Amazon.com, Inc. (AMZN - Free Report) recently announced that its regional air hub at the Fort Worth Alliance Airport will commence operations from October. This new air hub is expected to create approximately 300 full-time jobs for North Texas residents.
The air hub is anticipated to cater to Amazon’s large-scale needs as it has appropriate infrastructure, including sortation capabilities, to manage flights on a daily basis.
Notably, the company’s focus on expanding distribution networks is expected to create a better shopping experience.
The latest move underscores its two basic strategies of continual expansion and increased focus on fulfilling customer needs.
Amazon.com, Inc. Price and Consensus
Job Creation Continues
The e-commerce giant has been successful in creating multiple job opportunities, while strengthening its services all over the world.
Coming to Texas, the company has been strengthening presence in this state and has already invested millions of dollars. In the past few years, Amazon created in excess of 22,000 jobs and invested more than $10 billion in the state.
Amazon announced investment in multiple fulfillment facilities, cloud infrastructure and a 253-megawatt wind farm in the state, which has a healthy business environment and skilled manpower. Reportedly, these investments have generated an additional 32,000 indirect jobs.
The recent air hub at Fort Worth Alliance Airport is further expected to complement its robust growth in Texas.
Prime: A Key Growth Driver
Amazon continues to benefit from the robust Prime program, which gives it a competitive edge in the retail business. Prime also boasts a loyal subscriber base. Thus, its offers and fast delivery options encourage customers to spend more on Amazon, in turn boosting revenues.
Notably, Prime members are much more loyal and spend double the amount spent by non-Prime members.
The e-commerce giant has been making constant efforts to significantly expand grocery services, which include delivery as well as pick-up facilities for natural and organic products.
In addition, Amazon has been expanding global footprint by making Prime available in many new countries like Canada and Brazil. Notably, the company’s growing initiatives toward enriching the video portfolio with regional and award-winning content remain a tailwind.
Given increasing engagement of Prime customers, it is leaving no stone unturned to ensure that their requirements are met. From the span of a day to two hours, two hours to 15 minutes and 15 minutes to two minutes, Amazon has been cutting down on delivery time for Prime members.
Therefore, we believe that the company is moving in the right direction by gaining control over the delivery services network, whose demand is expected to grow going forward.
Zacks Rank & Stocks to Consider
Currently, Amazon has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Alphabet Inc. (GOOGL - Free Report) , Itron, Inc. (ITRI - Free Report) and MACOM Technology Solutions Holdings, Inc. (MTSI - 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 Alphabet, Itron and MACOM Technology is currently projected at 17.5%, 25% and 15%, respectively.
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