Why Amazon.com stock just popped

Amazon proposes a partnership with the U.S. government.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

In a late-breaking development, GeekWire just reported that Amazon.com Inc (NASDAQ: AMZN) has delivered a letter to new US President Joe Biden offering "to assist you in reaching your goal of vaccinating 100 million Americans in the first 100 days of your administration."  

By 3 p.m. EST, Amazon.com stock had jumped 4.9% in response.

So what

In the letter, Amazon Worldwide Consumer CEO Dave Clark reminded the president that Amazon.com is "the nation's second largest employer" with "over 800,000 employees in the United States, most of whom are essential workers."

Clark advised that Amazon has already hired a licensed third-party healthcare provider to administer vaccines on-site at Amazon facilities, and is "prepared to move quickly" to immunize the employees "once vaccines are available." Amazon also says, though, that it is "prepared to leverage our operations, information technology, and communications capabilities and expertise to assist your administration's vaccination efforts."

Now what

Clark did not specifically state in his letter that he wants to use Amazon's facilities, its workforce, or its relationship with the unnamed healthcare provider to administer vaccines to the populace in general, or to help distribute the vaccine to other locales -- although this seems to be implied, and may be something he would offer if the president follows up on his invitation.

At the very least, Amazon seems to be promising to help the new administration get off to a good first start with as many as 800,000 willing vaccine recipients. In so doing, Amazon could lower its own worker safety costs by reducing the incidence of COVID-19 at its stores and warehouses, where more than 19,000 workers have already tested positive over the course of the pandemic.

And if the president takes Amazon up on its implied promise to take an active role in rolling out vaccines across the nation? That could mean contracts and government money for Amazon, which would be an even bigger boon for the stock.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Rich Smith has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on International Stock News

Blue electric vehicle on a green rising arrow with a charger hanging out.
International Stock News

Boom! Why has Tesla stock rocketed 68% so far in 2023?

It's already been a year to remember for the electric vehicle giant.

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.
International Stock News

How an AI demo erased $140 billion from Alphabet stock

One error made this a costly display of Alphabet's new technology.

Read more »

A man with a beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.
Share Market News

Meta stock price rockets 19% on $56 billion buyback

Meta stock has just seen one of its biggest jumps in history...

Read more »

woman looking surprised watching netflix
International Stock News

The Netflix share price just popped. Here's one way to buy in on the ASX

Here's one way to get a slice of whatever future Netflix might have.

Read more »

A futuristic view of electric vehicle technology with speeding bright light trails indicating power.
International Stock News

If I'd bought $5,000 of Tesla stock 3 years ago, what would my investment be worth now?

Here's how much mind-blowing money investors have made on Tesla stock in three years...

Read more »

A man and a woman sit in front of a laptop looking fascinated and captivated.
International Stock News

Alphabet stock: A once-in-a-decade opportunity to outdo Warren Buffett?

Is now the time to snap up shares in the global tech giant?

Read more »

Piggy bank on an electric charger.
International Stock News

Aussie investors are buying Tesla shares in droves. Should you?

A beaten-up stock, dramatic price cuts, and a controversial leader -- does investing in Tesla still make sense?

Read more »

Happy woman on her phone while her electric vehicle charges.
International Stock News

Should I buy Tesla stock for 2023 or not?

Is it finally time to buy Tesla stock?

Read more »