Amazon founder Jeff Bezos is planning to sell nearly $5 billion worth of the tech giant’s stock as its share price reaches an all-time high. This move comes as Amazon joins the exclusive club of companies valued at $2 trillion, with shares surging 30 percent since the beginning of the year.
The proposed sale of 25 million shares was disclosed in a regulatory filing, with Bezos set to own about 8.8 percent of the outstanding shares once approved. Bezos previously sold $8.5 billion worth of stock in February after an 80 percent rise in 2023, bringing his estimated net worth to $214.4 billion according to Forbes.
Amazon’s value has been buoyed by the increasing use of artificial intelligence globally. Companies are flocking to its cloud computing subsidiary, Amazon Web Services (AWS), for its advanced software and computing power, contributing to the company’s growth. AWS recently secured a $1.3 billion contract with the Australian government to build a “top-secret” cloud for military and intelligence agencies.
This agreement aims to enhance interoperability and collaboration with the United States, a key military ally of Australia. Additionally, Amazon announced a $9 billion investment in Singapore to expand its cloud infrastructure, following similar investments in Malaysia and Thailand.
Overall, Amazon’s success in the AI and cloud computing sectors has driven its soaring valuation, positioning it as a major player in the AI revolution according to Wedbush technology analyst Dan Ives. Bezos, in addition to his role at Amazon, is also the founder of space company Blue Origin, which recently sent a crew to the edge of space.
As Bezos prepares to sell a significant portion of his Amazon shares, the tech giant continues to make strategic investments in cloud services and AI, cementing its position as a leader in these rapidly growing sectors.
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https://www.aljazeera.com/news/2024/7/4/jeff-bezos-to-sell-5bn-in-amazon-shares
