Many investors were shocked to hear late Tuesday that Jeff Bezos will be stepping down from the chief executive post at Amazon.com Inc. AMZN, +0.63%, but analysts are expressing confidence about his successor, Andy Jassy.
Jassy, who joined Amazon in 1997, is currently head of Amazon Web Services, or AWS.
The Bezos news came packaged with Amazon’s blockbuster fourth-quarter earnings, in which the company reported sales of $125.56 billion and earnings per share of $14.09, nearly double the consensus estimate.
The transition to Jassy from Bezos is slated to take place in the third quarter of 2021. Bezos will stay on as executive board chairman.
See: Jeff Bezos to step down as Amazon CEO after record-smashing 2020
“We feel comfortable with the changes to the executive team, given Mr. Bezos’ continued involvement and Mr. Jassy’s extraordinary track record at AWS,” wrote Wells Fargo analysts.
Wells Fargo rates Amazon stock overweight with a $4,100 price target.
Raymond James analysts were among those unsurprised by the announcement given Jassy’s tenure with the company. The analysts said Jassy’s “strong track record of driving growth will serve the company well in its next phase of growth.”
Raymond James rates Amazon stock outperform and raised its share-price target to $4,000 from $3,500.
GlobalData Retail thinks the move might actually be a good thing.
Also: Opinion: Amazon doesn’t need Jeff Bezos as CEO to be Amazon
“While the new position is big news, the truth is that Mr. Bezos will remain fully involved with the company. Indeed, as part of his new role Bezos will be able to focus more on new ideas — something in which he excels. He will also still be around to guide the company and ensure that it does not lose its innovative edge,” wrote Neil Saunders, managing director at GlobalData.
Wedbush went so far to say it doesn’t make much difference at all.
“It is not clear to us that Mr. Bezos will actually withdraw from day-to-day oversight of the business, as we expect him to continue to be integrally involved in company strategy,” wrote analysts led by Michael Pachter.
“[W]e don’t expect much to change at the company, and expect the transition to Andy Jassy’s leadership to be seamless and largely inconsequential.”
Wedbush rates Amazon stock outperform with a $4,000 price target, up from $3,900.
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With still more growth ahead, Stifel analysts took a moment to cheer Bezos’s accomplishments in building the e-commerce and cloud services giant before handing over the reins.
” When the history books are written, Jeff Bezos will go down as one of the most successful and revered business founders in corporate history. Mr. Bezos’ feats in building this wonderful customer-centric company are matched by very few in modern industry,” wrote analysts led by Scott Devitt.
“Mr. Jassy is well-regarded inside and outside of Amazon and we believe is positioned to continue to do great things in his new role following in the footsteps of a legend.”
Stifel rates Amazon stock buy and raised its price target to $4,000 from $3,600.
Amazon stock has rallied 62% over the past year, outperforming the S&P 500 index SPX, +0.39%, which is up 17.1% for the period, and the Dow Jones Industrial Average DJIA, +0.30%, up 7.6% over the last 12 months.
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