Amazon (AMZN) stock looks rather attractive for investors these days. The main reason for this is the tenacity that it has shown in the fight with the coronavirus effect on the market.
As a long term investor, such times when the market is indicating a recession mode, it is the best time to look for the buy in the stock market. Amazon.com Inc (NASDAQ: AMZN), an American multinational tech company that is based in Seattle, is one example that has been resisting the urge to conforming to the coronavirus effect on the stock market, and as investors, you should look closer to its stock market. Most benchmark stock market like the S&P 500, the Dow Jones, and even the Nasdaq have all been in red for the better part since the calendar flipped.
Understanding Amazon (AMZN) Basic Operations
Amazon primarily focuses on e-commerce, cloud computing, digital streaming and also in artificial intelligence. No wonder AMZN stock keeps afloat in these difficult times when most investors are selling off their stock to flee from the so perceived volatile and risky markets. With the several businesses to rely on, Amazon has been able to circumnavigate the coronavirus effect and merely escaped the free fall.
Amazon has invested heavily in its delivery system to provide its customers with a one-day delivery period after ordering. This has resulted in most products being bought and in turn the company running out of stock. To counter this, the company has announced it will add 100,000 more part-time and full-time employees to its company.
In order to compete with other outlets with similar businesses like Walmart, the company has injected over $350 billion in order to boost its pay rise by $2 to its employees in fulfillment, stores and also transportation by April.
Fundamentals of Amazon (AMZN) Stock amid Coronavirus
In order to answer the question, is Amazon stock market immune to coronavirus, here are more things that may help you get a clear answer on it. Amazon as a company has been expanding its employees worldwide and also rising their pay rate by about 11%. The rise is on top of the $3.3 billion in fourth-quarter net income.
Even as coronavirus continues pushing the stock markets down, Amazon has been having positive news in recent times. In a recent announcement, the company said that more people had joined its subscription program, prime, than previous quarters. Amazon is expected to report a better-earning report in the coming quarters.
The company predicted that the first quarter of 2020 net sales will rise by a range of 16% and 22% to hit $73 billion. As a result of the good news flowing, the company stock market has registered a fall of approximately 2% since the calendar flipped. This is a very promising value in comparison to other stock markets that have almost wiped out all the gains made this year so far.
However, on Friday, at closing, AMZN stock was trading at $1,846.09 which indicates a 1.85% fall.
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