As Amazons stock price continued to rise, Bezos, the companys founder, decided to cash in. Amazon CEO Jeff Bezos reduced his stake in Amazon stock by more than $3.1 billion this week, according to SEC documents.
As of this reduction, Bezos has realized 7.2 billion US dollars (about 50 billion yuan) on Amazon this year. Bezos sold 2 million Amazon shares worth $4.1 billion between January 31 and February 6, according to regulatory filings.
According to Beijing Evening News, most of Bezoss wealth is related to Amazon. Amazon shares are up about 73% so far this year, boosted by increased demand for online shopping and cloud services during the new crown epidemic. As the richest man in the world, Bezos can make money and spend money. Bezos spent $165 million to buy Warner manor, setting a record for residential sales in Los Angeles. Located in Beverly Hills and covering an area of 36000 square meters, Warner manor was designed in the 1930s for Jack Warner, the late former president of Warner Brothers films. This is not the first time Bezos has bought a luxury house this year. Earlier this year, Bezos bought three apartments on Fifth Avenue in New York for about $80 million. The total area of the three apartments is 1579 square meters.
The crazy stock price has further raised Bezos value. His net assets have soared by 74 billion dollars this year. His personal wealth is close to 190 billion dollars, far ahead of the second ranked Bill Gates wealth of 106.5 billion dollars.
What helped Amazon?
The U.S. epidemic has helped Amazons business even beyond the markets expectations. After Amazon released its financial data of Q2 in 2020 a few days ago, its brilliant report card stunned Wall Street.
According to the financial report data released by Amazon, a brokerage in China, the companys sales in the second quarter of 2020 increased by 40% year-on-year to 88.9 billion US dollars. Operating profit was $5.8 billion, well above the guideline of $1.5 billion. Given that Amazon spent more than $4 billion on health event related spending in the second quarter, the figure is even more striking. Earnings per share were $10.30.
The overall surprise of Amazons business and performance also gave Bezos an opportunity to spare some energy and capital. On the use of funds after the reduction of Amazon, Bezos has previously said that he plans to sell Amazon shares worth about $1 billion a year to fund his commercial space company Blue origin.
Amazon founder Bezos has been paying close attention to SpaceX, the space technology company of Tesla founder musk, and has talked about each other on social media for many times. Bezos has long been inclined to increase the size of blue origin company. Now, Amazons business and share price provide it with an excellent opportunity.
Previously, according to overseas.com, he invested most of Amazons wealth in space technology development through his space company Blue origin. In a TV show, Bezos talked about some of the motivations for investing in space.
Bezos told the host in the CBS Evening News. I think its important for the planet. I think its important for the vitality of future generations. This is something I care about very much. Its something Ive been thinking about all my life.
Bezos told the host that when he was a child, he had a strong interest in exploring space when he saw American astronauts Baz aldrin and Neil Armstrong landed on the moon. In addition, Bezos said the development of space technology is crucial for the long-term future of mankind.