Jeff Bezos is all set to sell 50 million Amazon shares by the end of January 2025, as revealed by Amazon’s annual report. The sale plan was adopted in November 2023 and is subject to certain conditions.
Amazon shares are currently trading at $171.81—a sharp rise of 90% since December 2022, when demands dwindled as effects of the pandemic. This would make the sale worth $8.6 billion.
Amazon’s shares saw an 8% surge on Thursday after its earnings release, taking its market cap to $1.78 trillion.
An interesting thing to note is that Bezos has recently moved to Florida from Washington. WA imposes a capital gain tax of 7%, which would have taken more than $602 million out of Jeff’s sales proceeds. However, now that he is in Florida, no such tax obligation lies on him.
Amazon Turns To AI
Amazon’s AI approach has helped the business massively. The company hasn’t looked back since the demand drop in 2022.
The e-commerce giant launched an AI assistant called Rufus, as recently as this Thursday, with knowledge of the entire product catalog, FAQs, shopping policies, and customer reviews. This will help customers find products they are looking for quicker.
It has also launched a chatbot named Q, that will help its AWS customers to transform user interaction. You can even use it to generate content and take action on your behalf.
Another interesting Amazon feature is its AI-powered review summaries. You can read crisp summaries of all reviews of a particular product, instead of going through multiple reviews. This not only saves you time but also helps you find the right product for your needs.
All these innovations have seemed to help Amazon in its e-commerce business. This is now evident with its rising share prices.
Some experts have questioned whether it is the right time for Bezos to cash out, considering the fact that Amazon shares might sore even more in the coming few years.
However, with a net worth of $193.8 billion, Bezos is third on the list of the richest people in the world, as of now. The decision to cash out might not entirely be dependent on financial motives. Considering that he stepped down as Amazon’s CEO in 2021, Bezos might be preparing for a life of calm as he nears retirement.
Whatever the case might be, it will be interesting to see how Amazon grows by the time Bezos cashes out and how the stocks react once he leaves.