Amazon (AMZN) has come under fire in recent months following a scathing article in The New York Times that claimed the company was “conducting an experiment in how far it can push white-collar workers to get them to achieve its ever-expanding ambitions.” AMZN stock dipped a few days after the article came out — keep in mind this was in the midst of the severe August sell-off — but has been on a tear ever since.
The company reported third-quarter results on October 22, sending shares sharply higher. AMZN stock climbed to a new all-time high of $619.45 the following day, and has been steadily trading in that space since.
Amazon blew past analyst estimates in its quarterly release, with earnings of $0.17 a share beating by $0.04 on revenue that increased 23% to $25.36 billion, also ahead of expectations of $24.91 billion. To put this into context, the company reported a loss of $0.95 per share in the third quarter of 2014.
Management also provided strong fourth-quarter guidance, with revenue expected of $33.5 billion-$36.75 billion, representing 14%-25% year-over-year growth.
But, one thing that really stood out to me, especially in light of The New York Times’ article, is that Amazon also announced it will be hiring 100,000 seasonal workers this year. Sure, these may be back-busting and “bruising” jobs, but I say bless them. Maybe it’s time for more companies to push their workers, both white and blue collar.
Amazon Is No. 1 Because Its Employees Actually Work
I was so upset when The New York Times article came out over the summer. People already know when they walk into a job with Amazon that it’s going to be tough work. Nobody is surprised that it’s going to be a bit “bruising.” And honestly, I’m not sure I see an issue with that.
In that Silicon Valley culture, cushiony benefits like that of Alphabet (GOOGL, GOOG) — onsite healthcare services, unlimited sick leave, paid time off, family days, and even skateboards — have become the norm. But, when I look at what Amazon is doing and what’s also happening at Wal-Mart (WMT), what I see is a company hiring thousands of people.
So really, I think we need more Amazons in the world… not fewer.
This whole The New York Times work/life balance kind of thing is out of whack with reality. If America plans to remain the No. 1 country in the world, I don’t see how this mentality of avoiding hard work is going to, well, work.
Yes, Amazon may be getting attacked for actually making people work, but it won’t be getting any complaints from shareholders. The stock is up nearly 100% so far this year and 20% this month alone.
So what’s my bottom line here? Well, kudos to Amazon.
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