Amazon.com, Inc. AMZN is reportedly expanding its North Texas operations hub at the Galleria Towers in Dallas.
The Dallas Business Journal reported that the company has leased five floors, nearly 100,000 within the Three Galleria Tower at 13155 Noel Road. These were previously occupied by FedEx and had been lying vacant since FedEx shifted its office to Plano’s Legacy West.
Amazon currently operates its regional office from the neighboring Two Galleria Tower at 13455 Noel Road. It had leased four floors in the tower in 2014. Therefore, these additions will more than double its presence within the Galleria Towers property.
Supporting the Growing Presence
The expansion makes sense given the retail giant’s growing presence in North Texas. The company already has two fulfillment centers in Coppell and plans to open a third. Its enormous distribution operations are spread across Dallas, Haslet, Fort Worth and Schertz.
Moreover, Amazon seems to enjoy a positional advantage as the area is equidistant to all cities of the region and thus could streamline distribution operations. The move also holds significance as this expansion is anticipated to create job openings for office administrators, financial experts and other operational employees.
The company has added 150,000 employees to its U.S. workforce in the last five years and had 180,000 employees by the end of 2016. It recently announced that it would create about 100,000 full-time, full-benefit domestic jobs over the next 18 months. The new facility at Coppell is expected to employ around 1000 workers.
Amazon.com, Inc. Enterprise Value
Amazon.com, Inc. Enterprise Value | Amazon.com, Inc. Quote
The retail giant has been fortifying its foothold all over the world. To date, Amazon has created millions of full-time jobs and continues to hire manpower to meet growing customer demand.
Over the last one year, the stock outperformed the Zacks Internet Commerce industry. It has returned 47.3% compared with the industry’s return of 41%.
We believe that Amazon must maintain its U.S. market share, while expanding globally, to retain its leading position. For this, the company needs to invest more in fulfillment as well as technology and content, especially in international markets with less penetration and higher growth rates.
Though flaring up expenses may hurt the company’s bottom line in the near term, we believe this is necessary for the company to maintain its dominance in this highly competitive market.
Zacks Rank & Stocks to Consider
Currently, Amazon is a Zacks Rank #4 (Sell) stock. Better-ranked stocks in the broader technology sector include Applied Materials, Inc. AMAT, Advanced Energy Industries, Inc. AEIS and Texas Instruments Incorporated TXN, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
For the current year, while estimates for Texas Instruments remained unchanged, the same for Applied Materials and Advanced Energy climbed 8.7% and 18.2%, respectively in the past 30 days.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Texas Instruments Incorporated (TXN): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
Advanced Energy Industries, Inc. (AEIS): Free Stock Analysis Report
To read this article on Zacks.com click here.