Amazon shares close lower on Wednesday, company invests $100 million in new sites in Mexico

Amazon.com Inc (AMZN) disclosed on Thursday a $100 million investment in the establishment of new warehouses in Mexico, as it seeks to ensure more rapid deliveries.

The new sites actually include 2 fulfillment centers near the cities of Monterrey and Guadalajara and 1 support building in the State of Mexico.

Amazon shares closed lower for the sixth time in the past ten trading sessions on NASDAQ on Wednesday. The stock went down 1.00% ($32.07) to $3,184.94, after touching an intraday low at $3,160.00, or a price level not seen since October 16th ($3,160.00).

Shares of Amazon.com Inc have risen 72.36% so far in 2020 compared with a 6.34% gain for the benchmark index, S&P 500 (SPX).

In 2019, Amazon’s stock went up 23.03%, thus, it underperformed the S&P 500, which registered a 28.88% gain.

Together the new facilities take up to 69,000 square meters and are expected to create 1,500 direct and indirect job positions.

The e-commerce giant has also opened 12 delivery stations, meaning it now has a total of 27 facilities across Mexico. It also operates 5 fulfillment centers, 2 support buildings and 2 classification centers in the country.

“The construction of a solid infrastructure network allows the company to stay closer than ever to clients, and thanks to that, it’s possible to offer fast deliveries,” Amazon.com Inc said in a statement, cited by Reuters.

Analyst stock price forecast and recommendation

According to CNN Money, the 45 analysts, offering 12-month forecasts regarding Amazon.com Inc’s stock price, have a median target of $3,700.00, with a high estimate of $4,500.00 and a low estimate of $2,646.00. The median estimate represents a 16.17% upside compared to the closing price of $3,184.94 on October 21st.

The same media also reported that at least 42 out of 48 surveyed investment analysts had rated Amazon.com Inc’s stock as “Buy”, while 2 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News