Amazon Jumps 5% as Coronavirus Buying Boosts Demand

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Investing.com – The impact from the coronavirus pandemic has many companies facing uncertain futures, but Amazon isn’t one of them. The e-commerce giant has enjoyed a jump in demand as customers rush to buy essentials amid government-imposed lockdown measures worldwide.

Canaccord Genuity raised its price target on Amazon to $2,600 from $2,500, sending Amazon.com (NASDAQ:AMZN) about 5% higher.

Amazon has seen an increase in demand as panic buying for household essentials and groceries continues to sweep through the globe in the wake of the ongoing Covid-19 pandemic.

“We continue to see increased demand as our teams support their communities, and are going to continue to hire, creating an additional 75,000 jobs to help serve customers during this unprecedented time,” Amazon said. 

The increase in orders, however, is expected to ramp up Amazon’s fulfillment costs in the first half of the year, Canaccord said. But “increased pricing power” from its cloud business will likely boost margins and offset the anticipated rise in costs, it added.

Amazon is up about 16% for the year.

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