AMZN Stock Gains 3% in Pre-Market, Amazon May Buy Zoom-like Company to Replace Chime App

UTC by Daria Rud · 3 min read
AMZN Stock Gains 3% in Pre-Market, Amazon May Buy Zoom-like Company to Replace Chime App
Photo: iphonedigital / Flickr

Amazon could buy a company like Zoom or Slack and replace its Chime app. Such an acquisition may help Amazon immediately increase its user base and at the same time focus on infrastructure. AMZN stock is up in the pre-market.

Amazon.com Inc (NASDAQ: AMZN) stock has been showing good performance for several days in a row since last Thursday. Then, it was trading at $1,920.20. On Friday, Amazon stock was up in pre-market and climbed further during the trading session and closed slightly down at $1906.59. Today, in pre-market trading, Amazon (AMZM) stock is also 2.80% up, $1,959.90 at the moment of writing. At the same time, there can be some changes introduced by Amazon in regards to its Chime app.

Amazon stock’s upgrading followed some important announcements by the company. Firstly, the NY legislators sent a letter to Jeff Bezos with a request to ensure more protection for workers who continue to come to work during the coronavirus pandemic. The retailing giant responded immediately, introducing stricter sanitizing measures and mandatory paid 14-day quarantines for employees who test positive for COVID-19.

Secondly, Amazon has already hired 80,000 new employees to handle increasing demand for some categories of goods and is planning to hire more. This is a timely decision, considering an incredible level of unemployment in the U.S.

Furthermore, Amazon is the leading online retailer, customers’ loyalty to which is especially felt now, in hard coronavirus times. Before the COVID-19 outbreak, Amazon (AMZN) stock was stuck in a long phase, moving only sideways. Investors seemed wary about big investments and market pressures facing the e-commerce giant. But the virus changed everything. As Americans suddenly became housebound, a new demand for household and home office supplies created bottlenecks and shortages.

It is wrong to say that Amazon stock is stable now. But it still draws the attention of investors and is considered to be one of the best stocks to buy now by some experts.

Amazon Web Services to Replace Its Chime App

Due to the global quarantine, video conferencing and chat apps like Zoom and Slack are on the peak of popularity. For example, the user base of Zoom has gone from an average of 10 million daily users to 200 million in just three months. This boom helped Zoom shares to more than double this year. Recently, Zoom has faced some privacy issues, as ‘Zoom Bombing’ hackers attacked its video conferencing service. Therefore, its standing is under question now.

And that’s a perfect time for Amazon to come out. Amazon Web Services’ app Chime, Zoom’s and Slack’s rival, is quite unpopular. Some analysts believe Amazon could buy a company like Zoom or Slack and improve the situation. Such an acquisition could help Amazon immediately increase its user base and at the same time focus on infrastructure.

Futurum Research analyst Daniel Newman said:

“AWS over the years has flirted with the idea of going up the stack. They’ve built platforms, but when it comes to [software], they’ve been nondescript.”

As Newman believes, Amazon might make some small acquisitions to get to something big and significant later.

Business News, Deals News, Market News, News, Stocks
Daria Rud
Author Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

Related Articles