Amazon became the stock king in the middle of the Covid-19 season
When the sell-offs took place in the last month, Amazon was still a relatively safe haven due to the effects of the Covid-19 pandemic.
Even as the economy is almost certain to decline and the number of unemployed is expected to spike, consumers are still flocking to Amazon to buy essential health and household products. Last week, Amazon said the company is hiring an additional 100,000 full-time and part-time employees in the United States to handle warehousing and delivery jobs to meet the soaring demand from online shopping in the meantime. Covid-19 translation occurred. The world’s largest e-commerce firm is also raising wages and providing some extra benefits to retain employees.
In an effort to avoid the spread of the Covid-19 virus, many companies are forced to make rules that require employees to work from home. This adds to the dependency on the technology infrastructure provided by Amazon Web Services (AWS), the most widely used comprehensive cloud computing platform, providing more than 175 full featured services. Power from data centers around the world. Popular home-based applications like Slack and Zoom also depend at least partly on AWS to maintain service. So far, the ability to provide almost everything that individual consumers and businesses need is something that not all tech giants can match with Amazon.
According to CNBC, since the US stock market peaked on February 19, Amazon’s stock price has dropped by 11% so far. Normally, the loss of more than US $ 100 billion in market value in such a short period of time would be catastrophic. However, during the same five-week period, the S&P 500 index fell by 28%, and each of the other major US technology firms in particular dropped by at least 20%. Thus, Amazon stock is still a relatively safe haven due to the impacts of the Covid-19 pandemic.
“We expect traffic on Amazon to increase as more businesses temporarily shut down or switch to online operations, and more and more consumers are forced to stay indoors to avoid viral infections”.
US stocks rebounded on March 24, but the blue-chip stock index used to track trading activities of leading public companies’ stocks still fell nearly 30%.