Amazon.com, Inc. (AMZN - Free Report) recently expanded its San Diego Tech Hub and plans to hire 300 workers. The new workers will focus on fields such as software development, machine learning, cloud computing and digital entertainment.
The latest move underscores the company’s two basic strategies of continual expansion and increased focus on fulfilling customer needs.
Shares of Amazon have outperformed its industry on a 12-month basis. The stock has registered a gain of 99.9% compared with the industry’s growth of 41.4%.
Inside the Headlines
Amazon has opened a 85,000-square feet office in Alexandria Real Estate Equities, Inc.’s Campus Pointe of San Diego, CA. The new office will allow the company to expand its tech workforce in the area.
The move aligns with Amazon’s motto of providing better services to customers, accommodating rapid growth and leveraging the area’s diverse high-technology talent pool.
The company has a long relationship with San Diego, as is evident from the fact that the company heavily invested in the same over the past several years.
Currently, Amazon has 200 engineers and scientists working in San Diego. Additionally, the Amazon Game Studios team, located in San Diego, is soon expected to create a new game that will harness AWS’ cloud computing services and Twitch for connecting players worldwide.
Therefore, the city is well known for its skilled tech professionals who are perfectly in sync with the company’s growth initiative. Additionally, the city provides ample scope to enlarge their respective workforce with the availability of professional and loyal expertise.
In a bid to maintain its supremacy, Amazon has been expanding on a global basis. To this end, the company is investing more in fulfillment, as well as technology and content. Although increased expenses could hurt Amazon’s bottom line in the near term, we believe these measures are necessary to maintain its dominance in this highly competitive market.
Zacks Rank & Other Stocks to Consider
Amazon currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the same industry include Infineon Technologies AG (IFNNY - Free Report) , ON Semiconductor Corporation (ON - Free Report) and Rambus Inc. (RMBS - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Infineon Technologies, ON Semiconductor and Rambus is currently projected to be 7.5%, 13.2% and 10%, respectively.
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