In his latest round of stock selloffs, Amazon founder and former CEO Jeff Bezos has sold another $2 billion worth of Amazon shares this month, per securities filings.
Since the beginning of November, Bezos has now divested over $4 billion of his Amazon holdings. The aggressive selling has corresponded with a 5% drop in Amazon’s stock price over the same period.
The moves have sparked speculation as to Bezos’ motives. While the billionaire entrepreneur has been consistently selling about $1 billion of Amazon stock annually to fund his space exploration company Blue Origin, this month’s dump is seen as unusual.
Some analysts view the rapid shedding of Amazon shares as a vote of no confidence by Bezos in the company’s future prospects. E-commerce growth has stalled while the cloud business faces increasing competition and government inquiries.
Others believe Bezos is simply seeking more diversification. His net worth still overwhelmingly tied to just one asset — Amazon stock — which remains near all time high valuations.
Regardless of rationale, the stock sales represent a fraction of Bezos’ overall 16% stake in Amazon, worth over $100 billion at today’s prices. Yet they have put pressure on Amazon’s stock and invited greater scrutiny over the company’s health as it enters an uncertain macroeconomic environment.
With Bezos showing no signs of halting his selling, the tech giant may face further volatility if the billionaire founder and largest shareholder continues dumping stock.
