Jeff Bezos, the founder of Amazon, has announced his plan to sell 50 million Amazon shares by January 2025, according to Amazon’s annual report. The sale plan was adopted in November 2023 and is subject to certain conditions.
Amazon’s shares have experienced a significant increase in value, currently trading at $171.81. This represents a rise of 90% since December 2022 when the demand for stocks decreased due to the effects of the pandemic. The sale of these shares would amount to approximately $8.6 billion.
Following the release of its earnings report, Amazon’s shares surged by 8% on Thursday, leading to a market cap of $1.78 trillion.
An interesting aspect to note is Bezos’ recent move from Washington to Florida. By relocating, Bezos avoids Washington’s capital gain tax of 7%, which would have deducted over $602 million from his sales proceeds.
Amazon Embraces AI
Amazon has successfully utilized artificial intelligence (AI) to drive its business forward. Since the drop in demand in 2022, the company has continued to innovate.
Recently, Amazon introduced an AI assistant named Rufus, which possesses knowledge of the entire product catalog, FAQs, shopping policies, and customer reviews. This AI assistant aims to help customers find products more efficiently.
In addition, Amazon has launched a chatbot called Q, specifically designed to enhance user interaction for its AWS customers. Q can generate content and take action on behalf of users.
Another notable AI-powered feature offered by Amazon is its review summaries. Instead of reading multiple reviews, customers can now access concise summaries for a particular product. This saves time and assists in finding the most suitable product.
All these AI innovations have contributed to Amazon’s success in the e-commerce industry, as reflected in its rising share prices.
Some experts have raised questions about the timing of Bezos’ decision to sell his shares, considering the potential for further growth in Amazon’s stock value in the coming years.
However, with a net worth of $193.8 billion, Bezos currently ranks as the third richest person in the world. His decision to cash out may not solely be driven by financial motives. As Bezos stepped down as Amazon’s CEO in 2021, he may be preparing for a more relaxed life as retirement approaches.
Regardless of the reasons behind Bezos’ decision, it will be intriguing to observe how Amazon evolves leading up to his stock sale and how the market reacts once he departs.