1. U.S. immigration rules now impose a $100,000 fee on H-1B applicants. 2. Amazon and other tech giants saw small premarket declines amid the news. 3. Indian tech stocks fell significantly due to the new visa fee structure. 4. This change may disrupt Indian outsourcing firms' business models. 5. The broader Indian tech sector faced heavy losses on Monday trading.
Amazon's near-term share price may be negatively affected due to increased operational costs resulting from H-1B fee changes, similar to 2016 when immigration policy changes caused tech stocks to decline.
The new H-1B fee directly impacts staffing costs for Amazon, which relies heavily on skilled immigrant labor, making this a significant concern for its operational expenses.
The immediate effect of increased costs will be felt in the coming quarters, impacting earnings and stock performance sequentially, as seen post-immigration changes in various tech sectors.