On the worst day for the market since 1987, Amazon announced they are looking to hire 100,000 employees to keep up with demand
Yesterday was a bloodbath, plain and simple. Any of you reading this below the age of 55 will not have experienced a day like it in your investing lives. It took mere seconds after the opening bell for the first circuit breaker to trip, and although the market attempted to rally midday, the three major indices all closed down either side of 12%. One of the biggest losses in history. The CBOE Volatility Index (INDEXCBOE:VIX), or as it’s known amongst friends: the Fear Index, closed at record highs, surpassing peaks set during the Great Financial Crisis of 2008, as all non-essential businesses begin to shutter across the world. Making it the perfect time for Amazon (NADAQ:AMZN) to announce a hiring spree.
Amazon seeks 100,000 new employees
As many people are looking down the pipe at an extended stay in their homes, the necessity for online shopping and delivery has never been more prevalent. As such, the world’s largest eCommerce retailer has seen a big influx of demand, which it needs to sate by hiring an additional 100,000 employees. The hires will be across its warehouses and delivery centers, and there will be a $2 wage increase for all hourly workers, including those in its Wholefoods stores. Amazon has also stated any hourly workers who have caught the virus or need to be quarantined will be compensated for up to two weeks.
The news had a positive impact on the stock price, only dipping 5% in value on a day in which Amazon’s competitors such as Shopify (NYSE:SHOP) and MercadoLibre (NASDAQ:MELI) lost 17% and 13% respectively. The news of Bezos’ hiring spree plays as a reminder that not all stocks are in peril through this tumultuous time. Some of our favorite stay at home stocks like Slack (NYSE:WORK), Netflix (NASDAQ:NFLX), Zoom (NASDAQ:ZM), and Teladoc (NYSE:TDOC) will all see an uptick in users as people are forced to remain in the confines of their homes. Much like these businesses, opportunities will arise for investors too.
We find ourselves in the midst of unprecedented times, but that does not mean we forget everything we know about investing. Isn’t the trick to buy low and sell high? I urge you, don’t panic, keep your head while chaos reigns, and if you need reassurance, let our six golden rules of investing guide you in these tumultuous times.
MyWallSt operates a full disclosure policy. MyWallSt staff currently hold positions in Slack, Amazon, MercadoLibre, and Shopify. Read our full disclosure policy here.