Shares of online retailer Amazon.com are expected to dip in early trade today following news that chief financial officer Mr Warren Jenson will resign later this year.
"The company's fundamentals are stronger than ever, but we think that Warren's decision to leave will create near-term pressure on the stock price due to the uncertainty surrounding the change and successor," Goldman Sachs analyst Mr Anthony Noto said in a research note.
Shares of Amazon.com were trading at $14.87 in pre-open dealings down from yesterday’s close at $15.97 on the Nasdaq.
Analysts said Mr Jenson's shoes will be hard to fill. Amazon said it has already started a search for a successor and could promote from within. The company said it was not changing its 2002 goal of generating positive operating cash flow.
Merrill Lynch analyst Mr Justin Baldauf said in a research note that the company's reiteration of 2002 cash flow targets could soften the blow of Mr Jenson's departure.
"We believe Jenson values his reputation highly, and would expect him to go out on a high note," Mr Baldauf added. "The April earnings call is expected to be his last, and so we would not be surprised if the company turns in a solid March quarter."