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Amazon Senior Executives Rewarded with Title Upgrades

Amazon.com, Inc. AMZN has rewarded two of its longest serving executives with title upgrades.

The company announced in a blog post on Thursday that former senior vice president of consumer business, Jeff Wilke is now CEO of Worldwide Consumer. Likewise, former senior vice president of cloud computing Andy Jassy will be called CEO of Amazon Web Services (AWS).

Founder and CEO Jeff Bezos will continue as the company’s top executive.

Amazon stated that the change “is not reorganization but rather recognition of the roles they’ve played for a while.”

This sounds true as both were already heading their respective divisions. Wilke has made significant contributions in expanding Amazon Prime and Marketplace. Jassy, on the other hand, has worked as Bezos personal confidante for two years and played an important role in expanding AWS.

“Marketplace, Prime and AWS are examples of bold bets at Amazon that worked, and they’ve become our three big pillars,” the company said in its blog post. “And as we’ve grown as a company and those three pillars have also grown, we’ve decided it makes sense to change the titles of the leaders of those businesses.”

Based on this statement from Amazon, we believe that these promotions are largely symbolic and recognize Jassy and Wilky’s contributions in turning the company to a tech juggernaut. This year, Amazon’s e-commerce business has already made $100 billion and AWS is most likely to cross $10 billion in annual revenues.

In recent years, Amazon has grown and diversified enormously and Bezos made sure to reward the contributions of its long serving executives.

So “what’s next” is the question that’s up on the minds of several market watchers like us. Well, given AWS’s enormous success and cash position, the decision may be an indication to spin it as an independent business in the future or it may be that Bezos is considering a succession plan.

Again, if it’s a succession plan then who are the potential successors other than the two recently promoted? Both have been there for long at Amazon.

Bezos said in a tech conference in 2014 that Amazon did have a succession plan, but kept it a secret.

At present Amazon carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are Travelport Worldwide Limited TVPT, Groupon, Inc. GRPN and Stamps.com Inc. STMP. While Travelport and Stamps.com sport a Zacks Rank #1 (Strong Buy), Groupon carries a Zacks Rank #2 (Buy).

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AMAZON.COM INC (AMZN): Free Stock Analysis Report
 
STAMPS.COM INC (STMP): Free Stock Analysis Report
 
GROUPON INC (GRPN): Free Stock Analysis Report
 
TRAVELPORT WWD (TVPT): Free Stock Analysis Report
 
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