Amazon.com (AMZN) is in positive territory Thursday after the e-commerce giant announced its largest-ever investment in pay and benefits for its fulfillment and transportation employees. The increased pay rate will bring the average compensation package for these employees to more than $29 per hour.
"In 2018, we led the industry in increasing our starting wage to $15 per hour – more than double the federal minimum wage," said Amazon Vice President of Worldwide Operations Udit Madan in the press release.
The executive added that Amazon has continued to increase the starting wage each year since then. This newest increase reflects at least an additional $1.50 per hour for the front-line team, "which will bring their average base wage to more than $22 per hour and average total compensation to more than $29 per hour when you include the value of their elected benefits."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In addition to the pay increase, the company will begin providing its hourly employees with a free Amazon Prime membership.
"Our front-line team members across our operations are a big part in bringing the magic of Prime to customers, and starting early next year, Prime will become part of their benefits package," Madan said. "Hourly team members in the U.S. will get Prime at no additional cost for as long as they are a part of the Amazon team."
Is Amazon stock a buy, sell or hold?
Amazon has been one of the best Dow Jones stocks this year, up more than 24%. Unsurprisingly, it also remains one of the top S&P 500 stocks to buy.
According to S&P Global Market Intelligence, the average analyst target price for AMZN stock is $219.41, representing implied upside of roughly 16% to current levels. Additionally, the consensus recommendation is a Strong Buy.
Financial services firm Truist Securities is one of those with a bullish outlook on the blue chip stock, as evidenced by its Buy rating and above-average $230 price target.
"While the stock is not cheap on a relative basis, it is fundamentally compelling, in our view," wrote Truist Securities analyst Youssef Squali in an early September note. "We find management's maniacal focus on the customer (by focusing on selection/price/ convenience) and its leveraging of technology innovation to disrupt commerce, entertainment and IT services, to be strong differentiators and sustainable competitive advantages."
Related Content
-
How This Vanguard Emerging Markets Bond Fund Outperforms Its PeersThe Vanguard Emerging Markets Bond Fund took a cautious positioning at the start of the year, which has helped it beat the majority of its peers.
-
New Rules are Shaking Up the Real Estate Market. Here's What You Need to KnowBuyers and sellers have more room to negotiate commissions, and that could reduce home prices over the long run.
-
How This Vanguard Emerging Markets Bond Fund Outperforms Its Peers
The Vanguard Emerging Markets Bond Fund took a cautious positioning at the start of the year, which has helped it beat the majority of its peers.
-
Five Windows of Opportunity for Roth ConversionsWhen you convert a traditional IRA to a Roth IRA matters if you want to limit how much you pay in taxes.
-
Stock Market Today: Stocks Rise After Strong September Jobs ReportStocks were choppy Thursday as investors took in a higher-than-expected rise in jobless claims and strong growth in the services sector.
-
Strong September Jobs Report Puts Soft Landing in Sight: What the Experts Are SayingJobs Report A blowout reading on nonfarm payrolls takes another jumbo-sized cut to interest rates off the table.
-
Spirit Airlines Stock Plunges on Bankruptcy Buzz: What to KnowSpirit Airlines is one of the worst stocks Friday as reports swirl that the discount airline could file for bankruptcy.
-
Rivian Stock Sinks on Deliveries Miss, Production OutlookRivian stock is spiraling Friday after the EV maker reported dismal Q3 deliveries and cut its production outlook for the year. Here's what you need to know.
-
Tesla's Robotaxi Event: What Wall Street ExpectsTesla’s robotaxi event kicks off next week. Here’s what Wall Street expects to see and how analysts feel about the stock heading into the event.
-
Election 2024: Politics and Your PortfolioWho wins the White House matters — but only at the margins when it comes to your investment portfolio.
