Co-founder of Amazon.com Inc. Jeff Bezos has said that he plans to sell up to 50 million shares of the firm over the course of the next year.
This move might take advantage of the current rise in stock prices and perhaps return him to the top spot in the world’s wealth rankings.
This disclosure follows Amazon’s robust online sales growth, reaching its highest point since the early days of the pandemic.
The surge propelled Amazon shares by nearly 8% to $172, contributing to a substantial increase in Bezos’ wealth by $12.1 billion, bringing him $8.1 billion closer to Elon Musk, who currently holds the top spot on the Bloomberg Billionaires Index. Bezos last claimed the No. 1 position in 2021.
The decreasing distance between Bezos and Musk is due to various routes taken by the stock prices of Tesla Inc. and Amazon.com.
Bezos Plans $8.6B Amazon Stock Sale
Amazon gains from the rebound in tech stocks, which drives the US stock indexes to all-time highs, but Tesla struggles with bad press and is further hampered by a recent decision that nullifies Elon Musk’s $55 billion compensation plan.
Bezos, aged 60, has adopted a trading plan to divest 50 million shares by January 31, 2025, as revealed in a filing on Friday. At the current share price, this would amount to approximately $8.6 billion.
The disclosure aligns with Amazon’s annual report, adhering to new Securities and Exchange Commission regulations promoting transparency for corporate insiders involved in pre-arranged trading plans.
Amazon, based in Seattle, refrained from commenting on the planned stock sales. If Bezos proceeds with the plan, it would be his first sale of Amazon stock since 2021. Notably, he made a single share purchase in May, marking his first recorded buy since 2002.
Bezos recently confirmed that he was moving to Miami from the Seattle region, which sparked rumors that Washington state may lose tax money. Unlike Washington, Florida does not have a state capital gains tax, which might affect any tax windfall from Bezos’s share sale.