Jeff Bezos Plans to Sell $5bn Worth of Shares in Amazon as Company Reaches $2 Trillion Valuation
Jeff Bezos, the founder of Amazon and the world’s second-richest person, is planning to sell nearly $5bn worth of shares in the technology giant. This comes as Amazon joins the exclusive club of companies with a $2 trillion valuation. The planned sale of 25 million shares was disclosed in a notice filed after market hours on Tuesday, with the stock price climbing to $200.43. This marks a 30 percent increase from the beginning of the year, far surpassing the average gain in the Dow Jones Industrial Average index.
Earlier this year, Bezos sold shares worth $8.5bn after the stock rallied 80 percent. With an estimated net worth of $214.4bn, Bezos is also the founder of space company Blue Origin, which recently launched a six-person crew to the edge of space.
Amazon’s value has been boosted by its increasing demand for artificial intelligence (AI), with companies relying on its cloud computing subsidiary, Amazon Web Services (AWS), for computing power and advanced software. AWS has signed major contracts, including building a “top secret” cloud for the Australian government for $1.3bn and enhancing collaboration with the United States. In addition to its cloud services, Amazon has announced plans to invest billions in expanding its cloud infrastructure in Singapore, Malaysia, and Thailand. The company’s strong financial performance and strategic investments indicate its position as a major player in AI revolution.
This latest proposed sale by Bezos comes as Amazon continues to grow and expand its business operations globally. Despite selling off some shares earlier this year, he still retains significant ownership stake in his company through his remaining 8.8% ownership percentage that amounts to approximately 912 million Amazon shares.
Overall, Jeff Bezos’ plan to sell more shares in Amazon highlights his continued confidence in his company’s continued growth potential and underscores his commitment to investing heavily in various initiatives such as AI development and international expansion.
