Amazon.com, Inc. AMZN has conducted a search for the company's second headquarter location for a year. Detroit was in contention until January, until the e-commerce titan decided the city lacked the needed talent.
After months of scrutiny, Amazon has reportedly reached a verdict.
What Happened
Amazon is finalizing plans to house roughly 50,000 employees in two separate locations, according to The New York Times: Long Island City, New York and Arlington, Virgina.
Why It’s Important
The choice of two locations would leverage tax incentives and allow for a wider range of talent, according to NYT.
In a relatively short period of time, Amazon has become a household name for Americans in a variety of ways.
Aside from its e-commerce platform, the company has become a major competitor in subscription boxes, technology such as smart speakers and streaming music and video.
Amazon recently raised its minimum starting wage to $15 an hour.
What’s Next
Steve Kovach, a Long Island City resident who works as a tech editor at CNBC, tweeted his thoughts after the NYT report was published:
I've been living in Long Island City for nearly 2 years. Some thoughts on the neighborhood and Amazon:
— Steve Kovach (@stevekovach) November 6, 2018
Maybe Amazon thinks workers will scoop up much of the new rental units being built now. Most of the towers should be complete by the time HQ2 opens. Then they could walk to work or Amazon could set up a private shuttle service around the neighborhood.
— Steve Kovach (@stevekovach) November 6, 2018
There's also more apartment inventory than landlords can fill. And that inventory is only going to increase as construction continues. Most buildings offer 1 or 2 months free rent with a 13-month lease. I got 2 months free for renewing this year. That'll change if Amazon comes.
— Steve Kovach (@stevekovach) November 6, 2018
Amazon shares were up 1.18 percent at $1,647 at the time of publication Tuesday. The stock has surged over 367 percent in the last five years.
Related Links:
Reports Say Amazon Narrows List Of Cities For HQ2, Virginia Could Be Top Choice
Amazon Shares Could Hit $3K By 2020, Jefferies Says After Sum-Of-The-Parts Valuation
Photo courtesy of Amazon.
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