Amazon’s Stock Performance Under Andy Jassy
Amazon’s stock, under CEO Andy Jassy’s leadership since Jeff Bezos stepped down five years ago, has shown an average annualized return of only 6.8%, significantly trailing the S&P 500 at 11.5% and the Nasdaq-100 at 14.2% over the same period. Year-to-date, Amazon’s stock is up 8%, compared to a 9% increase in the S&P 500.
As of 2021, Amazon Web Services (AWS) held a 33% share of the cloud market, which has since decreased to 28%, while competitors like Microsoft and Alphabet have gained ground. Despite a reported sales increase of 28% to approximately $38 billion in the last quarter for AWS, rising inflation and a shift in consumer behavior have pressured Amazon’s e-commerce margins.
Amazon currently holds a $364 billion contracted backlog, up from $244 billion in the previous quarter, and Jassy notes that the company’s AI initiatives, including a new chip venture, could generate significant future revenue commitments, amounting to $225 billion.
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