- 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 E-Commerce Company is struggling to keep up with demand
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.
(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