How Much Will Amazon's Wage Hike Cost Investors?

Amazon (NASDAQ: AMZN) is really laying on the incentives for new hires as it battles other entry-level employers for employees amid the ongoing work shortage in the U.S.

All the new hires and increased compensation add up. Labor costs will climb about $4 billion year-over-year in the fourth quarter, according to Morgan Stanley analyst Brian Nowak. The increased expense led Nowak to lower his price target for the FAANG stock, but long-term investors should also recognize the benefits of Amazon's increased spending.

Image source: Amazon.

Source Fool.com