Amazon (AMZN) raised wages by 17%... but stock price shows 'warning signs' of weakness

▲ Amazon (AMZN)/AI generated image

Amazon.com (Amazon, AMZN) significantly expanded wages and benefits for its U.S. frontline employees, but its stock price continued a bearish trend below the short-term moving average.

According to Benzinga on September 16 (local time), Amazon will raise the minimum starting wage for full-time frontline employees in the U.S. by $1 per hour to $20. The average wage will increase to approximately $24 per hour, and total compensation, including benefits, will exceed $32 per hour. Amazon stated that starting wages have risen by over 17% in the past three years and that it operates a tiered increase system where wages increase annually for three years after joining.

Employee financial benefits will also be expanded. Amazon is introducing Day 1 Financial in partnership with First Tech Federal Credit Union. Eligible employees, their spouses, and children can open checking and savings accounts without a credit history. There are no overdraft fees, monthly fees, or minimum balance requirements. External ATM fees are reimbursed up to $300 annually, and features to help build credit and save for emergencies are also provided.

Grocery discount benefits are also being strengthened. Starting October 1, Amazon will offer a 10% discount on eligible items purchased by employees on Amazon.com or the Whole Foods Market website. If purchased directly at Whole Foods Market stores, the discount rate increases to 20%. There is no purchase limit on eligible online discounted items.

The stock price trend showed short-term bearish signals. Benzinga analyzed that Amazon's stock price is below the 20-day, 50-day, and 100-day moving averages but remains above the 200-day moving average. This indicates that while short-term upward momentum has weakened, the long-term trend has not completely collapsed. The Moving Average Convergence Divergence (MACD) indicator is also below the signal line, and the histogram is negative, suggesting that buying momentum has slowed compared to the previous upward phase.

Benzinga suggested $267.5 as a key resistance level and $226 as a crucial support level. It analyzed that a rebound could be constrained at $267.5, which is higher than the area where short-term moving averages converged, and if the correction deepens, $226, where buying interest has historically emerged, could act as an important defense line.

[Key Article Summary]

-Amazon is raising the minimum starting wage for full-time frontline employees in the U.S. to $20 per hour and the average wage to approximately $24.

-Total compensation, including benefits, exceeds $32 per hour, and financial services and grocery discount benefits are also being expanded.

-Amazon's stock price remains below short-term moving averages, and Benzinga suggests $267.5 as resistance and $226 as support.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*