Amazon Shares Will Continue To Surge After Pandemic Subsides, Mark Cuban Says

Amazon.com Inc. AMZN shares will continue to surge even after the coronavirus (COVID-19) pandemic ends, according to Mark Cuban.

What Happened

The pandemic has forced inherent changes in consumer behavior, the Dallas Mavericks owner told CNBC. Civilian lockdowns imposed to curb the spread of the coronavirus have made consumers comfortable with e-commerce, and this change is likely permanent.

"People who weren't comfortable dealing with Amazon for consumables, for food, for produce even, I think they've gotten to that habit now," Cuban told CNBC.

"I think Amazon just takes off," said Cuban, a longtime shareholder of Amazon's stock. "I think it goes up, up, up, up, up."

The "Shark Tank" star said that consumers being scared of going back to physical stores will also play a role in keeping the demand for Amazon's services high.

Why It Matters

Amazon shares closed Monday's session 0.8% higher at $2,393.61. The stock is up 29.5% year-to-date.

The e-commerce giant last week added 100,000 people to its workforce in warehouse and delivery roles over the course of a month, and was looking to add another 75,000 employees as soon as possible.

Amazon has announced a host of measures to support employees during the pandemic, including grants paid leaves for those who contract COVID-19, and an additional relief fund. Nevertheless, workers have protested what they say are lack of safety measures across Amazon warehouses in the U.S.

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Photo credit: Gage Skidmore, Wikimedia Commons