Jeff Bezos Sells $1.5B in Amazon Shares – See His Current Stake
▼ Summary
– Jeff Bezos sold 6.6 million Amazon shares worth $1.5 billion on July 21-22 under a prearranged Rule 10b5-1 trading plan.
– Rule 10b5-1 allows company insiders to schedule share sales in advance to avoid insider trading allegations.
– Bezos plans to sell more shares in the future, with a regulatory filing indicating he may sell up to 25 million shares by 2026.
– Over the past two years, Bezos has sold approximately $4.8 billion worth of Amazon stock but still holds 4.6 million shares valued at $1 billion.
– The 10b5-1 rule was introduced to clarify securities fraud regulations under the Securities Exchange Act of 1934.
Jeff Bezos has offloaded $1.5 billion worth of Amazon stock in recent transactions, continuing a trend of significant share sales by the billionaire founder. The move, disclosed in regulatory filings, involved approximately 6.6 million shares sold over two days in late July. These transactions occurred just before Amazon’s second-quarter earnings announcement, raising questions about timing, though the sales were executed under a prearranged 10b5-1 trading plan, which shields insiders from allegations of impropriety.
The 10b5-1 plan is a regulatory mechanism allowing corporate insiders to schedule stock sales in advance, eliminating concerns about trading on non-public information. Established by the SEC, it provides a structured way for executives to divest shares without facing legal scrutiny. Bezos has utilized this strategy multiple times, with filings indicating his intention to sell up to 25 million shares by mid-2026.
This latest sale follows a pattern of divestment by the Amazon founder, who has unloaded nearly $4.8 billion in company stock over the past two years. Despite these reductions, Bezos retains a substantial stake, holding 4.6 million shares valued at roughly $1 billion. His continued reliance on 10b5-1 plans suggests further sales could be on the horizon.
The timing of these transactions often sparks speculation, particularly when they precede major corporate announcements. However, the structured nature of 10b5-1 plans ensures compliance with securities laws, offering transparency to investors. Other high-profile executives, including Nvidia’s Jensen Huang, have similarly leveraged these plans to manage their equity positions.
As Amazon prepares for its next earnings release, market watchers will be scrutinizing how these sales align with the company’s performance. While Bezos’s stake remains significant, his gradual divestment reflects a broader strategy among tech leaders to diversify their portfolios while maintaining influence over their founding companies.
(Source: Times of India)
