(CTN News) – Over the past week, Jeff Bezos may have sold $4 billion worth of Amazon stock for €3.7 billion ($3.7 billion).
Amazon founder, Jeff Bezos, has not explained why he sold 24 million shares in the company he started, worth around $4bn (€3.7bn).
Regulatory filings confirmed the amounts the billionaire has offloaded in recent days – although he has yet to comment on the transactions. Amazon said in February that Bezos planned to sell 50 million shares via Morgan Stanley by January 2025.
Is now a good time to cash in?
According to pre-market estimates, Amazon’s shares were up 0.85% at $170.08 on Wednesday morning, after closing down 2.15% on 13 February in the US.
In the past year, the stock has gained more than 50%, bringing it close to its all-time high.
The company’s market capitalization reached $1.75 trillion.
Also recently, the company announced its fourth-quarter financial results, which delighted investors.
Compared to last year’s quarter, net sales grew by 14% to $170 billion (€156.9 billion), surpassing the market estimate of $166 billion (€153.1 billion).
Also, the retail giant posted net income of $10.6 billion (€9.78 billion), exceeding analysts’ predictions of $0.79 per share.
“We had a banner quarter and capped off a strong year for Amazon,” Andy Jassy, Amazon’s CEO, said.
A cutting-edge AI-powered shopping assistant named Rufus was also launched by Amazon, aiming to enhance the shopping experience for customers.
Since 2021, Bezos has not sold stock. Based on data from S&P Capital IQ Indicates via the Financial Times, he will still hold 9% of the company’s equity.
Capital gains tax avoided?
A report by accounting firm CPA Practice Advisor noted that Jeff Bezos recently moved from Washington to Miami in Florida. The move could have saved him $600 million in taxes.
As a result of living in Florida, he avoided this tax. If he sold all 50 million shares, he could have saved nearly $600 million.
Bezos said in an Instagram post in November that he was moving back to Miami to be closer to his family.
Lauren and I love Miami, and my parents recently moved back to Miami, where we lived when I was younger (Miami Palmetto High class of ’82 – GO Panthers!) I want to be close to my parents, and my parents love Miami.”
The move came two and a half years after he stepped down as Amazon’s chief executive.
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