10 stocks to watch as Jeff Bezos exits Amazon
We’ve rounded up a list of competitor stocks to track as Bezos steps down as Amazon CEO.
After almost three decades at the helm of the world’s biggest online retailer, Amazon’s CEO Jeff Bezos is exiting with a bang. The news comes as the company reported record quarterly profits and sales of over $100 billion for the first time.
Bezos is to be replaced by Amazon’s head of its cloud computing division, Andy Jassy, ending speculation about who was in line to fill the top spot.
Amazon shares initially jumped in after-hours trading as shareholders digested the news. But because the announcement was delivered alongside impressive company earnings and a barrage of other updates, it’s difficult to separate the shareholder response.
A CEO can make a big difference when it comes to shareholder sentiment. When Apple’s Steve Jobs took extended medical leave in 2009 following a successful decade as CEO, stocks shed 10% in a day. News that Jobs was stepping down as CEO in 2011, sent prices falling by 5%.
Tesla’s frontman Elon Musk is arguably one of the key driver’s behind the company’s stock market success in recent times – as well as its frequent volatility.
Similarly, Bezos has played a central role in Amazon’s meteoric global expansion and investors are doubtless still unpacking what the change means for the market. How Jassy takes up the reins in the coming weeks will no doubt be closely monitored by the market.
Who is Andy Jassy?
Before the promotion, Andy Jassy was Amazon’s Web Services (AWS) chief. According to Reuters, the Harvard MBA graduate joined Amazon in 1997 and he later went on to launch Amazon’s AWS cloud service platform, used by millions of businesses the world over.
More importantly, Jassy’s background highlights the importance Amazon is placing in web and cloud services.
If, like others, you’re keenly watching developments, we’ve put together a list of competitor stocks that might be impacted by the change. It bears remembering that stock market reactions are tricky to predict. These are ideas, not suggestions.
Tech stocks (like Amazon) to watch
Microsoft is an American multinational conglomerate that develops and sells electronic goods and hardware, computer software, personal computers and related services.
- Market cap : $1,806.437 billion
- 1-year return: +40.70%
- 3-year return: +171.77%
- 5-year return: +374.55%
How to buy tech stocks
If you’re looking to take advantage of the upward trend in online retail or streaming services, you can invest in stocks such as Amazon, Alibaba or Netflix.
To buy shares in a company, you’ll need to sign up with an online broker. For more information on how the stock market works, head to our guide on buying and selling stocks or to our share trading homepage to open a brokerage account.
Just remember, investing in the stock market can be risky. Before buying stocks, you should always do your homework and understand that stock prices can go down as well as up.