- Nasdaq Composite index closed at a record high of 10,443.65 points, up by 2.21%, on 6 July 2020, driven primarily by tech giants gains.
- 6 July 2020 was an epic day for Amazon as the shares of e-commerce giant soared 5.77% and closed the market session at a price of US$3,057.04 level for the first time.
- The e-commerce behemoth (Amazon) has capitalised on the world’s sudden move to stay-at-home trend and accelerated shift towards the online marketplace and cloud computing.
The stock market commenced the second week of July in an upbeat mood.
On 6 July 2020, technology stocks especially the market darlings FAANG stocks had fuelled a surge that took Nasdaq to an intraday record high of 10,462.05 points and closed the trading session at 10,443.65 points; amid the continued rise in COVID-19 cases across the US and other countries. However, on 7 July, NASDAQ ended the trading session 0.86% lower at 10,343.89 points.
Of late, Amazon’s CEO Jeff Bezos, the world's richest man, has been witnessing an above $3000 share price of Amazon.
Amazon.com, Inc. (NASDAQ:AMZN) shares surged by 5.77% and topped the US$3,000 mark for the first time and closed at US$3,057.04 on 6 July 2020. However, on 7 July, AMZN ended the market session at 3,000.12 points, dipping by 1.86% from its last close, with a market capitalisation of US$1.50 trillion.
Did you read; Amazon Shares Hit All Time High, Recorded Above US$3,000
Jeff Bezos-led juggernaut had been unstoppable.
Are you wondering, what drove Amazon's stock to such an astounding height in the recent past?
Well, the e-commerce giant had been capitalising on not one, but two gigantic and swiftly growing markets: e-commerce and cloud computing.
Amid COVID-19, millions are cooped up at home, working remotely and shopping online to follow social distancing norms. Thus, accelerating the need for online business platforms and cloud computing services.
This coronavirus-era has created and reinforced new online buying behaviours and habits. Shopping for essentials, apparels, and entertainment witnessed a paradigm shift from brick-and-mortar retail stores to online platforms.
The time of crisis provided an opportunity for the e-commerce giant, Amazon to emerge as an emergency portal for those who needed essential products during the lockdown period.
Further, Amazon is riding on the wave to make sure it has all the essentials stocked up and delivered on time, noting a sizeable increase in its online retail sales.
This burgeoning demand for essentials impacted the Company’s supply chain, thereby resulting in demand for more workforce.
In a recent official blog post released in July, Amazon announced that it had hired an additional 1,75,000 workers in their fulfilment and delivery network during March and April to keep up with the soaring demand and assist the existing employees.
Furthermore, the Company is offering a special one-time Thank You bonus of US$500 million to its front-line workers and partners. The bonus, in turn, would appreciate the workforce for their constant support in meeting the massive demands of customers.
Reportedly, the Company is likely to spend ~US$4 billion on coronavirus associated plans to upkeep logistics and run the business with employees’ safety in place.
Besides, the e-commerce giant has established a US$25 million relief fund to support their partners such as independent delivery drivers, Amazon Flex participants, and seasonal personnel under financial hardship or distress in the crisis phase.
Jeff Bezos has also been quite active with his donations and philanthropy flowing towards the coronavirus crisis and has contributed US$100 million to Feeding America, along with US$5 million in Amazon devices to those in need and many such initiatives.
Amazon is embracing the pandemic period, with an accelerated shift towards cloud computing services and is deriving much of its revenue and growth from its cloud business.
With its cloud computing services popularly called as Amazon web services, the Company is striving to help people and organisations function by maintaining operations and shifting of the personnel to working remotely.
One of the licensed lenders in the US, Enova, established Amazon WorkSpaces, a managed, Desktop-as-a-Service (DaaS) product, to set up a reliable work-from-home solution for the first time ever.
Within 24 hours, the licensed lender was able to assist over 1,200 personnel, comprising of above 600 workers handling consumer interactions.
AWS has noted an upsurge in demands.
AWS has supported the World Health Organization (WHO) in introducing an application to assist healthcare workers around the world in caring for patients infected by coronavirus, as well as educate themselves through educational material, guidance, along with virtual skills workshops and other live training sessions.
The Company has also introduced an AWS Diagnostic Initiative and committed an initial investment of US$20 million to accelerate diagnostic research, innovation, and development to fasten their collective insight and detection of coronavirus.
Amazon has diversified offerings that are continuously driving reach and relevance.
Lately, the Company disclosed its plans to acquire an Aussie-founded self-driving car start-up, Zoox by forking out ~US$1.45 billion for this purchase. The Company’s objective behind this acquisition is to strengthen its position in the promising autonomous driving space.
Amid pandemic, the e-commerce behemoth has kept the ball rolling by providing timely delivery of essential products and supporting the remote working via AWS services.