In a significant financial maneuver, Jeff Bezos, the founder of Amazon.com, Inc. (NASDAQ: AMZN), has liquidated a substantial portion of his holdings in the company. This move comes as part of a larger strategy that will see him sell up to 50 million shares by January 31, 2025.
The Big Sale:
Bezos parted with nearly 12 million shares, raking in over $2 billion. This sale, the first since 2021, took place across two days and was executed under a trading plan Bezos adopted in November 2023. It's reported that the shares were sold at prices ranging from $169.71 to $171.02 each.
Behind the Numbers:
Amazon's stock has been performing robustly, closing at $174.45 recently, marking a more than 78% increase over the past year. Prior to this sale, Bezos controlled approximately 12.3% of Amazon's outstanding stock, including shares owned by his ex-wife, MacKenzie Scott. Post-sale, his control is estimated to drop to about 11.8%, assuming he sells the full 50 million shares as planned.
This divestment is part of a broader strategy outlined in Amazon’s annual 10-K filing. The timing is intriguing, as it follows Bezos' announcement of shifting his official residence to Miami. This move could potentially save him around $600 million in tax expenses, given Florida’s lack of a capital gains tax, compared to Washington state's 7% tax on gains over $250,000.
Bezos' Philanthropic Ventures:
Amidst these financial moves, Bezos continues his philanthropic activities through the Bezos Day One Fund and the Bezos Earth Fund, focusing on homeless families, preschool education, and climate initiatives.
Implications for Investors:
For stock traders and market watchers, Bezos' decision signals a crucial shift in his financial strategy regarding Amazon. This could have various implications for the company's stock and investor sentiment. As the world's second richest person, Bezos' financial moves are always under scrutiny, and this large-scale sale is no exception.
The Amazon founder's sale of a significant portion of his shares is not just a financial headline but also a strategic maneuver that could impact the market and investor perspectives. As we continue to observe Amazon's performance and Bezos' future moves, it will be interesting to see how this affects the company's stock and the broader market.