3 Factors That Will Accelerate Amazon Stock's Growth in 2021!

  3 Factors That Will Accelerate Amazon Stock's Growth in 2021! Amazon Had a Great Year in 2020, Has a Good Chance to Carry That Momentum into 2021 Starting the year on a good start, Amazon AMZN (NASDAQ) $3.505,80 +0,35 (+%0,01) also increased its revenue in the first quarter. Continuing the habits formed after the pandemic is in favor of Amazon, and the increase continues throughout the year. In the US, child loan payments and government financial incentives are expected to continue in July. In addition, it is no longer a secret that companies such as Walmart, Home Depot and Costco will raise their employees' wages. Let's Examine 3 Factors That Will Make Amazon Grow This Year! 1-Continuation of Incentives Families with children younger than 17 will receive $250-300 benefits, while those with younger children will receive more. It is obvious that these aids will increase consumption and contribute to GDP. While this is the case, it is almost certain that some of these expenditures will definitely go to amazon.com. 2-Accelerating Inflation The consumer price index, which was found to have increased by 5 % in May compared to the previous year, has made the biggest increase since 2008. Because Amazon sells on commission, the increase in prices is very likely to increase Amazon's revenue as well.

Amazon Had a Great Year in 2020, Has a Good Chance to Carry That Momentum into 2021

In addition, Amazon may make small price increases on its own, since it also sells its own products. Others can take advantage of this situation to create a favorable environment for raising prices. 3- Increase in wages Government incentives will lead consumers to spend more in the second half of 2021. Areas recovering from the pandemic are experiencing an incredible increase in demand as people are slowly leaving their homes. Despite everything, persistent fears also reduce people's desire to enter the workforce to some extent. This situation, which is thought to be temporary, will accelerate the return of the workforce more easily, especially with the opening of schools. With the spread of the vaccine, fears are decreasing day by day, and at the end of September, labor returns will accelerate as unemployment benefits will expire. Investor takeaway Overall, these three factors are projected to drive a 27 % increase in Amazon sales for the remainder of the year.  

Source: The Motley Fool

 

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