At the beginning of the week, Amazon Inc’s chief executive officer Jeff Bezos announced that he will sell almost eight million Amazon shares this week for $1.1 billion as stated in a US securities filing last Friday.
These shares forms around 1.3% of Jeff Bezos’ overall holdings leaving him 16.4% worth of stakes in the American e-commerce company. The shares which will be selling his shares at an average price of $1,100 each was due to the stock of the e-commerce company trading above the $1,000 level again by as high as eight percent to $1,100 per share following a strong earnings report from the company.
Jeff Bezos has been known to sell huge stakes from his own company in the past couple of years despite maintaining an ownership of around 16% on Amazon which has grown tremendously this year.
This year, Amazon shares crossed the $1,000 level for the first time after it successfully held its annual Prime Day event that recorded billions in sales for the company just from the thirty-hour shopping event that was held in twelve countries aside from the United States. Deals and discounts were offered on more than 100,000 during the event leading to an increased audience and as well as a rise in the number of subscribers for their Amazon Prime membership program.
Since then, Amazon has continuously expanded its operations making a number of acquisitions and deals that allowed it to sell other products as well as increase the number of benefits and delivery options for its customers, particularly for their Prime members.
Amazon’s stock previously touched the $1,000 level last week following their upbeat earnings report that beat most analysts estimates. For the third quarter, the company was expected to post losses due to a number of acquisitions it made during the three-month period. This includes their Whole Foods acquisition worth $13.7 billion that allowed Amazon to expand its offerings to the grocery space.
However, the company was still able to gather a net income of $356 million for the quarter compared to their net income of $252 million for the third quarter last year. Amazon’s revenue also rose 34% for the third quarter to $43.7 billion compared to their revenue during last year’s third quarter of $32.7 billion. Sales of the company have also grown with the Amazon Web Services recording a 42% growth to $4.6 billion beating expectations of $4.51 billion. The slightly lower operating profits reported by Amazon for the quarter of $347 million was largely dismissed by analysts who mostly focused on the company’s upbeat growth outlook.
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