Amazon to cut another 9,000 jobs: a reason to buy Amazon stock?
- Amazon announces another massive round of layoffs to streamline costs.
- Morgan Stanley reiterates AMZN as a top eCommerce stock to own.
- Amazon stock is currently up about 15% versus the start of the year.
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Amazon.com Inc (NASDAQ: AMZN) is in focus this morning after announcing another massive round of layoffs to streamline costs.
What jobs will be affected?
On Monday, the tech behemoth confirmed plans of cutting another 9,000 jobs to better position for the economic uncertainty it sees in the near future.
The said lay off will primarily affect the company’s cloud business, advertising, human resources, and Twitch livestreaming. In a memo to employees, CEO Andy Jassy said:
The overriding tenet of our annual planning this year was to be leaner while doing so in a way that enables us to still invest robustly in key long-term customer experiences that can improve customers’ lives and Amazon as a whole.
The announcement arrives only a couple months after Amazon completed its previous round of job cuts that affected over 18,000 of its worldwide employees.
Should you buy Amazon stock?
Also on Monday, Brian Nowak – Equity Analyst at Morgan Stanley reiterated Amazon.com Inc as one of the top eCommerce names to own. His research note reads:
eCommerce penetration is growing again off a higher post COVID base. Scale players with leading platforms/infrastructure are best positioned to take share.
He has a price objective of $150 on the Amazon stock. That represents more than a 50% upside from here. Last month, the Nasdaq-listed firm reported its least profitable fourth quarter since 2014 (read more).
Other eCommerce stocks Nowak recommends buying include Walmart, Farfetch, and Nike Inc that’s set to announce its quarterly performance today after the bell.
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