- Amazon stock has hit a new all-time high as demand surges.
- Online shopping is getting more popular because of the pandemic.
- AMZN is getting expensive, but don’t think its upside potential has vanished.
On Tuesday, Amazon stock hit a new all-time high. The stock soared roughly 5% to go slightly over $ 2,
The unprecedented health crisis we are facing will likely change consumption habits long after the coronavirus pandemic is over. It will probably take months for people to feel comfortable returning to large gathering places like grocery stores and shopping malls.
Amazon is in an enviable position to take advantage of these changes in shopping habits. People are turning to online shopping to meet their needs as stores are closed.
As a recent Jefferies survey revealed , Amazon is the only retailer among the major e-commerce companies the Wall Street firm covers (including eBay, Chewy, and Etsy) where customers are spending more ) money since the coronavirus outbreak began.
the E-Commerce Company is struggling to keep up with demand
A record . 8 million Americans have sought jobless aid in the past three weeks. And Amazon is one of the rare companies to hire workers amid the pandemic.
The retail giant has Announced plans to hire , (new employees
over the past month, bringing its entire workforce to 1164, . There were only , Amazon employees in 2020.
This influx of workers in its distribution and delivery centers will allow the company to deliver essential – and non-essential – supplies to a nation paralyzed by the coronavirus.
While the higher demand is increasing sales, Amazon is struggling to keep up With the growing demand for its online shopping service. The company has temporarily stopped accepting new grocery customers, while Prime subscribers have complained about infuriating shipping delays.
Amazon said in a blog post that it recently increased order capacity by % in the past few weeks and is adding more.
Amazon Stock Is Getting Expensive – But It Still Has Upside
Amazon shares have soared nearly 47% year-to-date. With a P / E of and a five-year PEG of 1. , shares are expensive.
Yet of the 78 analyst recommendations tracked by Yahoo Finance ,
(Analysts anticipate an average of $) billion in revenue in () against $ (.5 billion in
, an increase of (%).
Demand will likely continue to be high post-coronavirus, but investors should expect that some customers might prefer to go back to brick-and-mortar stores.
So the stock price should continue to rise, but it will likely be at a slower pace.
Disclaimer: This article represents the author’s opinion and should not be considered investment or trading advice from CCN.com.
This article was edited by Josiah Wilmoth
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