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Amazon gets ready for the holiday season

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amazon stock

Amazon’s stocks were down by 3.86% during Friday’s trading session to $115.66. Trouble in the broader market caused shares to trade lower; mainly US unemployment data that lowered expectations of a turnaround in Federal Reserve policy. The current monetary policy would affect consumer spending, so an economic slowdown is likely. 

However, the e-commerce giant is already thinking about the holiday season and what strategies to use to improve its numbers.

First, Amazon announced last Thursday that it will hire 150,000 employees across the United States for full-time, seasonal, and part-time positions. Recently, the company reportedly announced that among its plans is the investment of $10 billion to increase benefits to its workers. Thus, for the holiday season, Amazon will give $3,000 joining bonuses in specific locations and seasonal employees could get full-time positions.

On the other hand, the company is also focusing on enticing its customers and potential new customers. On October 11, an event called “Prime Early Access Sale” will begin. This will be a 2-day global shopping event exclusively for Prime members with a “list of 100 top deals on some of the most popular and giftable items of the season.”

The deals will be available in 15 countries with top products including electronics, apparel, home goods, and subscriptions to Amazon services.

The company stated that at this event there will be “holiday deals, including on must-have brands like Peloton and New Balance, and Amazon’s lowest prices of the year on select products from brands like Caudalie, Murad, and Philips Sonicare.”

Against an economic backdrop with several headwinds, including growing recession fears, this new holiday season deals event could boost Amazon’s sales. 

Regardless of the dips suffered, Wall Street experts are bullish on the largest e-commerce company’s stock. They state that despite an unpredictive geopolitical landscape and a potential recession, Amazon is perfectly positioned to benefit from the digital transformation with margin expansion and revenue acceleration.

Analysts rate Amazon stock with a “strong-buy” rating. The average price target per share stays at $171.94 with an upside potential of 42.93% from current levels.

Do you think that Amazon’s early focus on the holiday season is a good decision? Would you invest in this company?

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