Amazon shares fall, 100+ cities bid for 2nd headquarters spot

Amazon shares opened lower Thursday on final day for cities to submit proposals to become the retail giant's second headquarters base.

Amazon shares fall, 100+ cities bid for 2nd headquarters spot

Amazon shares were trading 1% lower in the US morning trading session Thursday. The stock closed lower Wednesday too, ending the session below the $1,000 level for the first time in a week.

While the share price is in the red, over 100 cities have submitted their proposal to become the home of Amazon’s second US headquarters.

Amazon plans to invest some $5 billion dollars and employ 50,000 people in its second US headquarters. The company says the company’s second US base will be the equal of its Seattle head office.

Wider local job creation

Not only will an Amazon head office employ 50,00 staff to help run the online retail giant, employment will also be supported during the development and construction phase of the new headquarters, too.

The over 100 cities that have expressed a definite interest in becoming a second US home to Amazon include:

  • Boston.
  • Chicago.
  • Salt Lake City.
  • Dallas/Fort Worth.
  • Nashville.
  • Detroit.
  • Tucson.
  • Newark.
  • Miami.

Amazon has detailed what its looking for from the new base of its second headquarters. Among them are:

  • A local population of over 1 million.
  • Close proximity to airports and major road networks.
  • Areas with the potential to attract and retain technical talent.
  • A consumer and business friendly environment.

Tax benefits

Amazon will undoubtedly give a major boost to the region it selects to be the home of headquarters number two. But, it’s considered highly likely the company will expect something in return for its investment – tax benefits and other financial incentives.

According to some reports, New Jersey, the home of two cities – Newark and Camden – who plan to send in proposals – is said to be offering close to $7 billion in tax breaks to help make the state a more attractive option.

More will be known after today, as Thursday is the deadline for proposal submissions. Wherever Amazon chooses, however, it will likely be greeted with a mixture of positive and negative reaction.

And what that will do for Amazon’s share price so close to its third quarter earnings update, is anybody’s guess.

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