Jeff Bezos Stepped Down as Amazon CEO 5 Years Ago, and the Stock Has Lagged the S&P 500 Since. Could Amazon's 15.3% Gain on July 31 Mark a Turning Point?

Amazon surged 15.3% on July 31, 2026, after posting its fastest revenue growth in five years at 20% to $167.7 billion. The rally follows five years of underperformance versus the S&P 500 since Jeff Bezos stepped down as CEO.

AWS drove the quarter, expanding 37% to $42.2 billion—its fastest pace in 18 quarters. Both Amazon's AI and chips businesses crossed $25 billion annual revenue run rates, each posting triple-digit growth rates.

The strength appears tactical rather than sustained. Third-quarter guidance calls for 9-12% revenue growth, a sharp deceleration from the just-reported 20%. Management attributed part of the slowdown to Prime Day shifting from July to June, creating a tougher comparison.

The stock has lagged the broader market during CEO Andy Jassy's tenure, making the July blowout quarter a potential inflection point. AWS acceleration and the scale of the AI and chips businesses provide new growth drivers, but guidance suggests the company views the 20% print as an outlier rather than a new baseline.