Baird Top Analyst Sees, Inc. (AMZN) Push to Add 100,000 Full-Time Jobs by Mid-2018 as Positive

Yesterday morning,, Inc. (NASDAQ:AMZN) announced plans to increase the size of its domestic workforce by an added 100,000 full-time jobs by the middle of 2018, putting the company’s workforce at over 280,000 employees within the next 1.5 years. Top analyst Colin Sebastian at Baird views the hiring push as a “positive signal” and reiterates an Outperform rating on shares of AMZN with an $850 price target, which represents a 4% increase from where the stock is currently trading.

Sebastian believes, “As the growth in Amazon hiring appears to be accelerating, we view this announcement positively in terms of the current trajectory of Amazon’s businesses, as well as management’s confidence in the long-term outlook. We also note that hiring is consistent with our view that Amazon will continue to invest aggressively in its retail, media, technology and logistics businesses, rather than focusing on margin improvement.”

Regarding the potential Trump factor to take in account, the analyst remains unfazed, explaining, “While there may be some ‘political capital’ involved with the timing and details of Amazon’s announcement given the President-elect’s negative comments regarding Amazon during the campaign, we suspect there is little, if any, shift of employment at Amazon from international locations to the U.S. Moreover, we expect the pace of hiring internationally to accelerate as well.”

As the e-commerce and online auction leader continues its “commitment” to cloud technology and machine learning, Sebastian concludes by underscoring technology’s dominance over the roles available. With Amazon’s growth accelerating, this top analyst remains bullish on the stock’s prospects.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Colin Sebastian has achieved a high ranking of #22 out of 4,340 analysts. Sebastian upholds a 74% success rate and garners 17.2% in his annual returns. When recommending AMZN, Sebastian gains 37.4% in average profits on the stock.

TipRanks analytics exhibit AMZN as a Strong Buy. Out of 32 analysts polled by TipRanks in the last 3 months, 30 are bullish on Amazon stock, while 2 remain sidelined. With a return potential of 17%, the stock’s consensus target price stands at $953.48.

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