Amazon Stock News: AMZN unperturbed as threat of strikes fails to sink shares on Black Friday

Amazon is facing possible worker strikes on Black Friday.
A union movement called Make Amazon Pay is leading the charge.
AMZN stock is trading flat in Friday’s premarket.
Amazon CEO Andy Jassy announced up to 10,000 layoffs in mid-November.

Clay Webster FXStreet

Amazon (AMZN) stock is trading flat in the leadup to Friday’s shortened market session despite lots of news surrounding planned worker strikes at warehouses owned by the world’s largest e-commerce retailer. Limited trading is expected as main United States stock markets (S&P500, Nasdaq and Dow Jones) will just be open until 6pm GMT (1pm EST) due to the partial holiday.

Amazon stock news: Make Amazon Pay announces work stoppages in 40 countries

The Make Amazon Pay protest movement is focused on several separate complaints against the online retailer but particularly is focused on low pay. The movement’s website says that Amazon wages are failing to keep pace with inflation, an allegation that is hard to verify. Additionally, it says that Amazon’s carbon footprint rose 18% in 2021 and that it failed to pay any income tax in Europe in that year.

“We are workers and citizens divided by geography and our role in the global economy but united in our commitment to Make Amazon Pay fair wages, its taxes and for its impact on the planet,” the group said in a statement. “Amazon can afford to pay, but only will if we make it. That’s why we are rising up all around the world on Black Friday, 25 November 2022 to turn it into Make Amazon Pay day.”

In order to bring light to these complaints, Make Amazon Pay said that walkouts and work stoppages at Amazon warehouses will take place across 40 countries on Black Friday. It is uncertain how much this would affect Amazon operations as the retailer owns few physical stores outside of its Whole Foods unit. After closing 68 brick-and-mortar locations in early 2022, Amazon now has closer to 30 Amazon Go stores in operation.

Of course, the walkouts could push back delivery times at its warehouses, and shoppers do still look for online deals on Black Friday, the nation’s biggest shopping day of the year. Amazon did announce as much as 10,000 job cuts two weeks ago, but those layoffs were largely targeting corporate and technology positions rather than the largely blue-collar workers thought to be taking part in the walkouts.

“Our annual planning process extends into the new year, which means there will be more role reductions as leaders continue to make adjustments,” wrote CEO Andy Jassy in a letter in mid-November to Amazon employees. “Those decisions will be shared with impacted employees and organizations early in 2023.”

Amazon stock forecast

Amazon stock will likely remain stuck in neutral throughout Friday’s shortened session, but expect Amazon to capitalize on positive news next week concerning sales data stemming from Black Friday. Of course, the walkouts may put a blemish on any positive news, depending on how long they last and how much media coverage they engender.

Resistance for AMZN stock sits nearby above $96 where the 9-day moving average appears ready to overtake its 21-day counterpart. A break above both of these moving averages would likely turn the heads of Nasdaq-focused traders. From here, Amazon stock would quickly find itself in the once strong demand zone between $101 and $109.50. This area supported the AMZN price for most of late 2022 until the share price moved below it in late October. Breaking out of this zone could eventually propel shares up to the resistance level at $121, last reached on October 25.

Support remains at $86, as well as the covid low at $81.30.

AMZN 1-day chart

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

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