What Does the Future Hold for Amazon’s Stock After Jeff Bezos’ Retirement?
While COVID-19 negatively impacted many businesses, the same can’t be said for Amazon (NASDAQ: AMZN). The company thrived during the pandemic by delivering essential and non-essential goods to customers’ doorsteps and helping people stream entertainment from their Prime or the Amazon Web Services (AWS) unit. Amazon’s growth and earnings over the past week are proof of its tenacious wherewithal.
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However, investors are on edge about Amazon as uncertainty about a post-COVID-19 world and the company’s future looms because of Jeff Bezos stepping down as CEO. It would be pointless to argue that Bezos has been nothing but an excellent CEO. He transformed Amazon from an online bookseller based out of a garage when the Internet was still new into a technology company worth $1.6 trillion in just over 25 years.
The announcement of a new CEO mostly never goes down well with Wall Street as it brings uncertainty about a company’s future. However, the appointment of Andy Jassy as Amazon’s new CEO shouldn’t come as bad news to investors because he’s as close to a Bezos clone as possible. Jassy was responsible for developing AWS from an idea into a $51 billion run-rate product. Although Jeff Bezos has stepped down, he has promised to remain involved in the company’s initial initiatives after the transition. While some people believe that Bezos will be too busy with his other passion projects, such as the Bezos Earth Fund and Blue Origin, there’s no doubt that he’ll continue to help Amazon achieve greater heights of success.
The uncertainty also affected Amazon’s stock prices as the stock fell from a second-stage triangle base briefly, only to move back into the congestion area. AMZN stochastics are currently flattened in the neutral territory and headed for a bullish crossover. Presently, investors should watch the Amazon stock for a price reaction back through pattern resistance, followed by a bullish stochastics signal. However, if you’re in it to win, don’t panic through the good and the bad times that lay ahead because an adjustable, fully-hedged Amazon stock is always a favorite.