Market Overview

Amazon Physically Expands Following Kindle Introductions

Amazon Physically Expands Following Kindle Introductions

Following a highly publicized press conference on Thursday afternoon in which Amazon (NASDAQ: AMZN) revealed a new line of Kindle devices, the company delivered more good news to the American public. Amazon will create 2,000 new jobs once the online retailer opens up three more distribution centers.

While details have yet to be revealed about the distribution centers themselves, The Independent reports that new employees will be placed in computing, management and human resources positions. Along with these permanent jobs, Amazon will also hire up to 3,000 seasonal workers for the holiday period.

The company will need all the hands it can get, as the unveiling of products like the Kindle Fire HD and a 4G LTE tablet will keep workers busy throughout the 2012 holiday season. In order to compete against Apple (NASDAQ: AAPL) and Google (NASDAQ: GOOG), Amazon will need all hands on deck to begin sending out orders throughout the autumn months (two 7-inch Kindle tablets will ship on September 14, while the other aforementioned tablets will be released on November 20).

"We. Love. To invent. We love to pioneer," Amazon Chief Executive Officer Jeff Bezos said at Thursday's event, noting that people no longer desire gadgets, but that they want constantly evolving services.

While Amazon strives to do just that, (the company announced a new Amazon Prime deal that sent Netflix (NASDAQ: NFLX) shares into a tailspin on Tuesday), Bezos could be hinting at even further improvements just around the corner.

Amazon's new distribution centers could potentially offer same-day shipping, much like speedy competitor eBay (NASDAQ: EBAY) began doing in the beginning of August. If this were to be true, Amazon stands to monopolize not only a portion of the tech industry, but the online retail shipping industry as well.

With not a drop of bad news tainting the water from which Amazon has seemingly been reborn, shares are on the rise. The company closed Thursday at $251.38, up over 2 percent for the day. Friday, Amazon is already up almost another one percent in pre-market trading.

Along with boosting investor confidence, Amazon also managed to spark assurance in analysts at Bank of America, as the research firm replaced its $264 price objective on the company with $281.

"Amazon is set up well into 4Q; a play on our mobile marketplace theme and should see accelerating growth in 4Q. We also believe positive Street views on a growing distribution advantage & GM growth will outweigh opex margin pressure concerns," Bank of America noted on Friday morning.

Latest Ratings for AMZN

Nov 2020China RenaissanceUpgradesHoldBuy
Nov 2020CitigroupMaintainsBuy
Oct 2020BenchmarkMaintainsBuy

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings


Related Articles (AMZN)

View Comments and Join the Discussion!

Posted-In: Analyst Color News Retail Sales Topics Hot Analyst Ratings Movers Tech Best of Benzinga

Latest Ratings

AHCOCanaccord GenuityMaintains39.0
NTAPGoldman SachsUpgrades56.0
IBKRCompass PointUpgrades
NTAPLoop CapitalUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at