Sundaram: Amazon isn't recession-proof, but it's recession-resilient (2024)

FAQs

Is Amazon recession proof? ›

In a recession, consumers may be more likely to shop online for deals, which could benefit Amazon. On the other hand, it's possible that a recession could negatively impact Amazon's bottom line, as consumers may have less money to spend.

What Does Recession Resistant Mean? An entity that is not significantly affected by recessions is considered recession resistant. Recession resistance can apply to products, companies, jobs, or even industries.

“Recession proof” is a term used to describe an asset, company, industry, or other entity that is believed to be economically resistant to the effects of a recession. Recession-proof stocks are added to investment portfolios to safeguard them against times of economic decline, which may be the onset of a recession.

If Amazon hadn't raised all that money prior to the dot-com bust, its options would have been much more limited. Instead, it was able to absorb losses in its investments in other start-ups and also launch Amazon Marketplace, its platform for third-party sellers, later that year.

The company offers you $5,000 to walk away. Sounds like a great deal, right? The program, called Pay to Quit, offers Amazon workers who aren't committed to their jobs $2,000 in severance pay in the first year of employment, going up to $5,000 in the fourth year.

By being proactive, focusing on efficiency, nurturing customer relationships, and fostering a culture of innovation, you not only endure the economic downturn but can even discover new opportunities in your business.

The best recession stocks include consumer staples, utilities and healthcare companies, all of which produce goods and services that consumers can't do without, no matter how bad the economy gets.

These include physical resilience, mental resilience, emotional resilience and social resilience.

Now, Amazon CEO Andy Jassy has issued a stern warning to employees who refuse to comply with the company guidelines. – Earlier this year,Amazon CEO Andy Jassy, announced that employees would be required to work from the office for at least three days a week.

Although Bezos stepped down from his CEO post at Amazon two years ago, he is still the company's chairman and its largest individual shareholder, with 9.4% of the stock. He sold nearly 12 million shares—a bit over 1% of his 976 million shares in the e-commerce and cloud computing company.

Why did Jeff Bezos give $100 million? ›

Jeff Bezos just gave $100 million to actress Eva Longoria and the retired admiral who oversaw the capture of Osama bin Laden to use as they see fit. Billionaire Jeff Bezos (left) launched the Courage and Civility Award in 2021 to support philanthropists.

Historically, the industries considered to be the most defensive and better placed to fare reasonably during recessions are utilities, health care, and consumer staples.

The Great Recession lasted from roughly 2007 to 2009 in the U.S., although the contagion spread around the world, affecting some economies longer.

Historically, the industries considered to be the most defensive and better placed to fare reasonably during recessions are utilities, health care, and consumer staples.

Amazon.com Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors: 1. The debt burden that the company has as measured by its Interest Coverage (current year).

After posting a loss in 2022, Amazon's earnings bounced back in a big way last year. Now, Wall Street analysts are expecting further earnings growth for 2024. Consensus projections see Amazon's posting adjusted earnings of $4.57 per share for the December 2024 fiscal year, according to FactSet.