Amazon Stocks, Kroeger Drop After McMullen’s Exit – Is AMZN a Buy?
Stock markets are mainly higher today, while Kroger shares and Amazon stock are down more than 3%, but they’re not a buy yet, until indicators signal to go long.
Kroger CEO Resigns Amid Misconduct Allegations
Rodney McMullen, who has led Kroger for over a decade, unexpectedly resigned today after nearly 50 years with the company. Reports indicate that an internal investigation found his behavior to be “inconsistent with the company’s ethical standards.” However, Kroger emphasized that the misconduct was unrelated to business operations, financial performance, or employee involvement.
No additional details regarding the nature of the findings were disclosed, which has led to speculation about potential financial irregularities. If the allegations involve financial misconduct, there could be long-term implications for Kroger’s stability, but for now, the company insists that its financials remain unaffected.
Kroger’s stock opened with a 3.8% decline, gapping down $2.50 at market open. However, it has since shown some signs of recovery, suggesting that investors are still assessing the broader impact of McMullen’s departure.
McMullen’s Legacy and the Unfinished Albertsons Deal
During his tenure, McMullen successfully navigated Kroger through the pandemic, managing supply chain disruptions and inflationary pressures while driving company growth. However, one of his most ambitious goals—acquiring rival Albertsons—remained unfulfilled, with the deal facing regulatory challenges. His sudden exit now raises questions about the company’s leadership transition and future strategic direction.
Amazon Chart Daily – The 100 SMA Stopping Buyers
Meanwhile, Amazon (AMZN) shares have seen sharp volatility, declining 15% from their recent highs after opening with two large bearish gaps in the first two trading days of last week. Despite this pullback, Amazon’s stock has skyrocketed 300% in the past two years, climbing from $80 in early 2023 to $242 in February 2025.
The recent correction could present a buying opportunity, but for bullish momentum to resume, buyers must push the price back above the 100-day SMA (green), which has now turned into resistance. If Amazon continues to trade below this key level, the stock may remain under pressure, and further downside could be expected.
Amazon’s Business Growth
AI is a major growth driver for Amazon, with CEO Andy Jassy emphasizing its importance in future applications. Generative AI, particularly within Amazon Web Services (AWS), has been a key focus, fueling market optimism as businesses adopt cloud-based AI solutions for automation and data processing.
While AWS remains Amazon’s fastest-growing segment, advertising also continues to expand rapidly. In Q4 2024, Amazon’s ad business grew 18% year-over-year, making it the second-fastest-growing division. AI-driven ad targeting and personalized recommendations have helped Amazon capture more market share, competing with Google and Meta.
With AI adoption accelerating, Amazon’s strategic investments in AI-powered cloud services, advertising, and automation tools position it for substantial long-term growth across multiple sectors.
Market Outlook
- Kroger’s stock may see further swings as investors seek more clarity on McMullen’s resignation and its potential implications.
- Amazon remains a long-term growth story, but short-term traders should watch for a break above the 100-day SMA before confirming a reversal.
- If uncertainty around Kroger’s leadership transition persists, it could lead to further selling pressure in the coming weeks.
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