Jeff Bezos’s Plan to Sell 50 Million Amazon Shares by 2025; How Much Amazon Stock Does Jeff Bezos Own, And Who Are the Other Largest Shareholders?

Jeff Bezos, intends to divest up to 50 million shares of Amazon stock by January 2025, as per a regulatory filing disclosed on Friday. At the current market value, this equates to nearly $8.6 billion.

The planned stock offloading by Bezos was revealed in Amazon’s yearly report, which was released on Friday in accordance with a Securities and Exchange Commission mandate for such disclosures.

The announcement comes on the heels of the company’s announcement of a record-breaking holiday shopping season, propelling Amazon shares up by approximately 8% on Friday.

Although Bezos, aged 60, relinquished his role as CEO of the company he founded in 2021, he remains the chair of Amazon’s board.

Since stepping back from his daily operational responsibilities at the forefront of the e-commerce giant, Bezos has garnered attention primarily for his distinctive fashion sense, his relationship with fiancé Lauren Sanchez, and his ambitions in space exploration through his private enterprise, Blue Origin.

According to the annual report, Bezos who has devised a trading plan to divest up to 50 million shares of Amazon stock, with the plan set to conclude on January 31, 2025, subject to certain conditions; presently seems to be an opportune moment for Bezos to proceed with his divestment.

Amazon shares experienced a downturn in 2022 amidst fluctuations in pandemic-induced demand for e-commerce and broader economic uncertainties.

The incumbent CEO, Andy Jassy, has since implemented aggressive cost-saving strategies, including several rounds of extensive workforce reductions, leading to tens of thousands of job losses, some of which have extended into the current year.

However, Amazon’s stock has seen a remarkable recovery, surging by approximately 90% since hitting $84 per share in December 2022.

Moreover, Bezos’ recent relocation from Washington state to Florida means he could potentially sidestep state capital gains taxes on the stock sale.
Florida presently does not impose a capital gains tax, whereas Washington state introduced a capital gains tax legislation last year, as reported by the Seattle Times.

The Wealth Competition
Bezos finds himself trailing Elon Musk by $8.1 billion, making Musk the current wealthiest individual globally.

This narrowing gap between Bezos and Musk reflects contrasting movements in the stock prices of Amazon and Tesla.
Therefore, should Bezos proceed with his plan, it would mark his first instance of selling Amazon shares since 2021.

On Friday, Bezos experienced a substantial increase in wealth, surging by $12.1 billion, placing him $8.1 billion behind Elon Musk, as reported by the Bloomberg Billionaires Index. Bezos hasn’t held the top position on the index since 2021.

Amazon has profited from a resurgence in technology shares, propelling US stock indices to record highs, while Tesla has faced a series of adverse news stories.

Notably, Musk’s wealth could face a setback following a Delaware judge’s decision to invalidate his $55 billion compensation package earlier this week.

Who Owns Amazon
As of 2023, Jeff Bezos maintains ownership of 9.56% of Amazon and then regulatory filings indicate Bezos sold $240 million worth of shares and may continue reducing his stake in the tech giant.

It’s possible Bezos could sell additional AMZN shares valued at up to $1 billion over the next 12 months and the shares Bezos offloaded in November 2023 were designated as contributions to nonprofit organizations.

Even after these recent transactions, Bezos remains Amazon’s largest shareholder, holding a 9.56% stake.
Institutional investors such as Vanguard, Invesco (IVZ), and Fidelity (FIS) trail behind him, collectively owning approximately 29.6% of AMZN stock, with individual investors holding around 42.5%.

Currently occupying the position of the third wealthiest individual globally, Bezos holds a total of 988 million shares in Amazon subsequent to recent stock contributions.
He relinquished his role as CEO of Amazon in 2021 and intends to allocate a significant portion of his wealth to charitable causes.

Moreover, Bezos allocates approximately $1 billion worth of company stock each year to bolster liquidity for Blue Origin, his space technology enterprise.
Additionally, in 2020, Bezos launched the Earth Fund, a $10 billion initiative aimed at addressing issues related to climate change.

Interpreting Insider Selling
Peter Lynch, a renowned figure in Wall Street investment circles, famously stated, “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.” It is crucial for investors to evaluate the collective trading patterns of company insiders rather than individual transactions.

For example, significant attention should be paid if an insider purchases shares of a downtrodden stock amidst negative market sentiment, as it may indicate an impending bullish trend.

The presence of clustered buying, where multiple insiders acquire shares, can signal “communal optimism” regarding a company’s future prospects. Transactions executed by the executive management team, including CEOs and CFOs, should be prioritized over those of other directors and lower-level insiders.

Analyzing Recent Selling Activity And Its Implications For Amazon Stock
Considering recent developments, Amazon investors need not fret over Jeff Bezos’ divestment of shares. It is apparent that Bezos is liquidating his stake to fulfill regular philanthropic commitments, a fact disclosed earlier.

Amazon maintains its position as a premier Big Tech stock, demonstrating prowess across various growth sectors such as e-commerce, public cloud services, digital advertising, and online streaming.

The Last Bit, Jeff Bezos, currently ranked as the third wealthiest individual globally, holds 988 million shares in Amazon following recent stock contributions.

Stepping down as CEO in 2021, Bezos aims to allocate a significant portion of his wealth to charitable endeavours while also providing liquidity to his space-tech company, Blue Origin, through annual stock sales.

His commitment to philanthropy is accentuated by initiatives like the $10 billion Earth Fund launched in 2020 to address climate change issues.

While insider selling activity may raise concerns among investors, his philanthropic goals primarily drive Bezos’ divestment, and Amazon continues to remain a stalwart in Big Tech, dominating various growth markets such as e-commerce, public cloud, digital advertising, and online streaming.

Therefore, despite fluctuations in insider trading, Amazon’s long-term prospects continue to inspire confidence among investors.