By
Chimamanda U. Martha
March 11th, 2024
Amazon (AMZN) stock price rose to a new all-time high yesterday. Is it a good choice for investors now?
Amazon.com Inc (NASDAQ: AMZN) stock price has risen to new highs. This comes at a time when most of the markets are reeling from the effects of the COVID-19 pandemic. The technology giant has come into focus as the coronavirus situation has caused it to grow exponentially. Sources say that Amazon (AMZN) stock price hit an all-time high on Tuesday.
Amazon (AMZN) Stock Is Making Gains This Year, Hit All-Time High
Stock prices reportedly closed at $2,283.32. This is a 5.28% increase from the previous close. It is also a new high from February’s $2,170.22. Amazon has entered the big league with a $1.1 trillion market capitalization.
It also indicates that Amazon (AMZN) stock is entering the all-weather territory. There could be several reasons for this. Firstly, the stay-at-home restrictions that governments have instituted are causing big problems for many people.
Many non-essential businesses are closed. People need essential supplies. Amazon is filling that gap quite nicely. So much so that the technology giant had had to recently hire up to about 175,000 workers to add to its supply chains.
This is to assist with the surge in demand that Amazon is currently facing. As the situation continues to evolve, the current pattern could become a trend. Many analysts believe that Amazon could go head-to-head with other giants with a significant advantage. The company’s use of technology at such a scale is unprecedented. This will help the technology company to beat the competition in many more ways than one.
One other effect of the movement restrictions has to do with the increase in internet use. everyone now uses the internet for just about everything. This is also pushing the cloud business northward. Amazon’s web services are also making huge gains as more people work remotely. Amazon’s streaming service is not left out of this new emerging trend.
The technology giant has its hand in the streaming pie with other competitors too. This is quite convenient for those who exist within the Amazon ecosystem.
A dedicated user fanbase for Amazon’s services business is certain to emerge from the current situation. This is certainly good news for the shareholders and investors.
Everything Isn’t Rosy
Some who are on Amazon’s workforce feel differently. Sources say that several warehouse workers have protested working conditions. Protests have also been reportedly organized.
The situation has led to the firing of at least one protest organizer. Amazon has defended this decision. The company alleges that the protester broke social distancing rules. It also further alleges that the protester refused to stay in quarantine. This comes after the individual allegedly came in contact with a COVID-19 positive individual.
Chris Smalls who was fired said in a statement:
“Amazon would rather fire workers than face up to its total failure to do what it should to keep us, our families, and our communities safe”.
Two others have been fired for policy violations as well.
Amazon has also attracted the attention of law enforcement due to price exploitation. The Attorney Generals of about 30 U.S. States have written to Amazon about the issue. Amazon has also had to delete about 530,000 offers and counting due to this as well.
Amazon seems to be the right company, in the right place at the right time. what remains yet to be seen is if it can maintain this momentum post-COVID-19.
Then again, to quote Reed Hastings:
“Most entrepreneurial ideas will sound crazy, stupid and uneconomic, and then they’ll turn out to be right”.
That sounds very much like Amazon at the moment.
At the time of filing this report Amazon (AMZN) stock price in the pre-market was $2,255.00 (-1.24%).