Amazon stocks (AMZN) seem rather attractive to investors these days. The main reason is the tenacity it has shown in combating the effect of coronaviruses on the market.
As a long-term investor, when the market indicates a mode of recession, this is the best time to research the stock market purchase. Amazon.com Inc (NASDAQ: AMZN), an American multinational technology company based in Seattle, is an example that resists the urge to comply with the effect of the coronavirus on the stock market, and as investors, you should take a closer look at his purse. Most of the benchmark stock markets like the S&P 500, the Dow Jones and even the Nasdaq have all been in red since the end of the calendar.
Understand basic Amazon operations (AMZN)
Amazon mainly focuses on e-commerce, cloud computing, digital streaming and also on artificial intelligence. No wonder AMZN stocks remain afloat in these difficult times when most investors are selling their stocks to flee volatile and risky markets. With the many companies on which to rely, Amazon was able to bypass the effect of the coronavirus and simply escaped free fall.
Amazon has invested heavily in its delivery system to offer customers one day delivery time after ordering. This resulted in the purchase of most of the products and, as a result, the company’s stock-out. To counter this, the company has announced that it will add 100,000 additional part-time and full-time employees to its business.
In order to compete with other outlets with similar companies like Walmart, the company injected more than $ 350 billion in order to increase its salary increase by $ 2 to its employees in order processing, stores and transportation by April.
Amazon Basics (AMZN) Stock in the Middle of Coronavirus
In order to answer the question, if the Amazon stock market is immune to coronaviruses, here are some other things that can help you get a clear answer on this. Amazon, as a business, has increased its employees worldwide and has also increased their pay rates by around 11%. This increase is in addition to the $ 3.3 billion in fourth quarter net profit.
Even though the coronavirus continues to depress the stock markets, Amazon has had positive news in recent times. In a recent announcement, the company said more people had joined its Prime subscription program than in previous quarters. Amazon is expected to release a top earnings report in the coming quarters.
The company predicted that net sales in the first quarter of 2020 would increase 16% and 22% to $ 73 billion. Following the good news, the stock market has fallen by around 2% since the calendar reversal. This is a very promising value compared to other stock markets which have almost offset all of the gains made so far this year.
At the close on Friday, the AMZN share was trading at $ 1,846.09, which indicates a decline of 1.85%.
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