This past Tuesday Amazon’s (NASDAQ: AMZN) stock hit a new all-time high, which may seem a little odd considering what has been going on in the markets and with the world. The coronavirus pandemic has shut down nearly the entire U.S. and the world, but it has done the opposite for Amazon and its business.
Now with everyone stuck at home for over a month and maybe even longer, Amazon has become the go-to resource from groceries to activities to stay entertained while stuck indoors. Unlike other businesses throughout the country, Amazon is still open, and it’s reaping the rewards from being a resource to millions of people with nowhere to go.
Amazon stock was trading around $2,242 on Tuesday morning. That was a 3% increase from its previous close. Back in February, its stock reached an all-time high and closed out at $2,170.22 per share. Its market cap is now over more than $1.1 trillion. Amazon is in a position that allows it to prosper while other businesses wonder if they’ll open up when all of this is over.
This rush for Amazon might have even put the company in a position where it’s busier than during the holiday season. Amazon announced that it plans to hire 175,000 or more warehouse and delivery workers so it can keep up with the growing demand during this pandemic. Americans have relied on Amazon for its delivery services and to meet their needs.
Some people probably used Amazon before and maybe even had a prime membership before, but maybe they didn’t rely on it for things like its groceries before and depending on that experience could make lifelong customers. Loyalty to its customers and quickly delivering items is what Amazon is focused on.
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When the time comes and Americans are given the “all clear” to emerge back into the public, it will be a slow start back into society. Meaning people will still rely on Amazon for necessities. Amazon will continue to reap those benefits until people feel safe to be out in large gathering places like grocery stores and shopping centers.
However, there has been some backlash towards the company. That backlash is coming from Amazon’s employees. You know the ones who are delivering its products and risking their health for those items that people are ordering. Warehouse workers have protested conditions and Amazon’s facilities and continue to demand better protection against COVID-19. Which seems like a simple and logical request. Especially for Amazon to continue to keep up with the demand, it’s experience.
Instead, the company fired one protest organizer, Chris Smalls. Amazon said that the worker broke social distancing guidelines and that he refused to stay in quarantine after being in contact with an associate who had tested positive for COVID-19.
The protest and former worker, Chris Smalls said:
Amazon would rather fire workers than face up to its total failure to do what it should to keep us, our families, and our communities safe.
This makes Amazon seem very greedy. And when the company should maintain a reputation favorable to the public. The company isn’t invincible and needs to take its employees and conditions seriously.
On Monday, it was announced that the company had fired three more workers who spoke out against the company. Amazon has confirmed these firings and spoke out about how these firings were caused by the employees’ inability to understand the company’s policies.
If more of this publicity comes out about Amazon, it could be unsavory for the company and change how people view the company. It could create some serious backlash that could impact the company.
Until next time,
Jennifer Clark
Pro Trader Today