E-commerce giant Amazon (AMZN) is hiring 250,000 seasonal workers as it gears up for the year-end holidays.
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The Seattle-based company said it is hiring the same number of seasonal workers as last year and most of them will work in its transportation delivery service and warehouse fulfillment centers. Amazon added that it expects online shopping to outpace in-store shopping this November and December.
According to Amazon, online holiday shopping in 2024 is likely to grow 5% from a year a go and reach a record $240.8 billion. Credit card company Mastercard (MA) has forecast that broader holiday spending at stores and shopping malls will rise 3.2% this year from 2023.
An Uncertain End to the Year
The year-end holidays that run from Thanksgiving at the end of November through New Year’s Day on January 1 are important to U.S. retailers. Many companies earn more than half their revenue for the year during the six week stretch that begins with Black Friday and includes Cyber Monday, Boxing Day and New Year’s sales.
Many retailers are kicking off their holiday sales earlier this year, with Amazon holding its latest Prime Day sales extravaganza October 8 and 9. However, the outlook for year-end holiday shopping is uncertain due to signs of a weakening labor market and diminished savings among American consumers.
Some retail analysts are forecasting flat holiday sales this year. The National Retail Federation in the U.S. expects retailers in America to hire a total 520,000 seasonal workers this holiday season, down 8% from 564,200 positions a year ago. Amazon accounts for nearly half the total number of seasonal workers expected to be hired this year.
Is AMZN Stock a Buy?
Amazon stock has a consensus Strong Buy rating among 45 Wall Street analysts. That rating is based on 44 Buy and one Hold recommendations made in the last three months. There are no Sell ratings on the stock. The average AMZN price target of $224.05 implies 23.46% upside potential from current levels.
