• Jeff Bezos sold $863.5 million worth of Amazon shares
• The news was reported by CNBC’s Kate Rooney on ‘Closing Bell Overtime’
• The article provides details about the share sale, including a video clip
Jeff Bezos, the founder and former CEO of Amazon, has sold $863.5 million worth of Amazon shares. This news comes from CNBC’s Kate Rooney on Closing Bell Overtime.
Details of the Share Sale
Bezos sold 905,456 shares this week at an average price per share of around $954. Those shares make up just under 1% of Bezos’ total Amazon holdings. Even after the sale, Bezos still owns 10% of Amazon’s outstanding common stock.
This is not the first time Bezos has sold large amounts of Amazon stock. In fact, he has been consistently selling about 1 million shares annually as part of a pre-arranged trading plan.
Reasons for the Sale
While Bezos has not commented on this specific share sale, he likely made the trade to free up cash for other investments and ventures.
In recent years, Bezos has shifted his focus away from Amazon’s day-to-day operations. He stepped down as CEO in 2021 and became executive chairman. This has given him more time to devote to his other companies like Blue Origin and The Washington Post.
He also needs liquid funds to finance his expensive hobbies and philanthropic endeavors. Bezos is currently worth $137 billion, making him the fourth richest person in the world. Even after this week’s stock sale, the vast majority of his net worth still comes from his Amazon holdings.
Amazon’s Response
Amazon’s stock barely reacted to the news of Bezos’ share sale. The stock closed down just 0.2% on the day Bezos sold his shares.
Investors do not seem concerned about the founder cashing out stock. The sale represents only a tiny fraction of Bezos’ total stake in Amazon. Wall Street also knows these routine sales are planned every year as part of Bezos’ divestment strategy.
The Future for Bezos and Amazon
While Bezos is selling some Amazon stock to fund other projects, he remains deeply involved with the company. As executive chairman, he still oversees major initiatives at Amazon.
The e-commerce giant continues to perform well, even with Bezos taking a step back. Revenue has grown 20% annually over the past five years. Amazon dominates the cloud computing market with its profitable AWS segment.
As long as Amazon keeps innovating and expanding into new markets, investors appear happy to hold the stock – even if Bezos continues selling small amounts each year.
