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An Amazon spokesperson said online shopping has surged as coronavirus spreads, and it is out of stock on some household staples and medical supplies. AMZN stock is moving higher.
Amazon.com Inc (NASDAQ: AMZN) seems to be an interesting choice nowadays. Recently it has been upgraded to a Zacks Rank #2 (Buy). That means that it is expected earnings to rise and, therefore, stock price as well. At the time of writing at 5:27 am ET in premarket the stock was rising by 1.58% to $1,859. Yesterday, Amazin (AMZN) closed at $1,830 (+1.23%).
For Amazon, rising earnings estimates and the constant rating upgrade mean that the company is getting better in its main business. Exactly that fact should push the stock higher.
Zacks expects Amazon (AMZN) to earn $27.61 per share for the fiscal year ending December 2020, which represents a year-over-year change of 20%. During the last three months, the Zacks Consensus Estimate for the company has increased by 4.2%.
Amazon (AMZN) Prepared Itself for Heavy Times to Come
When we look at the happenings during the last three months we are more than aware of the market plunge happening due to the rapid spread of COVID-19. Consumers are panicking, spending money on non-durable goods while governments are encouraging them to stay home and distance from others.
Well, even though that means pretty much of doom for the service sector as we know it, companies as Amazon are perfect to succeed by offering essential services to consumers that are isolating themselves at home. Amazon Web Services became a literal backbone for key telecommuting services, which have seen increased demand as schools tell students to stay off campus and companies ask their workers to work from home as much as possible.
After learning or working (whether is at home or in the office/classroom it is always exhausting), people want to relax, watch something on TV. Amazon has a solution for that too. Your laptop charger broke – do not worry because – Amazon. Even though it sounds like a commercial, the truth is that those kinds of companies successfully prepared themselves for times to come.
Slamming Sellers Who Priced Items Too High
After last week when the World Health Organization declared the coronavirus a pandemic, consumers avalanched to grocery stores buying dozens of toilet paper roles, cans, milk, potato, pasta, etc.
But, of course, not everyone was just panicking and buying this because of the possible apocalyptic scenarios in their heads. Some decided to make a profit on other people’s panic and decided to buy everything and then – sell it. With much higher prices, of course. However, Amazon decided to slam those “sellers” and removed every blow-priced item on its pages.
An Amazon spokesperson said online shopping has surged as coronavirus spreads, and it is out of stock on some household staples and medical supplies. On Saturday, the company said some shipment times could be longer than usual.
The spokesperson said:
“With this in mind, we are temporarily prioritizing household staples, medical supplies and other high-demand products coming into our fulfillment centers so we can more quickly receive, restock and ship these products to customers.”
Great Place to Capitalize from Online Trade
According to a survey conducted at the end of February, 32.7% of consumers were avoiding shops in general with 52.7% of respondents saying they’d avoid shops if the outbreak got worse, which it most certainly has over the last two weeks.
Amazon is now in a great place to capitalize on a shift from in-store purchases to online. The company is able to deliver many shelf-stable grocery items directly from a warehouse, improving broad availability and its ability to restock quickly.
Also, it is expected that the company sees increased demand for computing, storage, content delivery, and security as more work goes from in-office to online. And while it’s faced a step up in competition over the last few years, Amazon’s still the market leader – particularly in areas where it doesn’t compete directly with its customers (like retail).
First Covid-19 Case in U.S. Warehouses
However, even Amazon isn’t immune to coronavirus. Today the company revealed an employee working at one of its Queens, New York shipping facilities has contracted Covid-19, the first infection reported in a U.S. delivery network that’s become a lifeline of essentials for consumers sheltering at home. Amazon closed the warehouse and sent workers home with full pay so it can be cleaned and sanitized.