Jeff Bezos to sell $5 billion of Amazon shares after stock hits record high

In a move that may raise eyebrows across the financial markets, Amazon founder and executive chair Jeff Bezos plans to sell almost $5 billion worth of shares in the e-commerce behemoth, according to a recent regulatory filing. This announcement follows Amazon’s stock reaching a historic high. Did Bezos see something others didn’t?

This sale marks Bezos’ second significant stock divestment. As we reported back in February, Bezos sold approximately $8.5 billion in shares after the stock surged 80% in 2023. He previously made headlines by unloading close to 12 million shares soon after revealing his strategy to gradually reduce his holdings over the upcoming year.

The latest intended sale of 25 million shares was disclosed through a filing notice with federal regulators, as reported by Reuters. During the session, Amazon’s stock hit an all-time high of $200.43. The stock has climbed over 30% this year, significantly outperforming the 4% gain in the Dow Jones Industrial Average index.

“The proposed sale of 25 million shares was disclosed in a notice filed after market hours on Tuesday. The stock had hit an all-time high of $200.43 during the session, Reuters reported.

The latest intended sale of 25 million shares was disclosed in a filing notice with federal regulators, as reported by Reuters. Amazon’s stock had reached an all-time high of $200.43 during the session and has surged more than 30% this year, significantly outperforming the 4% gain in the Dow Jones Industrial Average.

Post-sale, Bezos will retain ownership of about 912 million Amazon shares, or 8.8% of the company’s outstanding stock. The sale plan comes on the heels of Amazon’s robust first-quarter results in April, driven by the company’s advancements in artificial intelligence. Recently, Amazon appointed Matt Garman as the new head of its cloud computing unit, replacing Adam Selipsky.

The tech sector has been on a tear recently, fueled by expectations of multiple interest rate cuts in the latter half of 2024. These anticipated cuts are likely to boost the attractiveness of future earnings projections for tech companies, making them more appealing to investors.

Bezos, who stepped down as Amazon’s CEO in 2021 to become its Executive Chairman, founded the company in 1994, initially as an online bookstore. He also founded the space exploration company Blue Origin, which successfully launched a six-person crew to the edge of space in May.

With a staggering net worth of $214.4 billion, Bezos is currently the second-richest person in the world, according to Forbes and the Bloomberg Billionaires Index.