Amazon Shares Jump 9% During Coronavirus Pandemic
No firm’s stock market worth has benefited more from the coronavirus pandemic than Amazon.com’s.
The online retailer and cloud computing titan’s market capitalization has inflated by more than $90 billion to record highs since mid-February, adding $5 billion to the fortune of founder and Chief Jeff Bezos.
Optimism about gradually reopening the U.S. financial system has propelled a rally on Wall Street in recent weeks; however, the S&P 500 stays down 13% since February 19, before concern caused by the coronavirus gripped Wall Street and ended the benchmark’s 11-year bull market.
With online shopping booming as millions of individuals remain home and avoid traditional shops, Amazon’s stock has spiked 9% in the same interval, along with a 2% soar Wednesday.
White is among 49 analysts who recommend buying Amazon’s shares, based on Refinitiv. Just two analysts have “hold” scores, and none recommend selling.
The Seattle, Washington-based firm’s outcomes Thursday after the bell will give investors a glimpse of how the global crisis has affected its retail enterprise in the final month of the quarter, in addition to its extremely profitable Amazon Web Services cloud-computing unit.
Traders will also want to understand how Amazon expects the ongoing well-being crisis to affect its enterprise in the coming months, along with the company’s ongoing, deep investments to scale down its Prime shipping to one-day from two-day service.
Amazon and other main retailers may also emerge from the pandemic in stronger positions relative to rivals. The U.S. financial system shrunk in Q1 at its sharpest pace since the financial crisis due to shelter-in-place orders, and stores that have already been struggling may not survive the coronavirus outbreak.