It is worth mentioning that as of August 7, Beijing time, as of August 7, Amazons share price rose 52 points more than that of Alibaba. 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.
Bezoss space technology company Blue origin was founded earlier than Musks SpaceX, but it was robbed of its limelight. Bezos promised earlier this year that he planned to sell at least $1 billion of Amazon stock a year to fund his commercial space company, blue origin.
Share prices soared by more than 70%, and Amazon founders wealth soared
Although the U.S. economy fell into the worst depression in 20 years due to the epidemic, it helped Amazon, a US stock giant, to soar.
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.
Amazon CEO Bezos sold 454338 shares of Amazon shares on August 3, with an average price of $3125.63 and a total of $1.42 billion, according to SEC documents. After the reduction, Bezos held 55 million shares of Amazon stock.
Although the overall depression of the U.S. economy was caused by the outbreak of the epidemic in Europe and the United States, Amazon became the favorite of the US stock market during the economic depression due to its special industry attribute -- Internet entertainment and e-commerce.
As of August 7, 2020, Amazons stock price has risen to around $3167 this year, up 71.4%. 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.
Ironically, Amazons share price has risen by more than 70% this year, far more than that of Alibaba, which rose only 19% in the same period. Similar to Amazon, Alibaba is also a giant providing internet entertainment and e-commerce services.
Market participants believe that Amazons share price has surpassed Alibaba by 52 points in the same period, largely because the epidemic situation in the United States is more crazy, people in Europe and the United States have greatly reduced their travel time, and the number of goods purchased through Amazon online stores has increased greatly, which also makes Bezoss wealth soar this year.
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.
Although Wall Street analysts predicted that Amazon would make a lot of money before the financial report was disclosed, no one expected that Amazon would make more than expected. According to the financial data disclosed by Amazon, 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 most eye-catching was net profit of $5.243 billion in a single quarter, up 100% from $2.625 billion in the same period of last year, making it the largest single quarter performance in Amazons history. Looking ahead to the third quarter, Amazon expects sales of $87 billion to $93 billion, up 24% to 33% year-on-year, higher than Wall Streets current forecast of $86.4 billion.
Based on these amazing results, an analyst on Wall Street recently said that Amazon shares could rise by another 20%. Nancy tengler, chief investment officer of Laffer tengler investments, said the companys rapid sales growth would drive the stock higher. Another analyst suggested the stock would rise as institutions that do not own the stock will need to catch up. Craig, an analyst at Piper Sandler, said sellers analysts would have to raise their expectations after the earnings announcement.
The reduction comes from the competition between two men in space?
Market participants believe that Bezos is unlikely to release funds for other projects that need to burn money in the downturn stage of Amazon, which may be a major consideration for Bezos to reduce its stake in Amazon. When Amazons performance is getting better and better, Bezos has enough reason to support his personal dream.
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.
Chinese reporters from securities companies have noticed that Amazon founder Bezos has been following SpaceX, a space technology company founded by 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.
Because Bezoss space technology company Blue origin was even two years earlier than the founding of SpaceX, but its popularity was far lower than that of SpaceX. Blue origin was founded by Bezos in 2000, and has been called the dual leader of private aerospace in the United States together with SpaceX.
In May, SpaceXs Dragon spacecraft has successfully carried two astronauts to the international space station. And this successful round-trip also shows that SpaceX really has the capability of commercial manned spaceflight. On July 21 this year, SpaceX launched another mission, successfully launching the first dedicated military communication satellite of South Korea, anasis-ii, into space. After this launch, the rocket was successfully recovered again and returned to the unmanned recovery ship at sea.
On August 3, NASA astronauts Robert Behnken and Doug Hurley successfully returned to earth in the SpaceX dragon spacecraft. This is the first time that NASA astronauts travel to and from space in a commercially built spacecraft, and it also marks the beginning of a new era of commercial manned spaceflight in the world.
SpaceX, the founder of Tesla, seems to be the spokesperson of commercial space technology companies in the United States, attracting attention in a series of news events. In contrast, Amazon founder Bezos Blue origin company, though founded two years earlier than SpaceX, is still unknown.
However, since the beginning of this year, Bezos has begun to strengthen its support for blue origin. According to media reports, in February this year, blue origin announced on twitter that it would open a new rocket engine production center in Huntsville, Alabama. Blue origin said the new Huntsville plant will be able to produce rocket engines at a higher rate than at present. Blue origin said it would deliver the first production of be-4 engines this year and to ula to integrate them into the Vulcan launch vehicle for the first static ignition test. Blue origin has also made some progress on contracts, such as a big contract from the U.S. Air Force in 2018 to continue developing the new Glenn launch system. In addition, blue origin will continue to develop the new Shepard rocket in 2020, which can take off and land vertically, hoping to be used for human space tourism in the future. SpaceX entered a new era of commercial manned spaceflight in the world for the first time in August 2020, which also means that the potential of commercial contract has been opened. This is the smart point of Bezos. That is, after seeing that his opponent has helped him to prove that the commercial potential is huge, blue origin will strengthen its competition for future commercial contracts, which obviously requires Bezos to give blue origin more funds in terms of funds Hold. Source of this article: Yang Bin, responsible editor of securities companies in China_ NF4368
Blue origin has also made some progress on contracts, such as a big contract from the U.S. Air Force in 2018 to continue developing the new Glenn launch system. In addition, blue origin will continue to develop the new Shepard rocket in 2020, which can take off and land vertically, hoping to be used for human space tourism in the future.
SpaceX entered a new era of commercial manned spaceflight in the world for the first time in August 2020, which also means that the potential of commercial contract has been opened. This is the smart point of Bezos. That is, after seeing that his opponent has helped him to prove that the commercial potential is huge, blue origin will strengthen its competition for future commercial contracts, which obviously requires Bezos to give blue origin more funds in terms of funds Hold.