Jeff Bezos May Cash Out Billions in Amazon Stock This Year
Amazon’s founder, Jeff Bezos, is considering selling up to 50 million shares of Amazon stock over the next year, as revealed in a regulatory filing on Friday. The estimated value of these shares currently stands at nearly $8.6 billion, reflecting the stock’s current price. This strategic move comes on the heels of Amazon’s announcement of a record-breaking holiday shopping quarter, propelling the company’s shares to an 8% increase on Friday.
Although Bezos stepped down as Amazon’s CEO in 2021, he continues to play a significant role as the board’s chair. The annual report, released on Friday, disclosed Bezos’ intention to adopt a trading plan, allowing him to sell the mentioned shares by January 31, 2025, contingent on specific conditions.
This decision coincides with a favourable market climate for Bezos, as Amazon shares experienced a significant rebound in 2022 after facing challenges linked to pandemic-induced shifts in e-commerce demand and broader economic uncertainties. Current CEO Andy Jassy’s implementation of cost-cutting measures, including substantial layoffs, contributed to the stock’s recent resurgence, soaring approximately 90% since its low of $84 a share in December 2022.
Additionally, Bezos’ recent relocation from Washington state to Florida holds strategic financial implications. Florida’s lack of a capital gains tax allows Bezos to potentially benefit from the stock sale without incurring additional state taxes, while Washington upholds a capital gains tax measure.
Jeff Bezos, known for his ventures beyond Amazon, including his fashion choices, relationship with fiancée Lauren Sanchez, and space exploration endeavors through Blue Origin, seems poised to capitalize on Amazon’s market success during this opportune period.
