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Retail customers have been buying more stocks for essential items amidst the rise in coronavirus spread as several cities have announced lockdown. Giants like Amazon are hiring more employees. AMZN stock price is rising.
While the broader markets were down on Monday, Amazon.com Inc (NASDAQ: AMZN) stock decided to go against the flow. On Monday, the Amazon stock price surged 126 points or 6.17% to trade at $2168 levels. With this Amazon has once again entered the trillion-dollar club with its market cap of $1.08 trillion. In the pre-market, Amazon (AMZN) stock is 0.61% up.
Well, what’s getting the ball rolling for amazon at this time? As per The Wall Street Journal report, Amazon is currently seeing a massive surge in demand for its services amidst the lockdown period. The publication reported that Amazon is allowing third-party sellers to sell non-essential items on its website. Thus, the sellers can send those items to the Amazon warehouse for delivery.
One of the Amazon spokespeople said that things should get back to normal later this week. He further added:
“Products will be limited by quantity to enable us to continue prioritizing products and protecting employees, while also ensuring most selling partners can ship goods into our facilities.”
Amazon Goes On a Hiring Spree while AMZN Stock Is Rising
The e-commerce giant is currently on a hiring spree with the constantly rising demand. To handle the spike in delivery, last month Amazon hired 100,000 warehouse and delivery workers. Now the latest report suggests that Amazon might be hiring an additional 75,000 more employees.
This will be a much big breather to the American job market which has been reeling under the pressure of heavy unemployment. Nearly 17 million jobs have been lost over the last few weeks as the U.S. economy goes on a tailspin.
As a result, Amazon will be investing an additional $500 million more on payroll increases. Amazon has also said that its prime focus currently is on increasing the capacity for grocery delivery from Whole Foods and Amazon Fresh. Besides, it is also working on increasing deliveries for medical supplies.
With the coronavirus pandemic getting more intense over the last month, buyers are purchasing daily essentials in a massive quantity. As a result, online and offline retail outlets are witnessing a solid surge. Amazon is not alone in this game. Recently, the retail giant Walmart also said that it will be hiring more employees to meet the rising consumer demand.