Do you think Amazon will continue to build new locations even if the market crashes?
Asked by
JLeslie (
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March 10th, 2020
Amazon is building a new headquarters in Nashville, and from what I understand it recently opened a new distribution there. New Amazon employees have been moving to Nashville.
The recent stock market tumble makes me wonder if a company like Amazon would be negatively impacted if the stock market continued to decline, or even a failure to recover right away.
Or, do you think Amazon will continue to grow and hire people in the immediate future, even if people start to feel unsure about the economy, and had some personal losses in the stock market.
The coronavirus is very possibly increasing online purchases, I don’t know if that will persist once the illness is no longer a threat.
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9 Answers
Why would they not continue, year over year their business has grown. Stock market is only interesting if you have a lot of money tied up in the stocks and bonds, like your only revenue is from dividends and coupon payments. That group is extremely small.
Yes. The market crash is temporary. Maybe it takes a year or two to recover. People will still buy things.
Amazon has tons of money. They should build now, at lower costs, because eventually the market will come back.
@Tropical_Willie If the stock market gets really bad it could cause some jobs being lost, and just overall worry that things are bad. I think ⅓ of adults have retirement funds like IRA’s, and those usually are somewhat invested in the stock market. I do think @elbanditoroso makes some really good points though.
@JLeslie The rest of the economy is strong, it was oil and some other groups of stocks that caused the sell off. I fail to see a direct connection between Dow Jones and jobs.
Bezos is steadily working to get into the software market where he feels he can make a better profit. At this point, he’s working at making the company sellable, so continuing to build it up seems logical to me. According to this the market may be down, but Amazon is up about 3% at 1:15 EDT. The market will bounce back as well.
Amazon weathered the last recession pretty well, and that was the worst downturn since the Great Depression. And recession caused this year by pandemic will not be as long lived, nor is it structural the way the housing crisis was.
Their market isn’t going to crash.
I’m sure business is booming because of the hysteria. People can order toilet paper and hand sanitizer without having to go out in public. They can order food, all from home.
The market will come back, in a year or two when (hopefully) there’s a vaccine and things die down.
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