Amazon.com Inc. (AMZN), one of the largest companies in the world, is a global leader in e-commerce and cloud computing. The company operates an online marketplace offering a wide range of products, mostly from third-party merchants, including electronics, clothing, furniture, food and toys. It also offers video and music streaming services. Amazon’s cloud services platform hosts online applications for a wide range of customers.
Amazon was founded in 1994 and started as an online bookstore. But its founder and former CEO (Chief Executive Officer), Jeff Bezos, envisioned Amazon as more than just an online retailer. Instead, Bezos saw Amazon as a technology company whose competitive advantage was simplifying online transactions for consumers. Amazon shares began trading after an initial public offering (IPO) in May 1997. Its shares are listed on the Nasdaq Global Select Market.
Amazon has long been based in Seattle. In 2018, it unveiled plans for a “second headquarters” in Arlington, Virginia, to open in 2023. Andy Jassy has been the CEO of the e-commerce giant since he replaced Bezos in July 2021. Bezos remains executive chairman. Amazon is grouped with consumer stocks for investment purposes, although it is also included in many mutual and exchange traded funds focused on the technology sector to recognize Amazon Web Services’ (AWS) status as a leading cloud computing provider. The the company’s main competitors include brick-and-mortar retailers such as Walmart Inc. (WMT), operator of the e-commerce platform eBay Inc. (EBAY) and cloud computing services compete with Microsoft Corp. (MSFT) and Alphabet Inc. (GOOGLE). Amazon reported net income of $33.4 billion on net sales of $469.8 billion in fiscal 2021, which ended on December 31, 2021.
- Amazon is an online retailer, streaming service provider and cloud computing provider.
- Amazon’s competitors include Walmart, eBay, Microsoft and Google parent Alphabet.
- Amazon earned net income of $33.4 billion on net sales of $469.8 billion in fiscal 2021.
- On November 16, 2022, Amazon officially confirmed that it was laying off 10,000 employees.
Amazon’s latest development
November 14, 2022 reports have leaked that Amazon is planning layoffs 10,000 employees or 3% of its corporate workforce. She officially confirmed it on November 16.
What is happening with Amazon Union votes?
On April 1, 2022, workers at Amazon’s JFK8 warehouse in Staten Island, New York elected the recently formed Amazon Labor Union to represent them in collective bargainingthe first successful union effort at an Amazon facility. On April 10, 2022, Amazon filed a motion with the National Labor Relations Board (NLRB) asking it to overturn the Staten Island election results, alleging legal violations by union supporters and pro-union bias by the NLRB regional office. On April 9, 2022, the NLRB said workers at an Amazon warehouse in Alabama were denied union representation on March 31 in a runoff election because the NLRB ruled the company improperly interfered in the first ballot. On April 18, 2022, an administrative law a judge ruled that Amazon illegally fired an Amazon union worker from his job at a Staten Island warehouse in 2020 in retaliation for protected organizing activities. On April 25, 2022, workers at Amazon’s second Staten Island warehouse began voting for union representation. However, the effort to unionize the Staten Island warehouse failed, with 618 workers voting against unionization and 380 voting in favor, according to results released by the National Labor Board announced on May 2, 2022.
What happens to Amazon product recalls?
In mid-July 2021, the US Consumer Product Safety Commission (CPSC) sued Amazon to force it to recall unsafe products sold on its marketplace by independent merchants. The products included 24,000 faulty carbon monoxide detectors, 400,000 hair dryers sold without required immersion protectors to protect against the risk of electric shock, and an unspecified number of children’s sleepwear that did not meet mandatory flammability standards. While Amazon removed some listings of unsafe products, warned buyers that they posed a danger, and offered refunds in the form of an Amazon gift card, it failed to meet all of the CPSC’s requirements for product distributors, including issuing an agency-approved recall notice that specified the dangers, tracking product returns and documented the destruction of unsafe products, Amazon claimed that it was an outside logistics contractor exempt from CPSC distributor rules. On January 19, 2022, an administrative law judge ruled that Amazon must comply with the CPSC’s distributor rules because it handles functions that qualify it as such, including product return decisions and consumer refunds.
What’s up with the antitrust lawsuits against Amazon?
On March 18, 2022, U.S. Supreme Court Justice Cout dismissed an antitrust lawsuit filed against Amazon by the Attorney General for the District of Columbia, ruling that the lawsuit failed to show that Amazon’s agreements with third-party merchants obliging them to price their products no higher than Amazon serves elsewhere to increase consumer prices. On April 13, 2022, the Attorney General for the District of Columbia requested reconsideration of the ruling, arguing that the agreements allow Amazon to charge higher fees for third-party listings than other online marketplaces because merchants cannot pass on the lower fees for listings. to consumers.
On March 11, 2022, a US District Court judge in the state of Washington refused to dismiss a class action lawsuit against Amazon over the same “most preferred nation” pricing rules brought in by two frequent Amazon shoppers and several law firms.
What’s going on with Amazon’s acquisition of MGM?
On March 17, 2022, Amazon said it had completed its $8.45 billion acquisition of MGM, along with a catalog of more than 4,000 movies and 17,000 TV shows. MGM was not the same company as MGM Resorts International (MGM).
The acquisition, announced on May 26, 2021, was Amazon’s second largest after its $13.7 billion deal for Whole Foods in 2017 and will allow the company to expand its video streaming offerings. The Federal Trade Commission (FTC)which scrutinized the deal reportedly did not try to block it because its four commissioners were divided along party lines on the issue.
Frequently asked questions
Has AMZN ever split its stock?
Amazon has split its stock four times, as follows. The first three stock splits occurred within the first two years as a public company, and the fourth more than 20 years later. as follows:
- June 2, 1998: 2-for-1 split.
- January 5, 1999: 3-to-1 split.
- September 1, 1999: 2-for-1 split.
- June 3, 2022: 20 to 1 split.
Does AMZN Pay a Dividend?
No, it does not pay a dividend.
How many shares of AMZN stock are there?
As of October 19, 2022, Amazon had 10.2 billion shares outstanding.
Who is the CEO of Amazon?
Andy Jassy, who replaced founder Jeff Bezos on July 5, 2021. Jassy is also on the board where Bezos is executive chairman. Jassy founded AWS, Amazon’s highly profitable and fast-growing cloud computing platform. He was the CEO of AWS from April 2016 to July 2021. Jassy has been with Amazon since 1997.
What is Amazon Prime Day?
Amazon Prime Day is Amazon’s big annual sales event for Amazon Prime subscribers. In 2021, Amazon held its Prime Day event on June 21-22, offering discounts on more than 2 million product items.