Insights

Why Amazon.com stock just popped

Amazon proposes a partnership with the U.S. government.
The post Why Amazon.com stock just popped appeared first on The Motley Fool Australia. –

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

amazon.com stock represented by man holding parcel printed with amazon logo

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

In a late-breaking development, GeekWire just reported that Amazon.com Inc (NASDAQ: AMZN) has delivered a letter to new US President Joe Biden offering “to assist you in reaching your goal of vaccinating 100 million Americans in the first 100 days of your administration.”  

By 3 p.m. EST, Amazon.com stock had jumped 4.9% in response.

So what

In the letter, Amazon Worldwide Consumer CEO Dave Clark reminded the president that Amazon.com is “the nation’s second largest employer” with “over 800,000 employees in the United States, most of whom are essential workers.”

Clark advised that Amazon has already hired a licensed third-party healthcare provider to administer vaccines on-site at Amazon facilities, and is “prepared to move quickly” to immunize the employees “once vaccines are available.” Amazon also says, though, that it is “prepared to leverage our operations, information technology, and communications capabilities and expertise to assist your administration’s vaccination efforts.”

Now what

Clark did not specifically state in his letter that he wants to use Amazon’s facilities, its workforce, or its relationship with the unnamed healthcare provider to administer vaccines to the populace in general, or to help distribute the vaccine to other locales — although this seems to be implied, and may be something he would offer if the president follows up on his invitation.

At the very least, Amazon seems to be promising to help the new administration get off to a good first start with as many as 800,000 willing vaccine recipients. In so doing, Amazon could lower its own worker safety costs by reducing the incidence of COVID-19 at its stores and warehouses, where more than 19,000 workers have already tested positive over the course of the pandemic.

And if the president takes Amazon up on its implied promise to take an active role in rolling out vaccines across the nation? That could mean contracts and government money for Amazon, which would be an even bigger boon for the stock.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Rich Smith has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why Amazon.com stock just popped appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!