BofA Securities analyst Justin Post reiterated a Buy rating on Amazon.Com, Inc (NASDAQ: AMZN) with a price target 174.
Amazon announced that the company will hire 250,000 full-time, seasonal, and part-time logistics employees in the U.S. before the Holiday season, up from 150k in 2022, which Post thinks turned out to be the worst Holiday season vs. early year expectations since the Great Financial Crisis, with Amazon's North America Q/Q revenue growth at just 18% (26% in 2021).
Per Bloomberg, the workers will earn between $17-$28 per hour depending on location, with the average being $20.50/hr (up from $19/hr a year ago), and some new hires are reportedly eligible for bonuses up to $3,000.
The additional 250k workers, if all hired, would represent about 17% of the 1.46 million employees disclosed in 2Q. However, Post notes that headcount only increased by 18k from 2Q to 4Q in 2022 despite the announcement of plans to hire 150k, so he thinks many workers will be seasonal.
Amazon's announcement indicates Holiday ...