Record Stock Sales Amid Amazon’s Ascendancy
Founder and executive chair of Amazon (NASDAQ:AMZN), Jeff Bezos, has recently seized the opportunity to unload nearly 24 million shares of the e-commerce behemoth. This strategic move, amounting to over $4 billion, aligns with the company’s soaring success this year.
Strategic Financial Maneuver
Bezos, who had not engaged in Amazon (AMZN) stock sales since 2021, now retains more than 964 million shares in the company. These recent transactions coincide with Amazon’s revelation that Bezos had adopted a trading plan allowing him to divest up to 50 million shares, equating to approximately $8.6 billion, before January 31, 2025.
The Miami Move and Tax Implications
Notably, Bezos initiated the trading plan shortly after announcing his decision to relocate from Seattle to Miami. Although the move was ostensibly to be closer to his parents and his spaceflight company Blue Origin’s Florida operations, the timing suggests a potential tax-driven motive. This is particularly germane due to Washington’s enforcement of a 7% capital gains tax in 2022 for gains exceeding $250,000 for state residents. Conversely, Florida does not impose state taxes on capital gains, implying substantial savings for Bezos.
Profitable Financial Forecast
Bezos stands to save at least $610 million in taxes for the 50 million shares earmarked for sale over the next year, according to estimations by CNBC. This advantageous financial move neatly complements Amazon’s prosperous performance, with the stock having surged by 13.4% this year until Bezos’s share sales on February 12. However, the stock experienced a minor 2.2% decline on the subsequent day. Despite this, Bezos remains the world’s second-richest individual with a formidable net worth of $193 billion, trailing only Elon Musk, as per the Bloomberg Billionaires Index.