In a notable financial move, Jeff Bezos, the founder of Amazon, has recently divested 24 million of his Amazon shares, yielding him a staggering sum exceeding $4 billion. This significant sale marks the first instance of Bezos parting with company shares since 2021, as reported by Bloomberg. It follows Bezos’s prior announcement of his intention to sell up to 50 million shares within the upcoming 12 months, yet remarkably, he has already offloaded nearly half of this proposed amount in a mere four days.
Amazon’s stock performance had experienced a notable surge of 13% earlier in the year. However, following the conclusion of Bezos’s recent share sales, the company’s stock witnessed a slight dip of 2.2%, settling at $168.64 on February 13.
The surge in Amazon’s online sales, notably the most significant since the onset of the pandemic, played a pivotal role in propelling the company’s stock price to soar by almost 8%, reaching $172. Consequently, Bezos’s wealth surged by a staggering $12.1 billion in just a single day, leaving him a mere $8.1 billion short of surpassing Elon Musk as the world’s richest individual, according to the Bloomberg Billionaires Index. Bezos hasn’t held the title of the world’s richest person since 2021.
Despite the immense financial gains, Bezos’s motive behind selling his Amazon shares remains undisclosed. However, it’s worth noting that Bezos had previously disclosed a significant personal decision: his relocation from the Seattle area to Miami.
Bezos’s relocation to Florida, a state renowned for its lack of capital gains tax, stands in stark contrast to Washington state’s imposition of a 7% tax on such earnings introduced in 2022. This strategic change in residency could potentially enable Bezos to save approximately $288 million in taxes.
The silence from both Amazon and Bezos regarding these transactions has been conspicuous, with no comments offered to Bloomberg. The ramifications of Bezos’s actions extend beyond his personal finances, potentially impacting Washington state’s revenue derived from capital gains tax.
This tax, which generated $855 million for Washington in 2023, notably relies on contributions from the state’s wealthiest individuals. Billionaire Ken Fisher recently announced his decision to relocate from Washington to Texas, citing the burdensome nature of the capital gains tax as a primary factor influencing his move.
In conclusion, Jeff Bezos’s substantial divestment of Amazon shares, coupled with his strategic relocation to Florida, underscores a significant shift in his financial strategy, while also raising broader implications for state revenues and taxation policies.
