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AMAZON: employees strike vs AWS
Against the tide
Amazon’s stock price is one of the few examples when a company gains value in the time of crisis when all the rest are hardly recovering their previous splendor. After meeting the virus at $2,190 per share, Amazon now trades at $2,460, which is a 12% rise. Announcing a hiring spree for 75,000 new employees is another factor that makes it stand out of the crown. So all seems quite optimistic for Amazon. Or is it?
Behind the frontlines, Amazon employees are expressing their concern with the level of virus protection the company appears to provide. Repeated discontent has been reported in numerous news releases lately. According to the most recent ones, Amazon workers are planning to go for a nation-wide strike this week to demand more sanitation and virus protection measures, including temporary closure of some of the warehouses for cleaning purposes. So far, there has been no disruption to Amazon’s operations because of these processes. However, if the dissatisfaction among the people grows stronger, Amazon’s outstanding performance in the stock market may be tarnished.
On April 30, at 21:30 MT time, Amazon will be reporting its earnings in Q1 2020. Although the picture is expected to be good, there is something that investors will be looking for specifically – the performance of the AWS (Amazon Web Services). Right, not the EPS, which would be a default performance metric, but the revenue of this particular business. AWS is the largest global provider of cloud computing services, and it has been the backbone of Amazon’s spectacular growth in 2020, well reflected by the stock price surging to its’ pre-virus heights. Therefore, if this indicator, along with others, brings some good news to the audience, it is fair to expect the share value to rise back to $2,400 and aim at $2,500 in the mid-term – if the employee strikes do not stand in the way of that flight.
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The Reserve Bank of New Zealand will hold a meeting on Wednesday, April 14, at 05:00 MT.