Another 1,000 Amazon (AMZN) employees at the KSBD air hub in Southern California have unionized by joining the International Brotherhood of Teamsters. This move follows months of tensions at the e-commerce giant’s facility. In July, workers went on strike after claiming that Amazon retaliated against their efforts to organize. Furthermore, operations were shut down in September when workers protested unsafe conditions caused by nearby wildfires. With the holiday season approaching, workers are demanding fair wages, improved conditions, and a stronger voice on the job.
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The KSBD unionization effort adds momentum to Amazon’s broader labor movement, which began in 2020 with the Amazon Labor Union (ALU) at the JFK8 warehouse in Staten Island. The ALU eventually partnered with the Teamsters, and thousands of employees voted to unionize.
Unsurprisingly, Amazon continues to argue that unions are unnecessary by stating that direct communication with the company is the best way to improve wages and working conditions. Reports also suggest that Amazon has hired anti-union groups and used “heat maps” to identify warehouses with strong pro-union activity.
Investor Sentiment
Investor sentiment appears to be souring at Amazon, as 1.1% of investors holding shares of AMZN decreased their positions. However, with shares trading near all-time highs, it is likely the result of some profit-taking or portfolio rebalancing. Indeed, out of the 774,141 portfolios tracked by TipRanks, 14.5% hold AMZN stock. In addition, the average portfolio weighting allocated towards AMZN among those who do have a position is 12.2%. This suggests that investors of the company are still very confident about its future.
Is Amazon Stock Expected to Rise?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 46 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 54% rally in its share price over the past year, the average AMZN price target of $241.95 per share implies 6.4% upside potential.
