Amazon: expenses 'creeping up,' broker says

(CercleFinance.com) - Jefferies maintains its "buy" rating on Amazon, with a price target of 2,300 dollars, as the COVID-19 outbreak is causing a major shift in buying to online retailers.


When focusing on the delivery of essentials, the Seattle based tech giant is doing the "right thing" from a business and social perspective, but this raises the risk of missed expectations, the broker said.

Jefferies is worried to see the company's expenses "creeping up" as the group is now using temporary raises in regular pay and overtime pay to keep up with the labor it needs in this time of crisis.

Amazon has already said that its regular pay increase is expected to add 350 million dollars to costs, Jefferies pointed out. Additional temp hires would raise costs too, it noted.

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