What happened 

Shares of Amazon (NASDAQ:AMZN) climbed on Wednesday, as U.S. election results reduced investors' fears of burdensome regulation on the tech sector.

So what

Amazon has long been the target of antitrust regulators, who have grown weary of the e-commerce and cloud computing titan's ever-expanding size and scope. Yet with the Republicans likely to maintain control of the Senate, even if Joe Biden wins the presidential election, the Democrats may find it challenging to pass legislation geared toward limiting the power of the largest technology companies.

A person is pointing to an upwardly sloping line.

Amazon's stock popped following the U.S. elections. Image source: Getty Images.

If regulators leave Amazon to its own devices, the online retail giant will likely continue to grow at an impressive clip. Amazon's sales soared 37% to $96.1 billion in the third quarter, as e-commerce sales boomed during the coronavirus pandemic. 

Now what

With the risk of a potential breakup of Amazon's business now lessened, investors are viewing its stock as less risky. In turn, they're now willing to pay a higher price for Amazon's shares. And if Amazon's remarkable growth is able to continue unabated, Wednesday's gains could be just the beginning of a far larger upward move in its share price in the months and years ahead.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.