Amazon.com Inc. (AMZN) is planning to create another 1,000 jobs in Ireland amid a surge in demand for cloud services and in an effort to help propel the country’s economic recovery following the COVID-19 pandemic.
The new, highly skilled roles will be based in locations across the company’s Cork and Dublin sites in Blanchardstown, Tallaght, the city centre, and north County Dublin. The new hires will bring Amazon’s total permanent workforce in the country to 5,000 people.
Among the new jobs created are software development engineers, network development engineers, Dev Ops engineers, and support engineers, as well as data center technicians and security specialists, and big data specialists. The positions will be deployed in a range of technical management and senior leadership levels at both Amazon and Amazon Web Services (AWS).
“Amazon has been investing and growing in Ireland for over 15 years, and today, we are increasing that commitment with the creation of these highly skilled roles,” said Mike Beary, AWS Ireland Country Manager. “We have seen a surge in demand for cloud services in Ireland and globally, and we are excited to add 1,000 highly skilled roles so we can continue to help our customers, especially in this difficult time, and work towards building a robust digital economy for the future.”
In addition to the new jobs, Amazon is investing in a new 170,000 square foot Dublin campus in Charlemont Square. The campus will be home to AWS’s growing cloud computing workforce, and is expected to open in 2022. In September 2020, the first of Amazon’s wind farm projects in Ireland will come online.
Shares in Amazon have been on a steady winning streak jumping 63% so far this year, with analysts maintaining a bullish outlook on the stock. The Strong Buy consensus boasts 37 Buys versus 2 Holds. In view of this year's rally, the $3,185.47 average analyst price target implies a modest 5.9% upside potential in the stock in the coming 12 months. (See Amazon stock analysis on TipRanks).
Ahead of Amazon’s earnings release on July 30, Wedbush analyst Michael Pachter raised the stock’s price target to $3,500 (16% upside potential) from $3,050 and reiterated a Buy rating, saying that he expects significant top-line upside for Q2, but near- and long-term profitability remains difficult to predict.
“COVID-19 and the stay-at-home response for many consumers should result in substantial revenue upside in Q2, with the company’s burgeoning grocery business likely a key driver,” Pachter wrote in a note to investors.
Pachter forecasts Q2 revenue of $81 billion and operating income of $1.83 billion vs. consensus at $81.3 billion and $0.93 billion respectively.
Related News:
Amazon Invested In Startups And Then Launched Competing Products- Report
Apple iPhone SE Boosts Q2, But Unlikely To Cannibalize 5G Sales – Report
Amazon Exports From India-Based Sellers Crosses $2B Mark – Report
Amazon.com Inc. (AMZN) has been accused of investing in startups to steal their ideas to create competing products, according to July 23 report from the Wall Street Journal.
Numerous startups outline a process that usually started with Amazon expressing interest in their company. In some cases, companies agreed to share proprietary information about their products and provide the product's strategy with the understanding that Amazon was interested in investing. Some of the startups received initial investments through Amazon.com Inc. or Amazon's Alexa Fund, while others were offered exploratory meetings to discuss their products.
The Journal stated that it spoke with "two dozen entrepreneurs, investors and deal advisers who said Amazon appeared to use the investment and deal-making process to help develop competing products."
Within a short period, usually of 6 months to a year following the meetings with potential startups, Amazon would then unveil its own competing product that emulated the initial product showcased by the startup.
Alfred Fabricant, a lawyer representing startup Vocalife, said, "They find technology they think is extremely valuable and seduce people to engage with them, and then cut off all communication after initial sessions with an inventor or company." He added, "Years later, lo and behold, the technology is in an Amazon device."
The Journal report highlights stories from numerous startups like DefinedCrowd Corp, Nucleus, LivingSocial, Vocalife LLC, Novel Effect Inc., and Vivint Smart Home Inc.
In a July 23 statement to Business Insider, an Amazon spokesperson said, "For 26 years, we've pioneered many features, products, and even whole new categories. From amazon.com itself to Kindle to Echo to AWS, few companies can claim a track record for innovation that rivals Amazon's." The spokesperson added, "Unfortunately, there will always be self-interested parties who complain rather than build. Any legitimate disputes about intellectual property ownership are rightly resolved in the courts."
DA Davidson analyst Tom Forte notes on July 21 that Amazon is not behaving in an anti-competitive manner in regards to its own private-label brands. After comparing 100 products across Amazon and its competitors, he says that it is consistent with the best practices of other retailers. He maintains a Buy rating on the stock but is withholding his price target until Amazon’s earnings are reported on July 30.
Amazon's stock is up 63% year-to-date with a Strong Buy analyst consensus that breaks down into 37 Buy ratings versus 2 Hold ratings and no Sell ratings. The $3185.47 average price target implies 6% upside potential for the shares in the coming 12 months. (See Amazon's stock analysis on TipRanks).
Related News:
Will Amazon Rise Another 19%? These Two 5-Star Analysts Think So
Disney Delays Launch Of Its Marvel TV Series Citing Covid-19 Pandemic
2 “Strong Buy” FAANG Stocks to Watch Into Earnings