Amazon (NASDAQ: AMZN), like an invasive bamboo plant, is taking over the Philadelphia landscape, expanding like no other by doubling the number of warehouses it owns in the region to over 50. The giant multinational tech company now encircles the entire Philadelphia region. But that's not all: In a Godzilla versus King Kong-like battle, Amazon is trying to topple the current giant of the Philadelphia area: Walmart (NYSE: WMT).
The details on what Amazon is doing
Not only is Amazon building a lot of warehouses in Philly, but it's also building a lot of huge, almost intimidating, warehouses -- some of which are slated to be more than a million square feet in size.
Plans are to build 14 warehouses in the greater Philly region, an expansion so big and happening so fast it's even mind-blowing to real estate experts and industry analysts who've seen it all.
This expansion is not limited to Philadelphia. Amazon's real estate footprint has increased by 50% from 2019 to 2020, and it now owns more than 800 warehouses in the United States.
The good news regarding this Amazon expansion is the hiring of workers. In 2020, Amazon hired about half-million employees worldwide during the pandemic -- 400,000 of whom are in the United States. And not all the workers are $15 an hour (with health and retirement benefits) fulfillment-center types. Amazon employs thousands of white-collar workers at its various headquarter buildings.
Amazon's not alone
Google (NASDAQ: GOOGL), currently the owner of 25% of office space in San Francisco, is also employing some takeover tactics of its own by building a mixed-use development with a transit station in San Jose that can take employees to and from Google. Part of Google's plan for getting the thumbs up from the public is to offer what Google calls "affordable housing."
But what does Google mean by "affordable housing?" Because housing will be built on land owned by Google, what "affordable housing" means in this instance is affordable rent, not affordable houses for people to buy. So Google employees would, under this vision, work for and pay rent to Google.
An investment opportunity?
Getting back to Amazon: It's clear Amazon, an already huge mega-corporation, is becoming huger. While many companies were going through difficult times during the pandemic, Amazon enjoyed a whopping 70% increase in profits (to $14.1 billion), largely due to the pandemic as many competitors were forced to lock down.
Whether investors agree with these (or with Google's) tactics, they might stand to make some money investing in one or both of these giant tech companies. Amazon boasts a strong share price that grew during the pandemic as Amazon delivered to people in lockdown. Its stock reached a high in September 2020. Amazon also earns revenue from its cloud-computing company and video-streaming service.
The Millionacres bottom line
The growth of tech companies is still in the early stages, which means it might be a good (even great) time to invest in them. There's not much question that tech is still on a growth trajectory, but there are issues involved, such as how Amazon treats its warehouse workers and whether they'll unionize; such issues can sometimes be problematic with the public.
Meanwhile, Amazon is working to give consumers what they want: a two-hour delivery window on items ordered. To do that, it needs many fulfillment and distribution centers, and that's exactly what's happening.