Amazon to hire new workers, but UBS says 'so what'?

The Associated Press, with
An employee stacks items to be shipped at the Inc. fulfillment center.
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Amazon says it is hiring more than 2,500 full-time workers at its order fulfillment centers around the U.S.

Yet the company's stock tanked after UBS slapped it with a downgrade, citing the online retailer's pricing of its premium service.

Amazon plans to announce Wednesday that the jobs are available in Chester, Va., and Petersburg, Va.; Coffeyville, Kan.; Columbia, S.C.; Dupont, Wash.; Murfreesboro, Tenn.

(Read more: Amazon says itcan ship items before customers order)

The world's largest online retailer says last year it hired more than 20,000 people at its fulfillment centers, with more than half starting out as seasonal workers. Amazon says the median income for people working at its order-fulfillment facilities is higher than at traditional retailers. The Seattle-based company had 117,300 full-time and part-time employees at the end of 2013, according to a regulatory filing.

Still, the news did not prevent UBS from slapping the stock with a downgrade. Analysts at the bank said they were "negatively surprised" by the results of a proprietary survey that showed Amazon customers may be put off by a potential price hike for Amazon Prime. It also cited "a lowering of expected margin improvements in 2014/2015," due to Prime membership promotion.

UBS lowered its rating to "neutral" from "buy", while cutting its 12 month price target to $375 from $450.

It's stock, traded on the Nasdaq, fell by nearly 4 percent to $348 in late morning dealings.

By The Associated Press, with