Virus fuels e-commerce growth
Amazon.com Inc. has been one of the standout performers of the current market environment, and the rally has returned the e-commerce company to all-time highs.
The advance in the stock comes in stark contrast to the overall U.S. equity market, which has struggled in the face of the coronavirus pandemic. While the S&P 500 is in negative territory for the year, Amazon has climbed nearly 20 per cent over the same period, making it one of the 10 biggest percentage gainers among S&P components. The gains have also lifted Amazon back above the threshold of a US$1 trillion market capitalization.
Shares rose 1.8 per cent on Tuesday, taking it past a record hit earlier this year.
Amazon has benefited in the current environment as the pandemic forces store closures, amplifying e-commerce demand. Earlier this week, Amazon said it would hire an additional 75,000 workers to meet the spike in demand. The company already filled 100,000 previously announced temporary and full-time positions.
In addition to rising e-commerce demand, the company’s Amazon Web Services cloud-computing business is also expected to see higher demand in the current environment, as the pandemic forces more people to work remotely.
Amazon is expected to report first-quarter results later this month.