Amazon's Holiday Hiring Spree Signals Strong Consumer Demand, Expects Strong Q4 Growth: BofA Analyst
Portfolio Pulse from Anusuya Lahiri
Amazon plans to hire 250,000 logistics employees in the U.S. ahead of the holiday season, a 67% increase from 2022, signaling strong consumer demand. BofA Securities analyst Justin Post reiterated a Buy rating on Amazon with a price target of 174. The increased labor costs could represent $2.25 billion in Q4, up $1 billion from a year ago. Despite this, Post expects Amazon's Q4'23 gross profit to be up $12 billion Y/Y vs. Q4'22, more than enough to absorb the incremental labor costs.
September 20, 2023 | 7:18 pm
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Amazon's plan to hire 250,000 logistics employees signals strong consumer demand. Despite increased labor costs, BofA Securities analyst Justin Post expects Amazon's Q4'23 gross profit to absorb these costs and reiterates a Buy rating on the company.
The news of Amazon's hiring spree indicates strong consumer demand, which is a positive signal for the company's performance. The increased labor costs are expected to be absorbed by the projected increase in Q4'23 gross profit. This positive outlook is further reinforced by the Buy rating from BofA Securities analyst.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100