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As Amazon predicts, its Q1 2020 net sales will rise by a range of 16% and 22% to hit $73 billion. In addition, the company has boasted more members already joined its subscription program. AMZN stock is rising in the pre-market.
On Friday, Amazon.com Inc (NASDAQ: AMZN) stock succumbed to the downward movement of the whole market and tanked 2.83% to close at $1900.10. Today, as the pre-market trading has started, Amazon stock rises. The 0.79% jump allows the retailer’s shares to trade at $1,915.04 at the moment of writing.
Amazon (AMZN) stock is one of the top tech stocks now. Over the last three years, the company has sufficiently grown earnings per share (EPS). Over twelve months, this growth made up 13%, from $20.68 to $23.46. Further, the company has $55 billion in cash and cash equivalents which covers its long-term liabilities. Amazon’s free cash flow to equity is estimated to exceed $48 billion this year. In other words, Amazon is far from a liquidity crunch in case the debt market tightens in 2020.
As the company is predicting, the first quarter of 2020 net sales will rise by a range of 16% and 22% to hit $73 billion. In addition, the company has boasted more members already joined its subscription program, prime, and even more are expected in the near future. Now investors are waiting for the Q1 2020 report.
Amazon is one of FAANG stocks (top tech stocks that include Facebook Inc (NASDAQ: FB), Apple Inc (NASDAQ: AAPL), Amazon, Netflix Inc (NASDAQ: NFLX), and Alphabet Inc (NASDAQ: GOOGL). Right now many are wondering which of them is worth buying and compare Amazon and Facebook. Amazon stock rises but Facebook does not fall behind and adds 0.38% in the pre-market trading to reach $157.39. However, the social media giant has recently complained about its weakening ads business. In particular, it is suffering mainly in countries where actions against COVID-19 are the most drastic.
Amazon and Coronavirus
Amazon also seems to be a winner in the given virus situation. As a result of the coronavirus outbreak, it sees an increasing demand for some goods and a splash of deliveries. To handle this increase, the company has decided to open 100,000 new full and part-time positions across the U.S. Besides, Amazon will increase the salary to its employees. The company will be adding an additional $2 per hour worked through April from our current rate of $15/hour or more, depending on the region, C$2 in Canada, £2 per hour in the UK, and approximately €2 per hour in many EU countries.
Other measures taken by Amazon to combat coronavirus. It has temporarily closed some sites, such as the Queens location, strengthened its sanitizing measures, and teamed up with the Gates Foundation to deliver and pick-up at-home coronavirus test kits. Through its program Amazon Care, the company is helping with the logistics and delivery of the testing kits.