100 billion since the start of the coronavirus crisis. It is still one of the most promising. Many technology analysts believe that increasing demand for remote work, among other things, will drive Amazon’s growth.
Panic purchases and the closing of small businesses in the same niche as Amazon also seem to be the main growth driver for the tech giant right now.
Even if there is an imminent recovery in the US economy, this may not be enough because layoffs in this type of situation appear to be on the agenda.
The lack of demand in several sectors shows the need for innovation to fill the vacuum created in terms of employment. This will also play out, as more companies must implement cost-cutting measures in the face of an impending recession.
For now, however, Amazon seems to be the king of the hill and they seem to be making the most of it.
Christopher Haruna Hamman is a freelance content developer, crypto enthusiast and tech lover. He is also a content developer for Superstar, Strategy Demigod and Standup Guy.