Amazon.com Inc. (NASDAQ:AMZN) is one of the most perplexing and impressive tech companies out there. The firm offers an incredible range of services, and is going to be offering a lot more in the future if rumors are to be believed. The firm didn’t make a profit last year because of massive investments into new business. Retail is still the bread and butter at Amazon, however, and signs point to a strong holiday period ahead for the company.
A Citigroup report on Amazon.com Inc. (NASDAQ:AMZN) takes a look at the firm’s hiring heading into the holiday season. The report, which was picked up by Businessweek, sees strong demand for temporary staff at Amazon.com Inc. (NASDAQ:AMZN). That could mean a big holiday season lies ahead for the firm.
Amazon retail outlook
According to Mark May, who authored the Citi report, the large amount of employees the company plans to hire is indicative of expectations that the coming holiday season will be a busy one. Amazon.com Inc. (NASDAQ:AMZN) announced this morning that it was planning on taking on 70,000 seasonal workers across the United States. The number is up 40 percent from last year’s hiring.
As with any retailer, the Christmas period is the most important time for Amazon.com Inc. (NASDAQ:AMZN). It’s when most shopping is done. The company needs the extra labor in order to ensure things go smoothly and packages arrive on time. Today’s announcement shows that Amazon.com Inc (NASDAQ:AMZN) is expecting a large amount of growth.
The seasonal hiring pick up at Amazon.com Inc (NASDAQ:AMZN) outpaced the hiring at traditional retailers by a wide margin. Macy’s plans to take on 83,000 seasonal staff, up just 4 percent from last year. May reckons Amazon.com Inc. (NASDAQ:AMZN) will grow revenues by around 20 percent over last year’s fourth quarter.
Revenue, not earnings at Amazon.com
Amazon.com Inc. (NASDAQ:AMZN) is still in its growth phase. The company’s CEO Jeff Bezos has echoed that culture by saying that margins are not important at the company. For Amazon it is revenue expansion rather than earnings that count. Last year, analysts expected the company to make a slim profit. It ended the year with a 9 cent per share loss instead.
This year looks different for Amazon.com Inc. (NASDAQ:AMZN). The firm is expected to earn 87 cents per share. Amazon.com Inc. (NASDAQ:AMZN) makes itself difficult to value. May puts a price target of $340 on the shares in his latest report.