Jeff Bezos has sold shares in the company he founded, Amazon.com (NASDAQ: AMZN), before. But in February, the size of his sales was extraordinary. He sold approximately 50 million shares, which were worth $8.5 billion. The FT suggests he may have done so because Amazon’s stock has had an amazing run, as have the shares of several other mega-cap tech corporations.
Bezos is the second richest person in the world, with a net worth of $202 billion, much of which is in Amazon stock. Amazon’s market cap is $1,86 trillion, which makes it the sixth most valuable stock traded on US exchanges. Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), Saudi Aramco, and Alphabet (NASDAQ: GOOG) are ahead. Apple’s share might rise if it can cut an AI deal with Google.
Amazon’s shares are up 81% in the last year, compared to 40% for the Nasdaq. It has outperformed other tech stocks like Apple and Alphabet. When stocks jump at a pace like Amazon’s, investors worry they are ready for a reset–down.
Amazon’s recent earnings have been good but not extraordinary. In the fourth quarter of last year, revenue rose 14% to $170 billion, and net income soared from $278 million to $10.6 billion. One worry about the results was the modest increase in revenue at AWS, Amazon’s massive cloud business. Its revenue rose only 13% to $24.2 billion, and operating income rose 38% to $7.2 billion. Cloud computing is among the most competitive sectors in the tech world.
Amazon has what could be a significant weakness. It is not a major AI play like Microsoft and Nvidia. Apple’s lack of AI products is one reason its stock has done so poorly this year. Amazon must show that it is more than an e-commerce and cloud computing company.
Why did Bezos sell such a large number of shares? Perhaps he thinks Amazon’s stock is near a peak.
ALERT: 5.25% Yield Is 8x National Average (Sponsored)
Robinhood Gold just rolled out a wild 5.25% APY yield for members, a whopping 8x the national average and way better than treasuries.
Earn an eye watering amount of money while you sleep. Sign up today — click here to start earning today.
The post Jeff Bezos Sells $8.5 Billion In Amazon Stock. appeared first on 24/7 Wall St..
Click this link for the original source of this article.
Author: Douglas A. McIntyre
This content is courtesy of, and owned and copyrighted by, https://247wallst.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact USSANews.com using the email address in the Contact page found in the website menu.