Another Win for Amazon?
Even though it’s not technically summer yet, the start of June always feels like the beginning of summer to me. This could be one of the reasons why businesses are hurrying to open back up and implement health and safety standards to prevent the spread of COVID-19. The other reason is that most of these businesses have been closed since March. People have been restless and want to go out and enjoy those summer activities that they look forward to.
If people were denied their summer that could really lower morale. For me, it would be awful if I couldn't spend my summer nights with a beer in hand, in the company of my friends at my favorite restaurants. I would miss taking a hike or visiting my dad. These are things that keep me sane, and after three months of being indoors... I need to stay sane. There are only so many movies to watch, home projects to complete, and books to read.
The push to reopen and get things back on track, especially for summer, could be one of the reasons why the market showed a glimmer of hope on Monday morning and trended up even after a weekend of protests and looting in some of the nation’s largest cities. These cities were already struggling to figure out a way to reopen amid the coronavirus pandemic.
American states have a lot to figure out — how to bring back their economies during a pandemic and now how to move forward when there is unrest in their cities — and it seems like they’re all doing it on their own.
At the same time, some massive companies, like Amazon (NASDAQ: AMZN), have thrived despite the pandemic and its effects. Obviously, most people staying inside their homes will opt for delivery services to bring them the essential items they don't feel like risking their health to go out and get. People are now ordering from Amazon even more. Some even decided to try out Amazon Fresh for their grocery needs.
The demand for Amazon was so high, it ended up needing to hire more employees to keep up. The company recently announced that it plans to offer permanent roles to as many as 70% of the 175,000 new U.S. workers it hired during the COVID-19 surge.
An announcement on Amazon’s blog said:
Like other companies, we hired these individuals for seasonal roles to meet a surge in demand and, for many, there was the hope of returning back to their previous companies once states began to re-open.
As the long-term picture becomes more clear, we’re providing the opportunity for 125,000 of those who came on with us seasonally to stay with Amazon and transition into a regular, full-time role beginning in June. Some may choose to return to their previous job and others may choose to stay Amazon in seasonal or part-time roles.
This announcement to keep on 70% of its new hires signals that the company sees an even brighter future for itself, even as state lockdowns are lifted and more people shop in public again.
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When the U.S. began its lockdowns back in March, it was a blessing for Amazon. It already had everything in place to make deliveries to people. It kept up with the demand and still delivered packages in a timely manner. It hired people while other businesses were laying off employees. Even if some businesses had the capacity and capability to do online orders, most of those orders wouldn’t be fulfilled as quickly as an order from Amazon.
Some companies were forced to shut down while Amazon continued business as usual because it was considered essential. While those 175,000 newly hired employees most likely felt thankful to have a job, they were still putting themselves into a situation that increased their odds of getting COVID-19. But a paycheck is a paycheck, and sometimes that’s the only option you have.
The trillion-dollar Amazon continues to make money during a pandemic, and it's already one of the largest companies in the world. It seems like there’s no stopping Amazon. It ships more than 1 billion packages every year, has more than 300 million customers around the world, and earned around $200 billion in revenue last year.
But there’s something that you might not know about Amazon — it’s legally obligated to hand over a “tax” on its profits. And that “tax” is being collected by only a few Americans who know about it. The next scheduled date is June 15. That gives you a little more than a week to learn the details and how you can join these other Americans making a profit off of Amazon.
The steps are outlined here. If you have a moment to spare, you could benefit greatly. But you don’t want to wait around too long. June 15 is the next payout date.
Until next time,
Monica Savaglia is Wealth Daily’s IPO specialist. With passion and knowledge, she wants to open up the world of IPOs and their long-term potential to everyday investors. She does this through her newsletter IPO Authority, a one-stop resource for everything IPO. She also contributes regularly to the Wealth Daily e-letter. To learn more about Monica, click here.
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