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