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Yesterday, Amazon (AMZN) stock rose, rebounding 7.03% and closing at $1807.84. However, the positive movement did not last long, and in the premarket today, Amazon stock was down again. It was trading at $1,725.00, $82.84 (or 4.58%) lower.
While big companies are closing their offices all over the world, Amazon.com Inc (NASDAQ: AMZN) is recruiting people. Notably, the hiring process has become a necessity due to coronavirus. As people are now afraid of going outside, the number of orders for home delivery has increased several-fold. To handle the endless flood of orders, Amazon is hiring 100,000 employees. In addition, the retailing giant is also raising existing workers’ pay by $2 an hour. According to Amazon senior vice president Dave Clark, the total new investment is $350 million. As a result of these announcements, Amazon stock rose yesterday.
On March 16, Amazon (AMZN) stock fell below $1,700 for the first time in a year. Besides, it collapsed nearly 25% over the last month. Yesterday, Amazon stock rose, rebounding 7.03% and closing at $1807.84. However, the positive movement did not last long, and in pre-market today, Amazon stock was down again. It was trading at $1,725.00, $82.84 (or 4.58%) lower.
At the moment of writing, Amazon shares are trading at $1747.85.
Amazon’s Measures to Deal with Coronavirus
As we have already mentioned, the retailing giant is hiring new employees to process orders. Moreover, Amazon is making more room on its warehouse shelves for essential goods such as household and medical supplies to meet the demand that has already significantly grown.
The company said that some deliveries will take more time.
Amazon spokesperson stated:
“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.”
The company said:
“We’re working closely with our sellers to prioritize the shipment of and delivery of needed supplies, medical supplies, household goods and the like. We’re taking that action now in our fulfillment centers to create that prioritization, and we’re working directly with our suppliers for Amazon retail, Amazon inventory to do the same. Obviously, there’s a great demand for these products and we want to make sure customers get them.”
Amazon is also introducing a new rule for third-party sellers, which make up nearly 60% of the Amazon marketplace. Now they can choose to use Amazon’s distribution network instead of shipping goods out themselves. In this case, they send goods to an Amazon warehouse, from where they are delivered to customers.
The company will also provide financial support to workers. The Amazon Relief Fund, established with a contribution of $25 million, will help seasonal workers, drivers and others in financial distress. Applicants can apply for grants starting at $400 and reaching up to $5,000.