Amazon recovers share losses after cancelling its HQ2 project in New York City

  • Amazon announced on Thursday that it has cancelled its HQ2 project for New York City expansion.
  • The decision came as many state and local politicians oppose the project, the tech giant said.
  • In November, the Amazon said it would split its new headquarters between Long Island City and Arlington, Virginia.
  • Watch Amazon trade live.

Amazon on Thursday announced that it has cancelled its HQ2 project for New York City, which caused the company’s stock to pare earlier declines. Shares were down as much as 2% earlier in the day.

The stock traded 0.5% lower at $US1,632.20 a share as of 1:09 p.m. ET.

“After much thought and deliberation, we’ve decided not to move forward with our plans to build a headquarters for Amazon in Long Island City, Queens,” the company said in a blog post.

In November, the tech giant said that it would split its new headquarters between the Long Island City neighbourhood of Queens, New York, and the Crystal City area of Arlington, Virginia. It said it would bring 25,000 jobs to both locations.

Now the company said the New York plan has been completely scrapped but it will proceed plans in Northern Virginia.

The decision came as “a number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with the project,” Amazon said.

Amazon is up 9% so far this year.

Now read:

AmazonMI

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.