Amazon Is a Customer-Friendly "Shock Absorber" of Costs

It's no secret that Amazon.com (NASDAQ: AMZN) is facing higher labor costs than ever. The e-commerce and cloud computing giant boosted its minimum wages to $15 per hour in 2018, then kicked it up to $18 per hour in September 2021. In last week's third-quarter earnings call, management made it clear that labor costs are surging and will limit the company's bottom-line profits for the foreseeable future.

Some investors saw the projection of lower profits and ran for the exits. Amazon's stock plunged as much as 4.2% lower the next morning and still trades in that diminished price range.

That opens a decent buying window for long-term investors. Amazon is fully prepared to take this labor-cost challenge in stride. In fact, management appears to take pride in their company's ability to roll with the punches.

Source Fool.com