Amazon.com (AMZN) is in positive territory Thursday after the e-commerce giant announced its largest-ever investment in pay and benefits for its fulfillment and transportation employees. The increased pay rate will bring the average compensation package for these employees to more than $29 per hour.
"In 2018, we led the industry in increasing our starting wage to $15 per hour – more than double the federal minimum wage," said Amazon Vice President of Worldwide Operations Udit Madan in the press release.
The executive added that Amazon has continued to increase the starting wage each year since then. This newest increase reflects at least an additional $1.50 per hour for the front-line team, "which will bring their average base wage to more than $22 per hour and average total compensation to more than $29 per hour when you include the value of their elected benefits."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In addition to the pay increase, the company will begin providing its hourly employees with a free Amazon Prime membership.
"Our front-line team members across our operations are a big part in bringing the magic of Prime to customers, and starting early next year, Prime will become part of their benefits package," Madan said. "Hourly team members in the U.S. will get Prime at no additional cost for as long as they are a part of the Amazon team."
Is Amazon stock a buy, sell or hold?
Amazon has been one of the best Dow Jones stocks this year, up more than 24%. Unsurprisingly, it also remains one of the top S&P 500 stocks to buy.
According to S&P Global Market Intelligence, the average analyst target price for AMZN stock is $219.41, representing implied upside of roughly 16% to current levels. Additionally, the consensus recommendation is a Strong Buy.
Financial services firm Truist Securities is one of those with a bullish outlook on the blue chip stock, as evidenced by its Buy rating and above-average $230 price target.
"While the stock is not cheap on a relative basis, it is fundamentally compelling, in our view," wrote Truist Securities analyst Youssef Squali in an early September note. "We find management's maniacal focus on the customer (by focusing on selection/price/ convenience) and its leveraging of technology innovation to disrupt commerce, entertainment and IT services, to be strong differentiators and sustainable competitive advantages."
Related Content
-
Retire in Costa Rica With These Three Tax BenefitsRetirement Taxes Costa Rica may be a good place for retirement if you like the low cost of living and savings for your heirs.
-
Five Ways to Ease Caregiver StressCaregiver stress is real. Here are five techniques to protect your health and happiness while caring for a loved one.
-
Financial Strategies Borrowed From the Big Game's PlaybookLike the best football teams, you can win at financial planning by executing a strategy, making halftime adjustments and staying focused on the ultimate prize.
-
Three Ways to Plan Now for a Social Security Shortfall LaterThe outlook for Social Security is gloomy, but you can save now to protect against benefit cuts later. If the cuts don't happen, you'll still be better off.
-
Is It Too Late to Invest in Bitcoin?The price of the world's No. 1 cryptocurrency recently surpassed $100,000 for the first time. Is it too late to invest in bitcoin?
-
Extra Cash? Should You Pay Off Debt or Invest?Depending on your financial situation, you might benefit from paying off debt, investing or both. Here are some things to consider before deciding.
-
The Future of 1031 Exchanges Under Trump Looks BrightAs a real estate investor himself, President Trump appears poised to preserve the tax-deferring power of this strategy. But you still must follow the rules.
-
Gambling vs Investing: How to Tell the DifferenceIt's easy to get caught up in the excitement of placing a bet on the Big Game, but beware of letting that emotion drive your investing decisions.
-
Stock Market Today: Stocks Swing Lower as Inflation Fears RiseThe latest consumer sentiment data showed near-term inflation expectations rose to their highest level since November 2023.
-
January Jobs Report Keeps Rates on Pause: What the Experts Are SayingJobs Report Solid labor market conditions point to the Fed maintaining a cautious stance on borrowing costs.
