Credit: Shutterstock photoWhatever be the reason, job creation is quite expected from an industry leader such as Amazon.com, Inc.AMZN , one of the world's fastest growing companies with fingers in almost every pie.
Over the last one year, the stock has outperformed the Zacks Internet Commerce industry. It has returned 39.85% compared with the industry's return of 31.81%. The stock was up 1.83% in Thursday's trading.
Other than direct job creation, the company will create business opportunities with Amazon businesses like Marketplace and Amazon Flex.
Supporting the Enormous Growth
The company has added 150,000 employees to its U.S. workforce over the last five years and had 180,000 employees by the end of 2016. The newest addition will mean a whopping 55% increase in the current workforce.
This big addition makes sense as the company prepares to open new fulfillment centers across the nation and continues to invest in logistics, cloud computing and machine learning.
There was a question mark over the company's profitability potential after its third quarter earnings miss that resulted from heavy investments. However, we believe that it is short term in nature. We believe that through these significant investments, Amazon is preparing well in advance for a long-term competitive advantage.
Amazon.com, Inc. Total Expenses (TTM)
Amazon.com, Inc. Total Expenses (TTM) | Amazon.com, Inc. Quote
Smoothening Relations with the White House
Amazon founder and chairman Jeff Bezos and President-elect Donald Trump did not seem to have good relations during the presidential campaign. But things appear to be smoothening after the results as Bezos was among the leading technology industry executives to meet Trump.
The President-elect has urged technology leaders to create and retain jobs within the U.S. Amazon, with a well-timed announcement of such magnitude, joins others such as Alibaba BABA , Ford Motor F and International Business Machines IBM who have already announced their hiring plans.
Currently, Amazon is a Zacks Rank #4 (Sell) stock.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
