Menu

Amazon CEO Departs After Record Year

Plus500 | Wednesday 03 February 2021

Amazon (AMZN) announced its first quarter with over $100 billion in revenue yesterday, joining an exclusive club as CEO Jeff Bezos confirmed his upcoming departure. Amazon shares went up 1.2% as of yesterday’s close.

E commerce

Amazon (AMZN) had Q4 2020 earnings of $125.56 billion in sales which made it the fourth American based company to pass $100 billion in quarterly earnings, after Walmart (WMT), Exxon Mobil (XOM), and Apple (AAPL). This amount of quarterly revenue surpassed expectations and helped the company reach a record annual performance in 2020 with total revenue up 84% for the year.

Some factors in Amazon’s huge quarterly earnings may include an online holiday shopping season helped by lockdowns related to COVID-19, which kept customers from visiting brick and mortar stores. The company also switched one of its major sales drivers, Amazon Prime Day, from July to October in response to market disruptions caused by the pandemic.

Founder and CEO Jeff Bezos took the opportunity to go out on a high note and announced that he would be transitioning to a new role as Executive Chair beginning in Q3 2021. He will be replaced as CEO by the current head of Amazon Web Services, Andy Jassy. Bezos has headed the company since 1994 and is currently the second richest person in the world after Elon Musk.

Earnings News From Alibaba

Alibaba (BABA) was another company that released quarterly share earnings for December 2020 yesterday, recording a 37% jump in revenue from the same quarter in 2019. Much like Amazon, the company’s sales model might have benefitted from customers shopping online while under “stay at home” orders. The third quarter also included Singles Day, where sales reached $75 billion dollars over a four-day period.

While Alibaba had a magical performance this quarter, it is still facing charges of monopolization and China’s State Administration for Market Regulation (SAMR) opened an official investigation in December. Alibaba’s CEO Jack Ma is also facing a lot of heat for his controversial criticisms of the Chinese government, and notably, he was excluded from a list of Chinese tech leaders which was released by the Chinese state media on Tuesday.

These ongoing investigations could be the reason for Alibaba (BABA) dropping 3.7% at the end of yesterday's closing, despite having positive earnings results.

While Amazon and Alibaba have been able to turn lockdowns into profit centres so far, we’ll need to see if they can maintain their dominance once commerce returns to normal.


Get more from Plus500

Expand Your Knowledge

Videos & Articles help you expand your trading knowledge.

Prepare Your Trades

Our Economic calendar helps you explore global market events.

Trade Without Surprises

Understand the full costs of your trades now for better expense management later.


This information is written by Plus500 Ltd. The information is provided for general purposes only, and does not take into account any personal circumstances or objectives. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. No representation or warranty is given as to the accuracy or completeness of this information. It does not constitute financial, investment or other advice on which you can rely. Any references to past performance, historical returns, future projections, and statistical forecasts are no guarantee of future returns or future performance. Plus500 will not be held responsible for any use that may be made of this information and for any consequences that may result from such use. Hence, any person acting based on this information does so at their own discretion. The information has not been prepared in accordance with legal requirements designed to promote the independence of investment research.

Need Help?
24/7 Support