Amazon's Post-Bezos Slump May Be Apple's Future Too

Amazon has struggled to keep pace with the broader market since Jeff Bezos stepped down as CEO in mid-2021. The company's stock has risen by roughly 50%, which is less than the over 100% gain of the Nasdaq-100 and the nearly 90% rise in the S&P 500 index.

The underperformance may be attributed to Amazon's massive investment in artificial intelligence, with a planned $220 billion expenditure in 2026. In contrast, Apple has taken a more cautious approach, focusing on using AI to enhance its products rather than building massive data centers like Amazon.

As Tim Cook prepares to step down as CEO of Apple on September 1, investors should be aware that the company's direction may change in response to the rapidly evolving AI landscape. However, it is uncertain whether Apple's stock will follow the trend set by Amazon, which has underperformed since Bezos' departure.