Jeff Bezos may sell $8.5 billion in Amazon (NASDAQ: AMZN) shares as the stock nears a new all-time high.
Jeff Bezos, the former CEO of Amazon, is considering selling up to 50 million shares of Amazon (AMZN) in the coming year, per a regulatory document made public on Friday. If Bezos proceeds with the sale at the current share price of Amazon, he stands to gain approximately $8.6 billion.
The planned stock sale by Bezos was disclosed recently in the annual report of Amazon. The Securities and Exchange Commission (SEC) mandates such disclosures for internal stock sales of this magnitude.
Bezos, the visionary behind the e-commerce behemoth, relinquished his position as CEO in 2021. However, he continues to preside over Amazon’s board of directors.
Amazon’s current share price hovers around $168, nearing its peak of $176 in 2021. This presents Bezos with an opportune moment to sell some of his shares amidst favorable market conditions.
In 2023, Amazon implemented a series of robust cost-cutting initiatives, including multiple rounds of layoffs. However, these austerity measures have yielded positive results for the company’s financial performance.
AMZN Stock Soars on Strong Q4 Earnings
Amazon recently reported a significant surge in revenue during the holiday season, with the company recording a quarterly profit of $10.6 billion in the last quarter of the year.
The fourth quarter marked “a record-breaking Holiday shopping season and concluded a strong 2023 for Amazon,” as stated by the Chief Executive of Amazon, Andy Jassy.
The positive announcement boosted investor sentiment, resulting in an 8% increase in AMZN stock on Friday.
Jesse Cohen, a leading analyst at Investing.com, remarked,
“The bottom line is that despite all the concerns plaguing the tech sector, Amazon has managed to perform surprisingly well. The results indicate that ongoing cost-cutting measures are having a positive impact on Amazon’s business prospects.”
Amazon (NASDAQ: AMZN) Stock Performance
AMZN stock dipped 0.87% to close at $170.31 on Monday. The traders had exchanged hands with 54,619,103 (54.61 million) shares compared to the average daily trading volume of 48.25 million.
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