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Amazon (AMZN) has recently received a lot of criticism for its extreme delivery commitments. However, it was not the consumers who complained about the delivery, but the employees of the deliveries and the warehouses. They say they are under tremendous pressure to meet deadlines.
Jeff Bezos built the company with a mission focused on the consumer. The one-day delivery option of the ecommerce platform is a huge success and consumer expectations are high. The company's delivery chain has always exceeded customer expectations and news about Amazon Air has been well received in the market.
As a result, recent complaints are disconcerting. Even the US Senate is concerned and is questioning society's respect for labor and safety regulations. This is not the first time that Amazon has been examined.
US Senate raises concerns
The US Senate sent several letters to Jeff Bezos expressing his concerns about Amazon's supply chain and retailers. The first letter, dated August 29, asks the company to clean the allegedly misleading descriptions of the products listed on its platform. Senators suggested strengthening control over third-party retailers and their products.
In its second letter dated September 12, the US Senate raised concerns about third-party suppliers in the delivery chain and the unreasonable standards imposed on Amazon delivery contractors. The Senate states that many subcontractors do not comply with the guidelines of the Ministry of Transport and the Federal Motor Carrier Safety Administration. Amazon must reply to both letters by the end of the month, at which time its stock could be corrected.
Amazon's third quarter initiatives and launches
On September 11, Bezos announced the launch of Amazon's FIRST robotics program at 24 public schools in Nashville. In a promotional video of the program, Bezos encourages children to "build robots".
You may wonder if Bezos is hoping to add robots to his company's delivery chain. The concept surely worked with Amazon Air – with the help of drones, Amazon promises to make deliveries in half an hour.
Another highlight of the company is the launch, on September 12, of Amazon Music in Brazil, whose market offers a multitude of untapped opportunities. The launch of Amazon Music took place two days after the release of Amazon Prime in Brazil.
Amazon Europe is also working on strategic partnerships. Wm. Morrison Supermarkets (MRWSY), a British channel, should combine with Amazon. Morrison is listed on the London Stock Exchange and has already announced promising results. In the first half of this year, pre-tax corporate profits increased by 49%. The partnership with Amazon could do wonders for both companies.
What investors could expect from Amazon stocks
Many analysts believe that Amazon shares are overpriced. Between December 24, 2018 and July 15, Amazon shares rose about 50 percent, from $ 1,343.96 to more than $ 2,020. The stock has been volatile this year as well. On January 3, he was trading at $ 1,500. And at the end of July, the stock fell by more than 200 dollars, from $ 2,000.81 on July 24 to $ 1,765.13 in early August. Over the past month, the stock has averaged about $ 1,800, with spreads of about $ 50. For more analysis, read Amazon Stock: Price Target, Comparative Evaluation to peers.
Bezos has unresolved issues with the Senate, and how these issues could determine Amazon's results for the third quarter. In addition, if regulators imposed sanctions on Amazon companies abroad, their actions could suffer. However, Bezos seems to have found a hedge in the Nashville robotics program, allowing him to earn points. And the next quarter could offer even more opportunities abroad for the company.
Alibaba and Baidu in full expansion
Other technology companies are also developing strategically. According to Reuters, Alibaba (BABA) hopes to increase its presence in the streaming music industry. In addition, China's e-commerce portal has invested heavily in NetEase (NTES). NetEase sold its online platform, Kaola, to Alibaba for $ 2 billion.
Baidu (BIDU) is another Chinese technology company considering investing in a subsidiary. BIDU has made a considerable investment in the company IA Neusoft Holdings. Neusoft has two offices in the United States, one in Houston, Texas, and the other in Morrisville, North Carolina.
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