Amazon aims to hire over 55,000 new employees during its next Career Day, on September 15. The number may look small compared to Amazon’s total headcount of 1.3 million globally, 950,000 of whom in the US — out of curiosity, one out of every 153 US workers is an Amazon employee.
(Read more from the Amazon Maven: AMZN Is The Only FAAMG Stock Off Its Peak. Buy The Dip?)
Keeping up with demand
As disclosed by Reuters, the demand is mostly for technology and corporate professionals to fill engineering, research science and robotics roles. Amazon hopes to position for growth in its e-commerce, cloud, computing, and advertising businesses — and even Project Kuiper, Amazon’s satellite internet venture that is a rival to Elon Musk’s Starlink.
In the wake of Amazon’s hiring efforts, notice below how important the headcount metric has been for the company’s revenue growth story. Amazon’s sales have increased in line with its workforce expansion (R-squared coefficient of 0.98). It is not a stretch to say, therefore, that Amazon’s ability to deliver on the top line is closely associated with the number of workers that the company attracts.
Growth plans: the key risk
Amazon’s goal of hiring 55,000 people is not an easy one to accomplish. As pandemic restrictions have slowly eased in 2021, many US firms have struggled to find suitable workers – especially in fields like engineering and business, in which highly qualified employees are not easy to find.
Neither Alphabet, Apple nor Facebook have announced a similar hiring program recently. Still, Amazon could be in for a fierce dispute for tech and business professionals with the other FAAMG giants.
Keep an eye on AMZN shares
Ahead of its upcoming Career Day, Amazon’s coffers look strong enough to finance its next round of expansion within e-commerce, cloud computing and secondary ventures. This could be the jolt of optimism in long-term growth that investors need to support the stock, which remains in a drawdown.
Because the Seattle-based behemoth has both the cash and the plans, the final piece of the puzzle lies with successfully hiring the extra headcount. From there, Amazon’s growth story can continue to unfold, likely fueling bullishness going forward.
Pop quiz: how many US workers are employed by Amazon?
Is the price right?
Looking at a company’s business fundamentals is only half the work needed to find a good stock. How much one pays to own the shares is a key factor in the success of any investment. This is why valuation analysis is so important.
Alpha Spread’s user-friendly platform allows you to estimate a stock’s fair value –through valuation multiples, discounted cash flow, and more. I believe that the service is a must for anyone looking to own the right stock at the right price. Check out alphaspread.com and get started with a 7-day free trial.
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting The Amazon Maven)