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Why is Amazon stock up today?



What happened

Shares of Amazon (NASDAQ: AMZN) rose on Wednesday, as the US election results eased investor fears about heavy regulation in the tech sector.

So what

Amazon has long been the target of antitrust regulators who have grown tired of the ever-expanding scale and scope of the e-commerce and cloud computing giants. However, with Republicans able to maintain control of the Senate, even if Joe Biden wins the presidency, Democrats may find it difficult to pass laws to limit the power of public officials the biggest technology company.

One was pointing at an uphill road.

Amazon shares rose after the US election. Photo source: Getty Images.

If the regulator leaves Amazon for its own devices, the online retail giant will likely continue to grow at an impressive rate. Amazon’s revenue grew 37% to $ 96.1 billion in the third quarter, due to the boom in e-commerce sales during the coronavirus pandemic.

So what now

With Amazon’s risk of corporate bankruptcy lessening, investors are looking at its stock to be less risky. In return, they are willing to pay a higher price for Amazon stock. And if Amazon’s boom continues to remain unabated, Wednesday’s gain could just be the start of a much larger stock rally in the coming months and years.




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