- 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.
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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0900 as Q1 comes to an end
EUR/USD has lost its traction and declined below 1.0900 in the American session on Friday. Quarter-end flows seem to be allowing the US Dollar find some demand but the risk-positive market environment seems to be limiting the pair's downside ahead of the weekend.
GBP/USD trades below 1.2400, looks to post weekly gains
GBP/USD has edged lower after having tested 1.2400 earlier in the day but remains on track to end the third straight week in positive territory. The upbeat mood remains intact after soft PCE inflation data from the US, making it difficult for the US Dollar to continue to gather strength.
Gold tries to stabilize near $1,980 following earlier spike
Gold price has returned to the $1,980 area following a spike above $1,987 with the initial reaction to lower-than-expected PCE inflation figures from the US. Meanwhile, the benchmark 10-year US Treasury bond yield stays in the red near 3.5%, providing support to XAU/USD.
Will Dogecoin price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. The recent recovery above the range low looks promising and hints at an explosive move for next week.
Week ahead – Nonfarm payrolls to set the tone for US dollar
With the banking turmoil receding, market participants will turn their attention back to economic releases. The spotlight will fall on the US employment report.