Jeff Bezos, Amazon's founder and executive chair, is making another major stock sale. He recently filed plans to sell an additional 25 million shares of Amazon (AMZN) worth roughly $5 billion.
Record Stock Price Triggers Sale
The sale notification came after the stock market closed on Tuesday, the same day Amazon's share price reached its highest point. The filing allows for the potential execution of the sale as early as the same day it was submitted.
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The latest move follows Bezos' previous stock sale in February 2024, where he offloaded shares valued at $8.5 billion over nine days. This latest sale, when finalized, will bring his total for the year to an estimated $13.5 billion, according to the Bloomberg Billionaires Index.
Despite the significant sales, Bezos will still retain a substantial ownership stake in Amazon. After completing this latest sale, he is expected to hold approximately 912 million shares, representing roughly 8.8% of the company's outstanding stock. According to Bloomberg's wealth index, Bezos is currently the world's second-richest person, boasting a net worth of $221.6 billion.
Related Article: World's Richest Man: Jeff Bezos Reclaims Top Billionaire Status from Elon Musk
Amazon Stock Soars on Cloud Computing Growth
Amazon's stock price has witnessed a significant surge of 32% year-to-date. This upward trend is likely fueled by investor optimism surrounding the company's cloud computing business (Amazon Web Services) and its potential to benefit from the growing field of generative AI technology.
Bezos' recent relocation from Seattle to Miami in November 2023 may be another factor influencing his stock sale decisions. In 2022, the state of Washington implemented a 7% capital gains tax, a levy not present in Florida. This move could potentially save Bezos hundreds of millions of dollars in taxes.
Bezos' Amazon Holdings
While the reasons behind these substantial stock sales remain undisclosed, Bezos still holds a significant ownership stake in Amazon, as per The Economic Times report. Only time will tell how his future financial decisions will impact his position within the company.
In other news, Business Insider reported that Bezos called out SpaceX's launches. He urged the United States Federal Aviation Administration (FAA) to limit them, but Elon Musk found it concerning.
The report said that Blue Origin was aware of SpaceX's frequent rocket launches and their impact on the environment. But Musk hit back at Bezos, stating that Origin should be sued.
To remedy the problem, Blue Origin left some recommendations that SpaceX can follow, including imposing a cap on the operations of Super Heavy launches. This would minimize the impact on the environment and communities.
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