Amazon Stock Rallied Today -- Here's Why Now Might Be the Time to Buy
Shares of Amazon.com (NASDAQ: AMZN) climbed on Thursday, following bullish remarks from the e-commerce-titan's leadership and better-than-expected consumer-spending figures. As of 2:33 p.m. ET, Amazon's stock price was up nearly 5%.
Like many retailers, Amazon's profits have been dented by coronavirus-related supply chain disruptions and geopolitical-driven energy price increases. Higher product, freight, and fuel costs are ongoing challenges.
At the same time, Amazon is dealing with an excess of fulfillment capacity. The e-commerce giant invested tens of billions of dollars to build warehouses and other distribution centers to meet the torrid demand from online shoppers during the early stages of the pandemic. But with e-commerce sales slowing as more people return to traditional retail stores, Amazon now finds itself with too much warehouse space.
Source Fool.com
