Amazon (AMZN) stock price is rising after the company has announced that its drone delivery fleet was approved by the FAA for trial commercial flights.
The gravity-defying Amazon.com Inc (NASDAQ: AMZN) stock continued to scale higher in the new month, recording its all-time high after every breakout. As of yesterday, Monday the last day of August 2020, Amazon stock closed at $49.16 higher than the opening price, around $3401. Meanwhile, Amazon is one step closer to its drone delivery.
At the time of writing, Amazon stock was up slightly above 1%, trading around $3492. The recent breakout on Amazon share value has come with a heavy price especially during the pandemic.
Led by the current recorded richest man in the world Jeff Bezos, the company has put in place measures to see its business grow amid the market disruption as it takes good care of its employees.
Having withstood the second quarter of the year when the pandemic was at its peak, Amazon seems set to even come out stronger post COVID era. The company might be highly motivated by the increasing competition from global and local companies, especially in the e-commerce sector.
As the company continues to venture out new revenue avenues and improve on the current infrastructure, Amazon leadership faces heightened friction with different jurisdictions’ authorities.
Amazon Stock Future Prospects, New Steps Forward with Company’s Drone Delivery
Having risen over 86% year to date, nearly 40% in the past three months, and jumped 10% in the last month, Amazon’s leadership board is not leaving anything to chance for its future delivery to its shareholders.
According to a Bloomberg report, Amazon has been granted approval by the U.S. Federal Aviation Administration (FAA), which will allow it to start trialing commercial deliveries through its drone system.
The MK27 drones, developed in a way to function independently from human interaction, are expected to be rolled out in delivering maximum 5 lb goods to its customers.
Once rolled out, the drone system will reduce its backlog of unfulfilled deliveries timeline, hence putting it at a better vantage point than its competitors.
In addition, it will assist the company in reducing the fuel run engines in its goal of clean energy consumption.
This will mean the company will be a bigger employer both in the United States and also in the global market. As a result, its sales and revenue will skyrocket which will be a big booster to its current $1.7 trillion market capitalization.
Consequently, with investors gaining more confidence in Amazon stock, its value will shoot even higher.
More news from the stock market can be found here.
Source: Read Full Article