Amazon founder Jeff Bezos intends to sell up to 50 million shares of Amazon stock over the next year, as stated in a regulatory filing posted on Friday. The value of these shares would amount to nearly $8.6 billion based on the current stock price. This announcement comes shortly after Amazon reported a record-breaking holiday shopping quarter, leading to an 8% increase in the company’s shares on Friday.
Bezos, who stepped down as CEO in 2021 but remains the chair of the board at Amazon, disclosed his planned stock sale in the company’s annual report, following a Securities and Exchange Commission rule requiring such disclosures. Since relinquishing his daily duties at Amazon, Bezos has garnered attention for his unique fashion choices, his relationship with fiance Lauren Sanchez, and his space exploration endeavors through his private company, Blue Origin.
According to the annual report, Bezos has adopted a trading plan to sell up to 50 million shares of Amazon stock by January 31, 2025, subject to certain conditions. The timing of Bezos’ decision seems opportune, as Amazon shares experienced a decline in 2022 due to fluctuating demand caused by the pandemic and overall macroeconomic uncertainty. Current CEO Andy Jassy has implemented aggressive cost-cutting measures, including multiple rounds of layoffs, resulting in the loss of tens of thousands of jobs. Some layoffs have continued into this year.
However, Amazon’s stock has since rebounded significantly, surging approximately 90% from its low of $84 per share in December 2022. This positive trend suggests that Bezos’ decision to sell his shares at this time could be advantageous.
Another factor that may influence Bezos’ stock sale is his recent relocation from Washington state to Florida. By moving to Florida, Bezos can potentially avoid state capital gains taxes on the stock sale. Unlike Washington, Florida does not impose a capital gains tax. Washington implemented a capital gains tax measure last year, as reported by the Seattle Times.
In conclusion, Jeff Bezos, the founder of Amazon, plans to sell up to 50 million shares of Amazon stock, valued at approximately $8.6 billion. This decision was disclosed in the company’s annual report and comes after a successful holiday shopping quarter. Bezos’ move to Florida may also play a role in his stock sale, as it allows him to potentially avoid capital gains taxes. With Amazon’s stock rallying in recent months, Bezos’ timing appears favorable for maximizing his returns.