As Amazon (AMZN) prepares for Black Friday 2024, thousands of workers across 20 countries are planning a strike. Between Black Friday and Cyber Monday (November 28-December 2), Amazon employees in several countries, including the U.S., UK, Germany, India, and China, will protest in an effort to secure higher wages and climate action from the company. This large-scale strike could have significant repercussions for Amazon, as it coincides with one of the year’s busiest shopping weekends and could impact its ability to deliver packages.
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What’s Happening with Amazon Stock?
So far, news of the pending protest hasn’t affected Amazon stock. Shares closed yesterday in the green and continued rising today in premarket trading. The past week has been fairly volatile, primarily due to complex market conditions. However, AMZN stock remains in the green over the past five days and has been steadily rising over the last three months, currently up 16% for the period.
The upcoming strike could certainly impact AMZN stock if it is not resolved quickly. Amazon is likely to receive thousands of orders during the three-day period between Black Friday and Cyber Monday, as it lowers prices on many items. For many people, this is a prime opportunity to start their holiday shopping. Now, Amazon faces the possibility of being unable to deliver these packages or having them delayed until the strike ends.
Amazon workers have teamed up with the Make Amazon Pay campaign, a group that pushes Amazon toward providing better wages for its workers globally. According to The Guardian, it includes “80 trade unions, anti-poverty, and garment worker rights groups.” This suggests that many Amazon workers will participate in the strike, which could significantly compromise the company’s ability to ship and deliver packages.
Is Amazon Stock Expected to Rise?
Wall Street remains highly bullish on Amazon, even as the strike looms ahead. Analysts have a Strong Buy consensus rating on AMZN stock based on 44 Buys, and one Hold assigned in the past three months, as indicated by the graphic below. After a 36% rally in its share price over the past year, the average AMZN price target of $239 per share implies 17% upside potential.
