Jeff Bezos is stepping down as CEO of Amazon, but investors aren’t too worried about the company’s next steps.

What’s happening: Bezos said Tuesday that he’ll move to the role of executive chair later this year. He’ll be replaced by Andy Jassy, who’s worked for Amazon since 1997 and serves as the head of the company’s cloud business, Amazon Web Services.

It’s a big change. Bezos has grown Amazon from an online bookstore that he launched out of his garage in 1994 into a $1.7 trillion behemoth. But the company’s shares have barely budged in premarket trading.

That’s a sign that Wall Street is confident enough in Amazon’s trajectory to brush aside the leadership transition. And it has good reason to be.

Jeff Bezos is stepping down as Amazon CEO; cloud chief to take over

Amazon said Tuesday that net sales last quarter reached $125.6 billion, a 44% increase compared to the same period in the prior year. It logged $7.2 billion in profit, more than double what it earned between October and December 2019.

Such profits weren’t always a given. In fact, Amazon was unprofitable on an annual basis as recently as 2014, as Bezos opted to focus on growth and build out new parts of the business.

But that’s helped Amazon grow into a diversified company that in many ways looks future-proof. Money from the company’s retail arm has been plowed into building out cloud infrastructure, an advertising business, a massive logistics network, consumer electronics and even drug delivery, setting it up for success both during the pandemic and once it ends.

“Bezos created the blueprint for internet businesses: rapid innovation, huge scale and relentless focus on the customer,” said Nicholas McQuire, senior vice president at CCS Insight, a research firm.

Observers believe Jassy will follow this model when he takes the reins.

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“He … fully understands the wealth of assets across Amazon’s flywheel of operations,” McQuire said.

Jassy’s cloud experience signals that the AWS division — a huge profit driver for Amazon — will play a central part in the company’s next chapter. In the most recent quarter, AWS grew sales by 28% to more than $12.7 billion, which the company attributed to “significant customer momentum” after bagging new commitments from the likes of JPMorgan Chase, Twitter and MGM.

“AWS is well on its way to creating an annualized $50 billion revenue company,” analyst Patrick Moorhead of Moor Insights and Strategy told my CNN Business colleague Clare Duffy. “This makes AWS larger than and SAP combined.”

Bezos’ decision to move on will leave Facebook’s Mark Zuckerberg as one of the few remaining founder-CEOs in charge of a top US tech firm. But Bank of America analysts Justin Post and Michael McGovern said they’re heartened by the fact that Bezos will still be involved as executive chair, and note that other companies, including Apple and Microsoft, have done just fine under new leadership.

As Amazon gets bigger, it will have a target on its back, especially as antitrust regulators in Washington ramp up their crackdown on Big Tech. It could be one of the biggest problems Jassy has to navigate.

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