Digital retailer and cloud service provider Amazon.com, Inc (NASDAQ: AMZN) has announced its efforts to support Americans in times of need during the current pandemic crisis. The company reveals that since the onset of the coronavirus pandemic, it has shipped about six million pounds of food to those in need, and it has also confirmed plans to continue these deliveries over the summer months.
Amazon plans to deliver an additional million meals to families, seniors, and other needy Americans
According to the details, since the pandemic began, Amazon has delivered about seven million pounds of food to 25 cities. The service has ensured that food banks do not run out of stock, and the company’s vans also deliver food directly to customers’ homes. These deliveries were made through the company’s Flex networks and Amazon has also collaborated with its other delivery partners.
Delivery services began in March when the company launched the initiative, supplying food, masks and appliances to the school systems of Portland, Seattle and Los Angeles. They are part of the $ 100 million relief effort to protect those most affected by the currently ongoing pandemic-related economic disruption in the United States, Japan, Australia and Europe.
In addition to cities in the United States, Amazon has provided food to people in Melbourne, Tokyo, Madrid, Valencia and London; after working with a British charity to deliver breakfast through schools to children at risk of the pandemic.
The company also plans to deliver another million meals during August, bringing the total number of meals to seven million. Some U.S. cities covered by Amazon’s meal delivery service are Phoenix, Miami, Orlando, Cincinnati, and Houston.
Today’s announcement comes as we move towards the company’s earnings for the second quarter of 2020. Analyst across the board expects Amazon to achieve revenue growth, but due to the higher costs of coping with increasing demand for its retail and cloud services, this is not expected to translate into significant bottom-line growth.
The stock market has expressed optimism about the company’s present and future as Amazon shares are now consistently trading above the $ 3,000 / share price. Amazon’s target price (actual value of its stock according to analyst calculations) is experiencing consistent upward trends, with the most recent increase coming from Telsey Advisory Group. Telsey’s new price target of $ 3,800 / share reflects its optimism about the demand for essentials and other products – a question that it thinks goes straight into Amazon’s lap.
Amazon’s cloud services division Amazon Web Services (AWS) has also seen more business spending during the quarter as investment and consumer bank HSBC and other companies increase cloud computing dependency for business and consumer needs. AWS revenues will be a critical topic of discussion in the company’s upcoming earnings release as Microsoft Corporation’s Azure cloud platform slowed its growth during the company’s most recent quarter.