Amazon shares Amazon (AMZN 7.38 percentage) have risen in the in the month of October as it rode an overall rebound in tech stocks. It also released a series of announcements regarding operations that appeared to help the company get back to profit growth.
With the Nasdaq increasing by 11% over the in the month that ended on February 1, broader tailwinds that the market was major reasons for Amazon’s gains. The rate of inflation continued to slow and investors were anticipating they would see they would see that the Federal Reserve would continue to lower the pace of its interest rate hikes as it did on Feb. 1. The Federal Reserve raised the Federal Funds rate to just 25 basis points. This was the lowest increase in one year. Since it is a cyclical company with a high value, Amazon will benefit from the slowing of rates of interest and the economy avoids an economic recession of significant size.
For the company itself There were several events that could propel the stock up. The first was that Amazon stated that it would increase the number of layoffs it announced in November to increase the number of layoffs from 10,000-18,000. Although layoffs can result in real workers lose their job, they can bring stock gains because it shows that a company is cutting back on costs.
Amazon also made it clear that the company would be opening it’s Buy with Prime program to any seller that is eligible within the U.S. Its Buy with Prime program allows online retailers that are not part of Amazon to include an Amazon Prime badge to their listings and provide Prime customers the benefit of free returns and free shipping. This program dramatically increases the market addressable to Amazon’s logistics services , and could help improve your bottom line.
In addition, the company also said it would include a pharmacy benefit in Prime which is known as RxPass that will allow customers to receive generic medicines provided for a flat monthly cost of $5.
Purchase using Prime and RxPass Both show Amazon continues to expand its network while reducing expenses through layoffs as well as other actions.
Amazon’s fourth-quarter earnings report will be scheduled for after hours this Thursday. analysts seem to be expecting the stock to rise following the report. Meta Platforms did the same after its earnings announcement yesterday. Analysts anticipate just 6percent growth in the top line and a sharp loss in profits. This could provide the company with an unattainable target to leap over however, it also highlights the issues Amazon faces.
With the gains of today, Amazon’s stock has risen around 40% from its low in December. This is an extreme shift in the sentiment towards Amazon stock. The fundamentals need to improve in order for the stock to continue to gain.