Let’s talk crypto, Metaverse, NFTs, CeDeFi, and Stocks, and focus on multi-chain as the future of blockchain technology. Haha, Take it easy. Let us all WIN!
Amazon (AMZN) stock closed yesterday with $33.46 on top to trade at $2351.26. Does Jeff Bezos want to turn Amazon into a delivery machine that competes with FedEx and UPS?
Amazon.com Inc (NASDAQ: AMZN) stock pushes higher in a bid to set a new all-time high amid the life disruption caused the Covid-19 pandemic. As the market closed on May 6, 4.52 pm EDT, the shares were trading $33.46 higher than the price they opened the day at. AMZN closed yesterday at $2,351.26. Today it is nearly 1% in the pre-market. The company managed by Jeff Bezos continues innovating ways to deliver the high rate orders it’s getting from its customers.
Its market has been calm after hours as the shares have not added nor dropped from the figure it closed at. However, it remains a favorite to many who yearn to earn extra cash amid the pandemic. As a result, Amazon CEO Jeff Bezos continues adding to his fortune, which rose by $308 billion since the beginning of the pandemic.
Amazon (AMZN) Stock amid Covid-19 Pandemic
The company reported an overall increased revenue, which reached $75.4 billion in the first quarter. The figure is 26% higher than the one reported at the same time the prior year. In regards to Q2 sales guidance, the company estimates to hit between $75 and $81 billion.
Amazon shares will continue reaping huge from the Amazon Web Services that proved its dominance in the first quarter. AWS revenue topped $10 billion for the first time, after rising 33% on a year-over-year basis.
However, its cloud business, which is a giant in the market, from other competitors like Microsoft Corporation (NASDAQ: MSFT). In a bid to fight the coronavirus crisis, Bezos said the company is planning to spend $4 billion. The figure will be almost equal to what the company will make in profit for the next quarter.
Amazon Expanding: Will Bezos Turn It into a Competitor to FedEx?
The Amazon and U.S. Postal service relationship has been marred with political push and pull in recent years, whereby president Donald Trump has demanded USPS to up its rates on the megaretailer. According to experts, Amazon has been reaping huge from the low rates offered by USPS.
This was stumped by a 2017 analysis from Citi, which said USPS undercharged package customers like Amazon by $1.46 per package. In a bid to counter the challenge, Amazon is now its own delivery company.
It is now able to deliver packages from its warehouses and drop off at customers’ homes. The network has grown over time to see the company deliver non-amazon packages too. As a result, it will deny USPS, UPS, FedEx billions of revenue.
According to Morgan Stanley, it is estimated that Amazon would carry $3.5 billion outside parcels in its network. In the final package mile, Amazon delivers about 46% of its own, with USPS delivering about 30% while UPS delivered 17% on average in the past nine years.