Amazon Inc (NASDAQ: AMZN) CEO Jeff Bezos has dropped $ 3 billion in the e-commerce company’s stock value this week, according to a filing with the US Securities and Exchange Commission on Wednesday.
What happened: Bezos’ beneficial ownership profile shows that a total of one million common shares were sold on Mondays and Tuesdays. These deals are part of Amazon’s 10b5-1 trading plan – a strategy that allows insiders to sell shares on pre-set parameters.
With the recent purchase, Bezos sold off more than $ 10 billion worth of Amazon shares this year, but still holds more than 10% of the tech company̵7;s shares.
In August, the billionaire investor and businessman sold off shares worth $ 3 billion between $ 3,102.85 and $ 3,183.26. Before that, Bezos had sold around $ 4.1 billion worth of shares between January and February.
Why is it important: Bezos, in 2018, revealed that he sells about $ 1 billion of Amazon stock annually to fund Blue Origin LLC – the aerospace equipment company he founded in 2000.
In 2019, Bezos sold Amazon common stock worth about $ 2.8 billion.
Benzinga Take: Bezos doesn’t sell his stock on the open market, and 10b5-1 sales like this are commonplace for the Amazon CEO to fund other business projects he’s interested in, including Blue Origin and charity work. . This event does not necessarily reflect Bezos’ views on Amazon’s future stock performance.
Price action: AMZN closed 6.32% higher at $ 3,241.16.
Photo provided by City Council of Seattle via Flickr
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