Is Amazon (AMZN) stock still the king of the markets? Only time will tell us as the world goes topsy-turvy due to COVID-19.
Amazon.com Inc (NASDAQ: AMZN) stock on a normal day used to be a “must-buy” for many investors. Today, the stock could as well rule the markets. The COVID-19 pandemic has sent markets south to incredibly new lows.
This has created a new paradigm. Top-performing stocks are difficult to spot and the losers are everywhere across the board. The volatility of the markets has made swimming with the sharks to be easier in comparison to stock trading.
At the time of filing this report, Amazon (AMZN) stock price was at $1,900.53 (-2.04%).
Amazon (AMZN) Stock Is Hot Stuff at the Moment
Amazon seems to be one of the few good things happening right now. The U.S. economy (and the world economy as well) going into what may be the worst recessions ever. Jeff Bezos and his team are still smiling to the bank.
Panic buying of essential commodities seems to be fueling this buying spree. This, however, hasn’t dampened buyers’ enthusiasm. The U.S. nationwide shutdown has also led to higher demand for products. Other competitors can’t either cope with the current situation or are shut-down.
Amazon’s recent hirings of about full-time and part-time employees is a strong indication of increased demand. It also shows that there is a higher business for the retailing giant as well. The new hirings are reportedly going to work across Amazon’s value chain. This is in response to the new orders coming in due to the COVID-19 pandemic.
Technology Usage Is on the Rise
On the flip side, Amazon’s technology platforms are facing increased demand as well. Remote workers who are at an all-time high now use Amazon web services one way or the other to achieve their tasks. Zoom and Slack and other popular remote collaboration tools have something to do with Amazon Web Services one way or the other.
Amazon (AMZN) stock has slipped more than $100 billion since the start of the coronavirus crisis. It is still one of the most promising. Many tech analysts reportedly believe that the increase in the demand for remote work among other things will be the driver of growth for Amazon.
The panic purchases and also the shutdown of smaller businesses in the same niche as Amazon also seem to be the core driver of growth at the moment for the technology giant.
Even though there is an imminent stimulus to the American economy, it may not be enough as layoffs in this kind of situation seem to be the order of the day.
The lack of demand across several industries shows the need for innovation to fill the gap created in terms of employment. This will also play out as more companies need to implement cost-cutting measures in the face of an imminent recession.
For now, though, Amazon seems to be the king of the hill and they seem to be making the most of it.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.