Amazon.com, Inc. AMZN is on track to boast more than 1 million employees by the fourth quarter after announcing on Monday 100,000 new fulfillment network jobs in the U.S. and Canada.
The Amazon Analyst: BofA Securities Justin Post maintains a Buy rating on Amazon's stock with a $3,560 price target.
The Amazon Thesis: Amazon will pay its new fulfillment network workers at least $15 an hour with a $1,000 signing bonus in some areas. This follows last week's announcement Amazon is adding 33,000 corporate and tech employees with an average salary of $150,000.
Post said Amazon is likely to announce even more job creations by the end of the year to keep up with expectations for strong holiday demand. The e-commerce giant is expected to post record sales and the addition of 223,000 hires over the past 12 months isn't enough to keep pace with growth profiles.
In total, Amazon announced the opening of 100 new fulfillment and logistic centers this month, bringing its 2020 new openings to 175. By contrast, 74 facilities were opened in 2019 and prior estimates called for just 133 new facility openings in 2020.
Amazon does face two headwinds moving forward as Street analysts are expecting the company to show significant margin improvements in 2021 and 43% of Amazon Prime members are interested in Walmart Inc's WMT new membership program Walmart+, according to a survey published by Digital Commerce 360.
AMZN Price Action: Shares of Amazon were trading higher by 1.4% at $3,147.73 on Tuesday.
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