Why Amazon.com stock just popped

Amazon proposes a partnership with the U.S. government.

| More on:
amazon.com stock represented by man holding parcel printed with amazon logo

Image source: Amazon.com

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

In a late-breaking development, GeekWire just reported that Amazon.com Inc (NASDAQ: AMZN) has delivered a letter to new US President Joe Biden offering "to assist you in reaching your goal of vaccinating 100 million Americans in the first 100 days of your administration."  

By 3 p.m. EST, Amazon.com stock had jumped 4.9% in response.

So what

In the letter, Amazon Worldwide Consumer CEO Dave Clark reminded the president that Amazon.com is "the nation's second largest employer" with "over 800,000 employees in the United States, most of whom are essential workers."

Clark advised that Amazon has already hired a licensed third-party healthcare provider to administer vaccines on-site at Amazon facilities, and is "prepared to move quickly" to immunize the employees "once vaccines are available." Amazon also says, though, that it is "prepared to leverage our operations, information technology, and communications capabilities and expertise to assist your administration's vaccination efforts."

Now what

Clark did not specifically state in his letter that he wants to use Amazon's facilities, its workforce, or its relationship with the unnamed healthcare provider to administer vaccines to the populace in general, or to help distribute the vaccine to other locales -- although this seems to be implied, and may be something he would offer if the president follows up on his invitation.

At the very least, Amazon seems to be promising to help the new administration get off to a good first start with as many as 800,000 willing vaccine recipients. In so doing, Amazon could lower its own worker safety costs by reducing the incidence of COVID-19 at its stores and warehouses, where more than 19,000 workers have already tested positive over the course of the pandemic.

And if the president takes Amazon up on its implied promise to take an active role in rolling out vaccines across the nation? That could mean contracts and government money for Amazon, which would be an even bigger boon for the stock.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Should you invest $1,000 in Appen Limited right now?

Before you buy Appen Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Appen Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Rich Smith has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on International Stock News

A man looking at his laptop and thinking.
International Stock News

With Warren Buffett stepping down as CEO, will Berkshire Hathaway sell Apple stock?

Or will it find something else to invest in? Let's take a look.

Read more »

Man on his laptop standing next to data centres.
International Stock News

History says now is the time to buy Nvidia stock

History doesn't normally repeat itself, but it often rhymes.

Read more »

Woman relaxing and using her Apple device
International Stock News

16 words from Warren Buffett that should have Apple stock investors excited

Let's see what Buffett had to say and what it means for investors.

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
International Stock News

Prediction: Warren Buffett may be shifting out of his Berkshire Hathaway CEO role, but he's not done investing

Let's take a closer look at what may be ahead.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
International Stock News

Here's why I'm not too worried for Alphabet despite Apple's potential new AI-powered Safari search

Investors panicked when the possibility was floated, but take a step back and look at the bigger picture.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
International Stock News

Should you buy Nvidia before May 19?

Nvidia has been firing on all cylinders, and we may have a chance to hear more about this top AI…

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
International Stock News

Should investors be concerned about Berkshire Hathaway's record $348 billion cash position and third consecutive quarter of no stock buybacks?

Here's what the treasure trove of cash and lack of buybacks signal, and if Berkshire is still an excellent value…

Read more »

Woman in business suit holds both hands out with a question mark above each hand.
International Stock News

AMD vs. Nvidia: Which artificial intelligence stock should you buy on the dip?

Which of these two chip stocks is the better option right now?

Read more »