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Amazon (AMZN) to Open New Office in Boston, Add 900 Jobs

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Seattle e-commerce giant, Amazon.com, Inc. (AMZN - Free Report) recently announced its plans of opening a new office in Boston's Fort Point neighborhood.

Additionally, the company will also hire 900 workers.

Coming to the share price performance, we note that in the last one year, Amazon has underperformed the Zacks Internet-Commerce industry. The stock has returned 33.8% compared with the industry’s gain of 48.4%.

Inside the Headlines

Amazon had leased 150,000 square feet of space in a building along the Fort Point Channel to build this new office in Boston. The company envisions the new office to commence operations in 2018.

The move aligns with the Amazon’s motto of providing better services to customers, accommodate rapid growth and leverage the area’s diverse high-technology talent pool. Amazon’s new Boston Amazon office will be near General Electric's new world headquarters, which is still under construction.

New workers will be hired to focus on Alexa voice-activated technology, a vital part of Amazon’s efforts to sell its own personal technology devices, logistics and other business lines.

As of now, Amazon already has locations in Boston's Back Bay neighborhood and Kendall Square in Cambridge. Also, the company has shipping and packaging facilities in Fall River, Everett and Stoughton. 

Bottom Line

Boston is the tech business hub of the U.S. with world-class technology talent. The city is strategically positioned, providing easy access to worldwide markets. As a result, large tech companies from across the country have set up stores in the region. Additionally, the city provides ample scope to enlarge their respective workforce with the availability of professional and loyal expertise.

In a bid to maintain its supremacy, Amazon has been expanding on a global basis. For this, the company is investing more in fulfillment as well as technology and content. Although increased expenses could hurt the company’s bottom line in the near term, we believe these measures are necessary to maintain the company’s dominance in this highly competitive market.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus | Amazon.com, Inc. Quote

Zacks Rank & Stocks to Consider

Currently, Amazon has a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector are Alibaba Group Holding Limited (BABA - Free Report) , PetMed Express, Inc. (PETS - Free Report) and JD.com, Inc. (JD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Alibaba Group Holding Limited delivered a positive earnings surprise of 20.53%, on average, in the trailing four quarters.

PetMed Express delivered a positive earnings surprise of 9.32%, on average, in the trailing four quarters.

JD.com, Inc. delivered a positive earnings surprise of 83.49%, on average, in the trailing four quarters.

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