While the coronavirus pandemic has plunged the global economy into a crisis, Amazon has been one of its biggest beneficiaries. That success has drawn condemnation by more than 400 politicians from around the world, including France, the UK, and the U.S.
World leaders have accused Amazon CEO Jeff Bezos, the world’s richest man, of “acting with impunity” by pocketing profits while “dodging and dismissing [his] debts to workers, societies, and the planet” in a recent scathing open letter.
Rep. Rashida Tlaib (D., Mich.), who represents one of the poorest Congressional districts in the U.S., is among the signatories of the letter and one of Bezos’ chief critics.
“This pandemic has exposed just how broken and wrong it was to allow a man with this amount of wealth to get away with not paying his fair share,” Tlaib told Yahoo Finance.
Amazon (AMZN) paid no U.S. federal income taxes in 2017 and 2018 (largely because of various tax credits and deductions) despite posting income of $3.03 billion and $10.07 billion for each of those years respectively. In 2019, Amazon paid roughly 1.2% or $162 million on $11.59 billion in income.
Amazon’s third-quarter sales increased 37% to $96.1 billion from $70 billion during the same period in 2019 thanks to a pandemic-fueled boost in buying. The giant retailer expects the 2020 holiday season to be its biggest yet, projecting sales between $112 billion and $121 billion in the fourth quarter, an increase of 28% to 38% compared to the same quarter last year. Amazon’s stock is up more than 65% year to date.
Bezos may be proud of the company’s trillion-dollar valuation and growth amid the pandemic, but the 400 signatories of the letter, who include Keith Ellison, Minnesota’s attorney general, and Rep. Ro Khanna (D., Calif.), see “enormous profits” built on the backs of workers who “enter dangerous working conditions, enjoy little or no increase in their pay, and face retaliation for their efforts to defend themselves and organize their colleagues.”
Amazon also asserted that it has “a strong track record of supporting our people, our customers, and our communities, including providing safe working conditions, a $15 minimum wage and great benefits, leading on climate change with the Climate Pledge commitment to be net zero carbon by 2040, and paying more than $5 billion in taxes in 2019.” Amazon’s spokesperson added that the company looks forward to “continued dialogue with interested parties on these topics.”
In response, Tlaib said, “Instead of paying for the media consultants and folks that come up with these statements, I say pay attention to your workers. They are the reason that you are successful and they deserve better.”
Tlaib warned Bezos that the status quo would not hold. “Your plant, your factories, your distribution centers, they’re going to unionize,” she said. “And they’re going to demand what we as lawmakers are demanding of you that you have to pay your fair share. You have to take care of the workers that [are] making you successful, and you can afford it Mr. Bezos.”
The Congresswoman hopes to hold Bezos and other billionaire CEOs accountable for wage inequality within their companies by getting the Tax Excessive CEO Pay Act signed into law under a President Biden administration.
The bill would penalize corporations for giving CEOs “excessive” compensation. For instance, companies with a CEO-to-median-worker pay ratio of 50 to 1 would face a corporate tax rate increase of 0.5%, while those with a ratio of 500 to 1 would see their rate grow by 5%.
Amazon.com, Inc. offers a range of products and services through its Websites.
The Company’s products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It also manufactures and sells electronic devices.
It operates through three segments: North America, International and Amazon Web Services (AWS). Its AWS products include analytics, Amazon Athena, Amazon CloudSearch, Amazon EMR, Amazon Elasticsearch Service, Amazon Kinesis, Amazon Managed Streaming for Apache Kafka, Amazon Redshift, Amazon QuickSight, AWS Data Pipeline, AWS Glue and AWS Lake Formation.
AWS solutions include machine learning, analytics and data lakes, Internet of Things, serverless computing, containers, enterprise applications, and storage. In addition, the Company provides services, such as advertising.
It also offers Amazon Prime, a membership program that includes free shipping, access to streaming of various movies and television (TV) episodes.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 3,368.49.
The projected lower bound is: 2,946.73.
The projected closing price is: 3,157.61.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 5 rising windows in the last 50 candles–this makes the current rising window even more bullish.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 43.6370. This is not an overbought or oversold reading. The last signal was a sell 10 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 50.29. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 70 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.
Rex Takasugi – TD Profile
AMAZON COM closed up 40.550 at 3,156.970. Volume was 12% below average (neutral) and Bollinger Bands were 62% narrower than normal.
Open High Low Close Volume 3,143.000 3,190.470 3,126.000 3,156.970 4,155,794
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 3,158.73 3,183.01 2,793.56 Volatility: 20 42 49 Volume: 3,386,847 4,607,347 5,100,764
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
AMAZON COM gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
AMAZON COM is currently 13.0% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of AMZN.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AMZN.O and have had this outlook for the last 5 periods.