Amazon shares surged 7% in the past two trading days after CEO Jeff Bezos handed over the reins to Andy Yassi, head of AWS’s cloud division. The Pentagon’s decision to cancel its $ 10 billion cloud contract with Microsoft was a big boost to the stock. AWS is likely to split this contract with Microsoft.
Amazon (AMZN) shares are up 7% in the past two trading days – the most significant gain in the past 10 months.
Investors welcomed new Amazon CEO Andy Yassi, who took over as CEO. director on July 5 to replace founder Jeff Bezos.
Amazon shares surged 4.7% on Tuesday after the Pentagon announced the cancellation of a $ 10 billion cloud computing contract with rival Microsoft Corporation (MSFT).
Amid these two significant news for the company, Amazon has a $ 1.8 trillion market cap. approached the highest valuation of $ 2 trillion reached by Apple (AAPL) and Microsoft.
Microsoft and Amazon to Share Pentagon’s Cloud JEDI Contract
Some analysts have called the US Department of Defense’s decision this week a redress, as the previous decision to award a major cloud services contract exclusively to Microsoft could have come under political pressure from former US President Donald Trump, known for his feud with Amazon CEO Bezos.
In a statement, the Department of Defense called Microsoft and Amazon “the only cloud service providers able to meet the demands of the Department.”
This means Amazon and Microsoft are likely to share a long-term government contract.
The Pentagon deal is more than just a big deal – for Microsoft and Amazon, it’s more about reputation and leadership in the cloud computing market.
Microsoft shares were unchanged at the close of trading on Tuesday.
Andy Yassi is the best nominee for the new head of Amazon
Andy Yassi is the best candidate to replace Bezos that Wall Street could have imagined. Yassi has been at Amazon for almost the same time as Bezos, and has led Amazon Web Services (AWS), the world’s # 1 cloud computing company that generates the highest margins for its parent company, Amazon.com. Inc.
In a letter to employees, Bezos wrote about Yassi: “He will be an outstanding leader and I have complete confidence in him.”
Amazon’s board of directors sees Yassi as a visionary leader who will continue to expand the company’s business beyond traditional retail, taking the tech giant to the next level.
Amazon is already testing its own robotic air and ground delivery services and has expanded to healthcare and original video content, competing with Netflix (NFLX), Disney (DIS) and smaller players like Hulu. Amazon is in the process of buying Metro-Goldwyn-Mayer for $ 9 billion today.
At the end of Friday last week, Amazon’s board of directors gave Yassi a big incentive to do well. In a filing with the Securities and Exchange Commission (SEC), Amazon said Yassi would receive 61,000 of the firm’s common shares, with a Friday closing price of $ 3510.98 – representing a fortune of $ 214,169,780.
After retiring from Amazon, Bezos plans to devote more time to his space company Blue Origin.