Mad Hedge Technology Alerts! 

Flatten the curve!

No, I am not talking about that 2020 thing, I am talking about the CEO of Amazon Andy Jassy’s vendetta to remove the middle manager tier out of the company he runs.

Flatten the curve so there is no more middle manager and everyone is on the same level with higher-ups rejoicing with the entry levels.

Everything sounds ideal, right?

So why buy this company’s stock?

Why do it?

Easy answer – the stock price goes higher.

Jassy’s campaign to gut the bloat out including the higher earners of Amazon is ringing alarm bells within the employee ecosystem at Amazon.

Amazon is probably the worst FANG company to search for a job at this point. I would never recommend it to a friend.

The thing about Jeff Bezos, he paid his employees well and promised promotions and lots of other perks.

Jassy is promising the inverse and employee morale has fallen off a cliff then mixed into the fact that workers now go back to the office 5 days per week when the standard at other tech companies is a hybrid 3 days per week in-office requirement.

Tried and Tested Amazon's career paths are drying up faster than the Salt Lake in Utah.

Managers fear replacement by lower-paid people with less experience and half a brain.

Jassy has even coined a new term “horizontal development” which he wants workers to understand as a fake promotion. 

Jassy even codified his philosophy into a published 1,400-word manifesto for change on Amazon’s corporate blog — where investors could read it — and appears to have targeted an entire layer of middle managers.

Jassy is pressuring HR to hire from a pool of recent college graduates to fill positions while finding reasons to remove more senior workers.

Jassy’s cost-cutting has helped increase profits in each of the past six quarters, and the shares have surged 42% in the last 12 months.

Targeting middle managers rather than front-line workers has become more common recently in corporate America because these people tend to have higher salaries and usually don’t contribute directly to a project by coding or negotiating deals.

Like 2024, I do believe Amazon has a great chance at defying the tech malaise by pushing the financials over the line.

The stock will be rewarded by a higher share price.

Let’s be straight, Amazon isn’t reinventing the wheel.

There is no big new shiny thing to hang their hat on.

But much like Tim Cook came in for Steven Jobs, Jassy has come in for Jeff Bezos to operate the hell out of Amazon and search for nickels in the corner of every couch.

Sadly, that is what has come of Silicon Valley and the “most innovative” place in the world.

The truth is that Silicon Valley isn’t innovating like it used to aside from a few people like the guy who figured out how to re-use rockets.

However, Amazon and Silicon Valley don’t need to offer something new when there is little competition besides the Chinese (which are taking over the iPhone and EV business).

Unluckily for China, it’s harder for the Chinese to replace a foreign e-commerce and logistics company while easier to rip off a smartphone.

Buy the dip in Amazon in 2025.