Should You Buy Amazon Stock, Even Though It Has Badly Underperformed the S&P 500 and Nasdaq-100 Since Jeff Bezos Stepped Down as CEO?
It has been about five years since Amazon (NASDAQ: AMZN) founder and CEO Jeff Bezos stepped down from his role as CEO and handed over the reins to Andy Jassy
Those five years were pretty favorable for the stock market, but not so much for Amazon stock. Amazon has posted an average annualized return of just 6.8% over the past few years. That not only trails all of the other “Magnificent Seven” stocks, it’s also worse than the S&P 500 and the Nasdaq-100.
The S&P 500 averaged an 11.5% annualized return over that stretch, while the Nasdaq-100 averaged a 14.2% return. The only Magnificent Seven stock that came remotely close to Amazon’s underperformance was Microsoft (NASDAQ: MSFT). The others all averaged double-digit percentage annualized returns.