Jeff Bezos, the founder of Amazon, is planning to sell and divest up to 50 million shares of Amazon stock in 2024. At the current stock price, these shares would amount to nearly $8.6 billion.
The announcement of Bezos’ intended stock sale was disclosed in Amazon’s annual report, following a Securities and Exchange Commission rule mandating such declarations.
This news surfaces on the heels of Amazon’s report of a record-breaking holiday shopping quarter, resulting in an 8% surge in Amazon’s shares on Friday, February 02.
Although Bezos, 60, relinquished his position as the CEO of Amazon in 2021, he continues to serve as the chair of the board.
Post his daily operational role at the e-commerce giant, Bezos has often made headlines for his distinctive fashion choices, his relationship with fiancée Lauren Sanchez, and his space exploration endeavors through his private company, Blue Origin.
The annual report details that Bezos has adopted a trading plan to sell up to 50 million Amazon shares by January 31, 2025, subject to specific conditions.
Given the recent positive trajectory of Amazon’s stock, Bezos appears to have chosen an opportune moment for the sale.
In 2022, Amazon shares experienced a downturn amid fluctuations in pandemic-driven demand for e-commerce and broader economic uncertainties.
Current CEO Andy Jassy responded with aggressive cost-cutting measures, including multiple rounds of layoffs affecting tens of thousands of employees, some of which have extended into this year.
Despite the earlier setbacks, Amazon’s stock has made a significant recovery, surging approximately 90% from its low of $84 per share in December 2022.
Notably, Bezos’ relocation from Washington state to Florida could also play a strategic role in the stock sale. Florida’s absence of a capital gains tax means Bezos could potentially avoid such levies, while Washington, his former home state, introduced a capital gains tax measure last year.
