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Amazon (AMZN) Soon to Add Over 2,500 Jobs in New Jersey

Amazon.com Inc.AMZN , the world's largest online retailer plans to hire new workers in New Jersey in the near future.

Over the last one year, the stock has outperformed the Zacks Electronic Commerce industry. It has returned 43.31% compared with the industry's gain of 35.09%.

The company said that it will add more than 2,500 full-time jobs to meet increasing demand for its products, thereby further expanding its footprint in New Jersey.

Reportedly, most of the recruitment will be at new fulfillment centers. As per NJ.com, the new positions, which come with full benefits, include both entry-level work and more skilled jobs, such as engineers and software developers.

The news comes on the heels of the company's announcement that it will create about 100,000 full-time, full-benefit domestic jobs in the next 18 months.

Continuous New Recruitments

Over the last five years, the online retailer has added 150,000 employees to its U.S. workforce. This resulted in a total of 180,000 employees by the end of 2016.

The new recruitment makes sense as the company prepares to open new fulfillment centers across the nation and continues to invest in logistics, cloud computing and machine learning.

Bottom Line

Competition in online retail is heating up. Traditional retailers have always given cut-throat competition and the majority of them are running websites as well. The increased use of Internet in both developed and developing economies is attracting other players to the space. Therefore the company has always been making heavy investments to maintain its lead in the e-commerce race.

These investments have definitely raised questions over the company's profitability potential, as it has been missing its earnings over the last few quarters.

However, we believe that this concern is short term in nature. Through these significant investments, Amazon is preparing well in advance for long-term competitive advantage.

The company is slated to report fourth-quarter 2016 results on Jan 26.

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 industry are Mercadolibre, Inc. MELI sporting a Zacks Rank #1 (Strong Buy), and Cognex Corporation CGNX and Itron, Inc. ITRI carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Mercadolibre delivered a positive earnings surprise of 23.58% on average in the past four quarters.

Cognex posted a positive earnings surprise of 24.92% in the trailing four quarters.

Itron posted a positive earnings surprise of 30.55% in the trailing four quarters.

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Amazon.com, Inc. (AMZN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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