Amazon stock is set to open higher on Tuesday after the official release of the Amzon Pharmacy business arm. The move had been expected by investors after previous discussions but it may see support for the stock in coming sessions.
Amazon Pharmacy will allow its U.S. to order prescription medication for home delivery, with the usual free delivery for members of Amazon Prime. Prime members will also receive up to 80% savings when paying without insurance. The release of the business has been timed to take advantage of the current demand for online shopping due to government-imposed lockdowns over the coronavirus.
TJ Parker, Vice President of Amazon Pharmacy commented on the new operation:
“We designed Amazon Pharmacy to put customers first – bringing Amazon’s customer obsession to an industry that can be inconvenient and confusing”.
Customers over the age of 18 will have access to the pharmacy service this week in 45 states.
One headwind for Amazon is that the company continues to expand its operations into further sectors despite criticism over monopolistic business practices. President Trump was vocal about their effects on the U.S. postal service and the EU has also sought to tackle anti-trust issues with tech firms. Any such action may be far out into the future, unless Trump were to secure a second term in the 2020 election, which is still held up in legal wrangling.
Amazon is set to open slightly higher at the open but the support level is lower at $3,000. The stock will now attempt to move above the 50-day moving average and $3,200. Previous resistance was at $3,300 in early-November and stronger resistance is overhead at $3,500.
