Amazon’s share price was down 0.41 percent to close at $1,566.13. TipRanks has a “strong buy” ranking on the stock with a target price of $1,818.49.
Amazon (NASDAQ:AMZN) announced plans on Monday (April 30) to expand its Vancouver Tech Hub with an additional 3,000 jobs in fields including e-commerce technology, cloud computing and machine learning.
The company already employs more than 1,000 researchers and engineers in Vancouver, primarily at its international retail business and Amazon Web Services (AWS).
Across Canada, Amazon currently employs 6,000 people at its Toronto Tech Hub, Vancouver Tech Hub, its AWS infrastructure region in the Montreal area and its customer fulfilment facilities in the provinces of BC and Ontario.
“Amazon is excited to create 3,000 more highly-skilled jobs in Vancouver,” said Alexandre Gagnon, vice president of Amazon Canada and Mexico. “Vancouver is home to an incredibly talented and diverse workforce, and these thousands of new employees will invent on behalf of our customers worldwide.”
In its quarterly results, announced April 26, Amazon credited its increased revenue to growth in its AWS cloud service and advertising business.
The company reported revenue of US$51.04 billion, which is a 43-percent increase from the same time last year. AWS grew 49 percent year-over-year and accounted for US$5.4 billion in revenue, or 11 percent of Amazon’s total revenue.
BC Premier John Horgan said the announcement from Amazon reflects the strength of BC’s economy and the talent in the province.
“We must make sure everyone benefits from the wealth our province creates. Our government will reduce inequality, provide fair conditions for workers, grow and diversify our economy, and open the doors of opportunity for people,” Horgan said in a press release.
Canadian Prime Minister Justin Trudeau was at the event and said he is excited to see Amazon grow in Vancouver.
“Our vibrant cities, which are home to some of the best talent in the world, are poised to attract premier investment that creates the jobs of tomorrow. Canadians share your passion for invention and your commitment to excellence,” Trudeau said.
In addition to Monday’s announcement, last November Amazon revealed plans to expand into another location in downtown Vancouver. It will open in 2020, and the company expects to grow to 5,000 corporate employees in Vancouver in the coming years across all of its locations in the city.
Following Monday’s news, Amazon’s share price closed at $1,566.13, down 0.41 percent. TipRanks has a “strong buy” ranking on the stock with a target price of $1,818.49.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.