Amazon could buy a company like Zoom or Slack and replace its Chime app. Such an acquisition can help Amazon immediately increase its user base and at the same time focus on infrastructure. AMZN shares are on the rise in the pre-market.
The title Amazon.com Inc (NASDAQ: AMZN) has performed well for several days in a row since last Thursday. Then it traded at $ 1,920.20. Friday’s shares of Amazon were up before the trade and continued to climb during the trading session and closed slightly down at $ 1,906.59. Today, in pre-market trading, the Amazon title (AMZM) is also up 2.80%, to $ 1,959.90 at the time of writing. At the same time, Amazon can make changes to its Chime app.
The Amazon upgrade followed major announcements from the company. First, New York lawmakers sent a letter to Jeff Bezos with a request to provide more protection for workers who continue to come to work during the coronavirus pandemic. The retail giant responded immediately, introducing stricter sanitation measures and mandatory 14-day paid quarantines for employees tested positive for COVID-19.
Second, Amazon has already hired 80,000 new employees to meet the growing demand for certain product categories and plans to hire more. This is a timely decision given the incredible unemployment rate in the United States.
In addition, Amazon is the leading online retailer, whose customer loyalty is particularly felt now, in times of difficult coronavirus. Before the COVID-19 epidemic, the Amazon stock (AMZN) was stuck in a long phase, moving only laterally. Investors seemed suspicious of the large investments and market pressures facing the e-commerce giant. But the virus has changed everything. As the Americans suddenly became homebound, a new demand for household and home office supplies created bottlenecks and shortages.
It is wrong to say that Amazon’s stock is stable now. But it still catches the attention of investors and is considered one of the best stocks to buy now by some experts.
Amazon Web Services to replace its Chime app
Due to the global quarantine, video conferencing and chat applications like Zoom and Slack are at the peak of their popularity. For example, Zoom’s user base has grown from an average of 10 million daily users to 200 million in just three months. This boom has helped Zoom stocks more than double this year. Recently, Zoom encountered privacy concerns because hackers of Zoom Bombing attacked its video conferencing service. Therefore, his position is currently under question.
And it’s the perfect time for Amazon to come out. The Chime application from Amazon Web Services, rival of Zoom and Slack, is quite unpopular. Some analysts believe that Amazon could buy a company like Zoom or Slack and improve the situation. Such an acquisition could help Amazon immediately increase its user base and at the same time focus on infrastructure.
Futurum Research analyst Daniel Newman said:
“Over the years, AWS has flirted with the idea of reinstalling the battery. They built platforms, but when it comes to [software], they are indescribable. “
As Newman thinks, Amazon could make small acquisitions to come up with something big and meaningful later.
Daria is an economics student interested in the development of modern technologies. She is impatient to know as much as possible about cryptos because she thinks they can change our vision of finance and the world in general.