Jeff Bezos, Founder of Amazon, Sells $2.4 Billion Worth of Stock in Recent Transactions
In a recent regulatory filing, Jeff Bezos, the founder of Amazon, disclosed that he has sold over 14 million shares of Amazon stock, valued at around $2.4 billion. This sale comes as the completion of Bezos’ stock sale plan, which included selling 12 million shares earlier this month for over $2 billion, followed by additional sales of 12 million shares in separate tranches throughout February. These transactions fulfill Bezos’ announcement of a planned sale of up to 50 million Amazon shares, initially valued at over $8 billion. The plan’s completion was projected to occur by January 2025. Notably, this series of sales marks the first divestment of Amazon stock by Bezos since 2021.
At the time of the final sale, Amazon shares were trading at a price exceeding $167, reflecting a year-long gain of more than 76%. Prior to these transactions, Bezos held approximately 12.3% of Amazon’s outstanding stock as of February 2023. Following the sales, his control has decreased to around 11.8%.
Furthermore, it was disclosed in an annual filing that Bezos enacted the trading plan six days after publicly announcing his relocation from Seattle to Miami on Instagram. This move holds significant tax implications, as Bezos stands to save approximately $600 million in tax expenses related to the sales by becoming a Florida resident. Unlike Washington state, Florida does not impose a capital gains tax, making it a more favorable location for such transactions. Additionally, both states lack an income tax.
In addition to his role at Amazon, Bezos has proven his commitment to philanthropy. In 2018, he established the Bezos Day One Fund, which focuses on supporting homeless families and preschool education, with a pledge of $2 billion. Furthermore, in 2020, Bezos created the Bezos Earth Fund, allocating $10 billion to combat the urgent issue of climate change.
Analyst comment
Positive news: Jeff Bezos, founder of Amazon, sold $2.4 billion worth of stock as part of his planned sale of up to 50 million shares. His control over Amazon decreased to 11.8%. Bezos stands to save $600 million in tax expenses by relocating to Florida, which does not impose capital gains tax. Bezos has also shown commitment to philanthropy through initiatives like the Bezos Day One Fund and Bezos Earth Fund. The market is likely to react positively, as this indicates Bezos’s confidence in Amazon’s future prospects.
