Jeff Bezos, the former CEO of Amazon, has announced plans 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.
The current trading price for Amazon shares is $171.81, which marks a significant increase of 90% since December 2022 when the demand for the company’s products declined due to the pandemic. This sale is estimated to be worth $8.6 billion.
Following the release of its earnings report, Amazon’s shares experienced an 8% surge on Thursday, resulting in a market cap of $1.78 trillion.
An interesting aspect to note is that Bezos recently relocated from Washington to Florida. By moving to Florida, Bezos avoids a capital gain tax of 7% imposed by Washington, which would have deducted over $602 million from his sales proceeds.
Amazon Embraces AI
Amazon’s utilization of artificial intelligence (AI) has played a significant role in the company’s success. Since the drop in demand in 2022, Amazon has continued to thrive.
The e-commerce giant recently introduced an AI assistant named Rufus, which possesses knowledge of the entire product catalog, frequently asked questions, 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, designed to enhance user interaction for its AWS customers. Q can generate content and take action on behalf of users.
Another noteworthy AI feature offered by Amazon is AI-powered review summaries. Instead of reading multiple reviews, customers can now access concise summaries of product reviews, saving them time and assisting in finding the most suitable product.
All these AI innovations have contributed to Amazon’s success in the e-commerce industry, as evidenced by its rising share prices.
Some experts have raised questions about whether it is the right time for Bezos 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 sell shares may not be solely driven by financial motives. As Bezos approaches retirement after stepping down as Amazon’s CEO in 2021, he may be preparing for a more relaxed lifestyle.
Regardless of the reasons behind Bezos’ decision, it will be intriguing to observe how Amazon evolves leading up to his share sale and how the stock market reacts once he departs.