In a recent filing with the Securities and Exchange Commission (SEC), Amazon’s executive chair, Jeff Bezos, revealed his intention to sell a substantial amount of Amazon shares in the coming year. The trading plan, adopted in November, outlines the potential sale of up to 50 million shares by January 25 of the following year, contingent on specific conditions. Notably, seven other high-ranking Amazon insiders also adopted trading plans in November, but Bezos’ plan involves the largest volume of shares.
Bezos currently holds over 988 million shares in Amazon, constituting a significant portion of his staggering $193.3 billion personal fortune, as reported by Forbes.
Stock Surge
The revelation coincides with Amazon’s impressive financial performance, reporting a surge in its stock price following fourth-quarter results. The e-commerce giant generated a staggering $169.96 billion in revenue and $10.6 billion in net income, leading to an 8% increase in its stock value, reaching $172. With this surge, Bezos stands on the brink of becoming the world’s richest person, as his wealth soared by $12.1 billion in a single day, narrowing the gap with current leader Elon Musk.
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The dynamics of the stock market have been instrumental in this shift, as Amazon benefited from a tech share rebound, while Tesla faced challenges, including negative headlines and a court voiding Elon Musk’s $55 billion pay package.
Tax Implications
Jeff Bezos, at 60, formulated a trading plan to sell 50 million shares by January 31, 2025, marking a significant move considering his last stock sale in 2021. The planned stock sales, including those of other board members and executives, were disclosed in Amazon’s annual report, aligning with SEC regulations for transparency in pre-arranged trading plans.
The timing of Bezos’ potential stock sale aligns with Amazon’s stock rally, rebounding by approximately 90% since its December 2022 low. Additionally, Bezos’ relocation from Washington to Florida potentially shields him from state capital gains taxes, as Florida currently lacks such taxes, while Washington has implemented a capital gains tax measure.