CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Amazon shares fall despite announcing $15 hourly wage increase

Amazon.com has announced on Tuesday it will raise employee minimum wage to $15 per hour from next month.

IG Analyst

Publication date : 2018-10-04T02:44:00+0100

Amazon employee

This wage hike comes after a spate of complaints made by critics and employees, calling out the retail giant over poor pay and working conditions.

The new minimum wage applies to more than 250,000 Amazon employees, including part-time and contract, and seasonal employees. Amazon also announced on Tuesday, employees already making $15 per hour will also see a pay increase.

Amazon is including Britain in the increase, raising the wage to 10.50 pounds ($13.59) for all employees in the London area from November 1^st, and 9.50 pounds per hour for employees working in other parts of the country.

The online retailer said the change in minimum wage will be considered in its forward-looking quarterly guidance.

Amazon is encouraging their competitors to jump on board, Amazon Chief Executive Jeff Bezos said in a statement.

“We listened to our critics, thought hard about what we wanted to do, and decided we want to lead,” Mr Bezos said.

Amazon also said it would now lobby for an increase in the Federal minimum wage.

The bold move comes after Amazon last month became the second company, after Apple to reach the $1 trillion mark.

Despite the announcement, the company’s shares closed 1.6 % less at $1.971.31 after the news.

Amazon.com shares opened at $1.952.50 on Thursday, with Analysts predicting an ease by the end of the week.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.