Jeff Bezos Sells $2 Billion in Amazon Shares, Closing in on ‘World’s Richest Man’ Title
In a significant move, Amazon founder and former CEO, Jeff Bezos, has sold 12 million shares of Amazon.com Inc. stock, amounting to over $2 billion, according to documents filed with the U.S. Securities and Exchange Commission. This marks the first time since 2021 that Bezos has unloaded shares of the company he co-founded.
While Bezos has not sold company stock every year, he has generously gifted approximately $200 million in shares to various nonprofits. Prior to initiating the stock sale, Bezos owned a whopping 988 million shares of Amazon, nearly 10% of the company, by the end of December 2023.
Bloomberg reports that Amazon has disclosed Bezos’ plan to sell as many as 50 million shares over the next 12 months. This significant sell-off is in line with Bezos’ intention to diversify his investments and allocate funds to other ventures.
The decision to sell shares comes in the wake of Amazon’s impressive fourth-quarter earnings, which surpassed expectations and resulted in a 6.8% surge in the company’s stock. Bolstered by the holiday season, the earnings finished 14% higher than originally projected, generating an additional approximate $4 billion in revenue.
Miami, where Bezos now resides as his primary location, could provide substantial tax benefits if he were to complete the sale of 50 million shares there. The city does not impose state taxes, unlike Washington, which recently introduced a 7% capital gains tax on stock or bond sales exceeding $250,000.
Currently, Bezos holds the second position on Bloomberg’s Billionaires Index, with an estimated net worth of $200 billion, trailing Elon Musk by a mere $9 billion. Musk, the CEO of Tesla Motors and owner of the social media platform X (formerly known as Twitter), surpassed Bezos to become the world’s richest man in September 2021 and once again in June last year.
If Bezos successfully completes the sale of his 50 million Amazon shares, valued at approximately $8.4 billion, he could potentially surpass Musk, reclaiming his position as the world’s wealthiest individual. Bezos held the title of the richest person from 2017 to 2021, according to the Bloomberg Billionaires Index.
In contrast, Elon Musk experienced a $29 billion decline in his overall net worth last year, largely due to a significant 27% drop in Tesla’s stock. Additionally, a Delaware judge invalidated Musk’s $55 billion Tesla compensation package after ruling it unfairly favored Musk over shareholders.
As Bezos continues to make strategic financial moves, he has recently acquired a second mansion on the Indian Creek Island waterfront near Miami for a staggering $79 million. With Bezos’ fortune already soaring by $22.6 billion in 2023 prior to the stock sale, his financial maneuvers may soon propel him back to the pinnacle of the world’s wealthiest individuals.
Analyst comment
Positive news. Bezos selling shares indicates his intention to diversify his investments and allocate funds to other ventures. With the potential sale of 50 million shares, valued at $8.4 billion, Bezos could surpass Musk, becoming the world’s richest person again.
