AMZN Stock LAUNCHES into Blue-Skies Breakout Territory

0:00 Amazon stock or ticker symbol amzn is finally breaking out of a very established resistance pattern at that 3 500 to 35 50 dollar range amazon bulls have attempted to breach this powerful resistance level several times over the last 11 months and have failed each time but not today ironically amazon stock is breaking out of this range of heavy resistance on the same day that jeff bezos is departing as amazon ceo now amazon is actually trading at all-time highs which means

0:35 Blue sky levels in this episode of 9-5 investing i'm gonna discuss the significance of this technical breakout for amz in stock to all-time highs and then i'm gonna discuss why i believe the market is reacting so positively to amazon having a new ceo now this technical breakout is a big deal for amazon stock why you might ask well in my view there are two main reasons why this is a significant technical breakout for amz in stock the first reason that i

1:09 Believe this is a strong technical breakout for amazon stock is because it is now officially trading in blue sky territory now when i'm talking about blue sky territory all i mean is that the stock is actually trading at all-time highs so the next logical question is why is a blue sky breakout more significant than a standard breakout because in a blue sky breakout there are a lot less people trying to sell the stock whenever a stock is at all time

1:37 Highs you don't have any bag holders every single time that a stock has a breakout then retreats to a lower level there are always gonna be some bag holders for anyone that does not already know a bag holder is simply just an investor that is holding a stock that is at a lower level today than the price that they actually bought that stock for a bag holder is essentially any investor that has unrealized losses so i give you this background to explain

2:07 One simple concept at this very moment in time there are no bag holders for amazon stock okay well technically there are a few bag holders because amazon is not going to close at the daily high but you get the point and because there are very few bag holders on amazon stock right now there are going to be very few investors that are in the market to sell their shares of amazon stock just to break even the fact that there are very few sellers in the market

2:36 For amazon stock means that the stock is going to have a lot more upward price momentum price movements in stocks are basically just fluctuations and supply in demand blue sky breakouts have two main effects on the supply of a stock the first we already discussed there are going to be less sellers because there are less people trying to dump their bag and break even on amazon stock the second effect on the supply that this blue sky breakout is gonna have is

3:04 There gonna be more buyers that will shrink the supply because there's always a lot of excitement generated from new all-time highs on any stock this breakout of amz and stock is significant for this blue sky reason but that is not the only reason that this breakout should be strong the second reason that this breakout should be strong should be significant is because this was a very strong level of resistance if you look at the weekly chart where

3:32 Each candlestick is going to basically show the price activity for one week you're gonna see that amazon stock got rejected several times from this range at the 3500 to 3550 level this was a very strong resistance level the more times that a stock price gets rejected from a certain price level that's going to signify stronger and stronger resistance and ironically the thing that finally pushed amazon stock above this resistance level was jeff bezos

4:04 Leaving as ceo of amazon which is very strange this guy has been an excellent ceo he's been with the company i mean he started the company in 1994 so if anything you would think that this would create a little bit of uncertainty for shareholders but this is not the case let's talk about that right now so my personal belief is jeff bezos is kind of tired of dealing with all the headaches of running a trillion dollar plus company like amazon particularly the government getting so

4:35 Interested in this anti-trust type of stuff i'm sure he's wanting to avoid going to these regulatory hearings and stuff like that frankly it seems like jeff bezos has other interests besides running amazon you look at bezos's instagram you'll see a picture of him shown with the rock and a video about how he is going to realize his lifelong dream of traveling the space with his brother on july 20th so that's bezos he has been running amazon working his butt off

5:04 Building this incredible like 1.7 trillion dollar company since 1994 and now he just wants to live like a recently divorced bachelor that also happens to be the richest man in the world and it looks like bezos is going to do just that now that leaves shareholders of amazon with andy jassy andy jassy is actually a former executive of amazon's aws segment their cloud computing segment and now he will actually be the ceo of amazon the shake-up in amazon's executive

5:40 Management was actually announced earlier in the year it was announced in february but the market actually seems to be reacting to the news as jeff bezos is leaving amazon because amazon stock is up rather significantly while the overall broader markets including the nasdaq are down so why is the market reacting so positively to having andy jassy as the new ceo of amazon well this is all speculation because it's not like i can tap directly into the minds of thousands

6:10 Upon thousands of amazon shareholders but i do believe that they think that jesse is a viable replacement for bezos because jassy actually used to run amazon's most profitable business segment that was their aws their cloud computing so here's a comparison that will really help you understand the significance of amazon web services they actually brought in about 200 billion dollars across their e-commerce segments in 2020. amazon only generated about 40 billion dollars of revenue from their amazon web services their cloud computing business segment yet it actually accounted for about 63 percent of their operating profit in 2020.

6:51 In other words aws only accounts for about 12 of amazon's revenue yet it actually brings in about 63 of amazon's operating profit the margins from cloud computing are much higher than the margins from e-commerce will ever be for amazon and this is exactly why this business segment aws is the most important business segment that amazon has jassy has been with amazon almost since the beginning back in bezos's garage and uh he is really the one that has

7:29 Pioneered this cloud computing business since aws is amazon's most significant again their most profitable by far despite having a fraction of the revenue that comes from the e-commerce business segments that's why this makes andy jassy the natural successor to jeff bezos so how will amazon be different under the reins of andy jassy instead of jeff bezos well one early indication is that he actually added two principles two items to amazon's leadership

8:02 Principles and those two items are going to be empathy and being the world's best employer so it seems like jesse is going to have a pretty big emphasis on employee satisfaction now it's important to understand bezos wants more time for his hobbies including hanging out with his new girlfriend that is apparently a pilot and traveling to space but he is actually still going to be the executive chairman of amazon so my interpretation of the shift in

8:31 Executive leadership is that jassy is going to do a lot of the more heavy lifting from an executive management perspective including those congressional hearings that inevitably amazon amazon ceo is going to have to attend but then you're going to have bezos in the background who is going to have more time for his hobbies but he probably will have the final say on most major decisions i think that the stock market liked the shake up in executive management because

9:00 Jassy can bring in a new perspective that will help make amazon build even more value for its shareholders over time but you're still gonna have bezos in the background making sure that the amazon empire doesn't burn down if you enjoyed my analysis on amazon stock today please consider smashing that subscribe button or gently tapping the like button as ever action really does help out with that youtube algorithm that is getting more competitive by the

9:27 Day it seems like thank you so much for spending a part of your day to be here it does mean a lot to me genuinely i mean that and uh we have a very bullish day if you would like to watch a video about amazon's chinese competitor that also happens to trade at a cheaper valuation than amazon then click the thumbnail on the left if you want to watch a video about a new space company that is trying to eliminate all cellular connectivity gaps then click the thumbnail on the right