After 30 years of starting the e-commerce giant in his garage, Jeff Bezos has decided to step down as the chief executive of Amazon (NASDAQ:AMZN). Mr. Bezos, with a fortune of almost US$200 billion, is going to become executive chairman, because he believes that the move would give him time and energy to focus on other ventures for the business.
Bezos has led the company, which began as an online bookshop in 1994, becoming a multi-billionaire in the process. With over 1.3 million employees globally, Amazon is now a household name that has a hand in every industry, from package delivery to its very own space program.
Bezos is being replaced by Andy Jassy, the creator of Amazon’s cloud computing business.
Introducing the new face of Amazon
Andy Jassy is not a household name like Jeff Bezos, but he is taking on one of the biggest jobs in the world as the chief executive of Amazon.
He has been a part of the global e-commerce giant for the last 23 years. He also runs Amazon Web Services (AWS), Amazon’s most lucrative business. It makes sense for him to be appointed as the new person in charge of the company.
AWS has been the driving force for Amazon’s profits, accounting for almost half of the company’s operating income, under Andy. AWS saw the potential for outsourcing computing and storage before its rivals did. Microsoft and Google also offer similar services, but Amazon is leading the market as the first entrant.
AWS accounts for an estimated third of the entire worldwide cloud infrastructure expenditure.
Why the move could be excellent
Mr. Jassy founded AWS in 2003 and grew this side-bet into a major growth driver for the e-commerce giant. It is obvious that he can make a good successor to Bezos. Andy Jassy has developed AWS throughout the years to make it far more successful than Amazon might have anticipated at its launch.
Investors will likely want more ventures like AWS to bring in more profits to Amazon. Andy Jassy has delivered this before. It makes sense that appointing a visionary like him is in hopes that he can deliver again. With several businesses that have plenty of room to grow, it is exciting to see where Amazon goes from here.
A high-growth Canadian tech stock
Lightspeed POS (TSX:LSPD)(NYSE:LSPD) is a darling tech stock trading on the TSX. While nowhere near as successful as Amazon right now, it has never failed to disappoint its investors in the short time it has been around.
Lightspeed is a high-growth tech stock that focuses on revenue growth instead of profit. The company provides omnichannel point-of-sale solutions to small- and mid-sized businesses. The company’s revenues took a hit with the onset of the pandemic, as many of its subscribers had to shut down due to social-distancing measures.
However, Lightspeed rebounded quickly by updating its offerings to adapt to its customers’ updated needs. The sudden surge in its revenue was reflected in the fiscal third quarter, as it reported its highest year-over-year revenue growth of 79% in three years.
Many investors might have anticipated the change in Amazon’s leadership to drive down its valuation. However, Bezos has not left the company entirely. He has just changed his role there. Additionally, the person assigned to replace him has been at the company for a long time and driven its most lucrative business. Amazon share prices are unlikely to dip.
If you are looking for a high-growth tech stock, you could consider investing in Lightspeed POS. It might be trading for a high price right now, but the stock could see a short-term correction. Lightspeed could be an excellent buy, as it could grow further after the pandemic eases and the economy recovers.
Speaking of a high-growth tech stock…
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Adam Othman has no position in any of the stocks mentioned. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon and Microsoft. The Motley Fool owns shares of Lightspeed POS Inc and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.