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Amazon (AMZN) to Add Over 1,500 Jobs, Expand in San Antonio

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Amazon (AMZN - Free Report) recently announced plans of opening two fulfillment centers in San Antonio.

In addition to this, it plans to open a new delivery station therein at Brooks, in District 3. At such stations, packages are transported from fulfillment centers and loaded directly into vehicles for delivery to customers. This delivery station is expected to be launched in 2021.

These facilities will cover approximately 2.1 million square feet and create more than 1,500 jobs in San Antonio.

Meanwhile, Amazon has been increasingly investing to build and modernize fulfillment centers, mainly to cut shipping costs and speed up delivery. The latest move is in sync with the company’s persistent efforts toward expanding fulfillment network and delivery capacity.

Texas Expansion Continues

With the COVID-19 pandemic causing a surge in home deliveries, Amazon is adding to its Texas distribution operations with millions of square feet of additional warehouse space.

In October, the company announced plans to open its first fulfillment center in Waco with a 700,000 square-foot robotics fulfillment center.

Additionally, in December, Amazon announced plans to open the company’s first fulfillment center in Missouri City, anticipated to be launched in 2021. The facility will span 1 million sq ft, in which associates will work on larger-sized customer items such as patio furniture, outdoor equipment or rugs.

The recent facility in San Antonio is further expected to complement its robust growth in Texas.

Bottom Line

Amazon has been expanding on a global basis in a bid to maintain supremacy. The company is investing more in fulfillment, technology and content. Its focus on automating distribution centers is clearly intensifying and investment in robotics should continue to pay off.

The latest step to recruit more personnel highlights that Amazon is focused on expanding operations in the state and delivering enhanced services to more customers. Consequently, the company is likely to achieve growth targets in the days to come.

Although elevated expenses could hurt the bottom line in the near term, we believe these measures are necessary to maintain its dominance in this highly competitive market.

Zacks Rank & Stocks to Consider

Amazon currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include The Trade Desk Inc. (TTD - Free Report) , Dropbox, Inc. (DBX - Free Report) and Inuvo, Inc. (INUV - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for The Trade Desk, Dropbox, and Inuvo is currently projected at 25%, 40.9% and 30%, respectively.

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