Already a major investor in the state, Amazon (AMZN) is expanding in Louisiana with a new high-tech fulfillment facility. As shopping continues to shift online, the company is increasing its capacity to keep up with demand.
The company has announced plans to build its first robotics fulfillment center in Louisiana. The facility will be located in Shreveport city.
Amazon’s new facility will bring an additional 1,000 full-time jobs to the state. The company currently employs more than 2,000 people directly in Louisiana.
People working at the robotics fulfillment facility will start with a minimum wage of $15 per hour. They will also enjoy an array of benefits, such as medical insurance, paid leave, and regular contributions to their retirement savings accounts.
The latest investment will magnify Amazon's economic impact in Louisiana. The company has invested more than $250 million in the state in the past decade. Furthermore, its presence has contributed $220 million to the state’s economy.
Amazon says its new facility will enable local businesses to reach new customers. The company allows third-party businesses to tap into its fulfillment infrastructure to deliver packages to customers through its Fulfillment with Amazon program. (See Amazon stock analysis on TipRanks)
“We’re thrilled to be able to expand our operations in Northwest Louisiana and we look forward to becoming part of the fabric of the local community,” said Amazon’s Amazon Regional Director of Operations William Hicks.
Monness analyst Brian White assigned a Buy rating with a price target of $4,500 on Amazon stock. White’s price target indicates 41.04% upside potential to the current price.
“We believe Amazon is uniquely positioned to exit this crisis as one of the biggest beneficiaries of accelerated digital transformation,” commented White.
Consensus among analysts on Wall Street is a Strong Buy based on 31 Buy ratings. The average analyst price target of $4,303.67 implies 34.89% upside potential to current levels.
AMZN scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating the stock is likely to outperform the market.
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DISH Network (DISH) plans to raise $1.25 billion in a debt offering through its broadcast division DISH DBS Corporation. Dish primarily operates a satellite pay-TV service, but also entered the wireless business last year, when it acquired Boost Mobile.
In a recent winning move, Amazon (AMZN) chose Dish to provide infrastructure for its cloud-based 5G network.
The debt offering will be subject to market conditions and will involve the sale of senior notes. Dish will sell the notes only to qualified institutional investors, the company said in a press release. More details on Dish’s debt offering plan are expected as the company hasn’t yet revealed the notes’ maturities.
Dish’s broadcast subsidiary intends to use the money from the debt offering to fund general corporate needs, including repayment of some of its existing debts.
The tapping of the debt market now comes at a time when borrowing is cheap because of low interest rates. Companies can borrow cheaply now to replace expensive debts taken earlier.
Notably, the debt offering plan follows a strong first-quarter performance. Profit and revenue jumped from a year ago despite Dish's loss of pay-TV and wireless subscribers. The company reported revenue totaling $4.50 billion for the quarter ending March 31, 2021, compared to $3.22 billion for the corresponding period in 2020. (See Dish Network stock analysis on TipRanks)
On the back of Dish’s strong Q1 earnings results, Pivotal Research analyst Jeffrey Wlodarczak reiterated a Hold rating but lifted the price target on the stock to $50 from $34. Wlodarczak’s new price target indicates 7.62% upside potential to the current price.
The analyst noted that discussions by Dish management about the company’s wireless efforts are encouraging, supporting the price upgrade. However, he maintained the Hold rating is preserved due to two factors. For one, the stock has already had a substantial run. Additionally, launches of new products are likely to be hit by delays.
Consensus among analysts on Wall Street is a Moderate Buy based on 3 Buy, 4 Hold, and 1 Sell ratings. The average analyst price target of $46.88 implies 0.90% upside potential to current levels.
DISH scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating the stock is likely to outperform the market.
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