Amazon shares open lower; tech giant to expand video studio
Amazon shares opened lower in the US trading session Tuesday. The move follows two days of gains and an upbeat earnings report last week.
Amazon shares were 0.8% lower, shortly after the open, at $1,101.80.
Amazon’s Q3 earnings exceeded analysts’ expectations last week and helped push shares some 7% higher. Meanwhile, the tech giant this week announced its intention to expand its video production capabilities.
Positive plans
Amazon shares have responded positively to its array of plans and investments over the past year. It’s bricks and mortar retailer purchases, in particular, appear, so far, to be a good path for the tech giant to pursue.
This latest planned investment, meanwhile, shows its streaming service and production offerings remain at the forefront of its growth agenda.
Amazon will relocate its existing studio in Santa Monica, to an historic plot in Culver City. Cinema greats such as Gone with the Wind and Citizen Kane, were both filmed at Culver Studios and Amazon is no doubt hoping some of that success will be apparent in its new productions.
“We are very excited about being a part of 100 years of movie and TV history at The Culver Studios,” said Albert Cheng, Head of Amazon Studios.
“Most importantly, this new LA-based office will give us the much-needed space for our team to work and grow so we can keep bringing Prime Members the very best in series and movies.”
Markets await HQ2 decision
In what is a busy period for Amazon, investors are also awaiting the tech giant’s decision on where it plans to have its second US headquarters.
Of the 238 applications, it’s been tough to pick out a favourite. Now, however, analysts are pointing to Washington D.C., as a strong contender.
Research shows that Washington D.C. currently has the third largest number of corporate job openings. In addition, it would be a strong strategic location for Amazon’s second US headquarters.
Not only would it give them proximity to the senate for its increased lobbying activities, it could also be beneficial to CEO Jeff Bezos, who also owns the Washington Post.
