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Bezos just sold billions in Amazon shares. That doesn’t mean you should sell either.

Published: February 12, 2024 at 3:43 pm ET

Amazon.com Inc. founder Jeff Bezos sold $2 billion worth of shares in the e-commerce giant last week, but that’s not a signal that investors should join him in selling.

Bezos, currently the company’s chief executive, sold nearly 12 million Amazon shares AMZN at an average price of just over $170 in a series of transactions on Wednesday and Thursday. The sales, disclosed in a filing with the Securities and Exchange Commission on Friday, were his first since selling 60 million shares in 2021.

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Amazon.com Inc. founder Jeff Bezos sold $2 billion worth of shares in the e-commerce giant last week, but that’s not a signal that investors should join him in selling.

Bezos, currently the company’s chief executive, sold nearly 12 million Amazon shares AMZN at an average price of just over $170 in a series of transactions on Wednesday and Thursday. The sales, disclosed in a filing with the Securities and Exchange Commission on Friday, were his first since selling 60 million shares in 2021.

More selling could be on the way, VerityData research vice president Ben Silverman said, as Bezos recently approved a new trading plan that called for him to sell up to 50 million shares by the end of January 2025. The latest sale of 12 million shares came as part of this 10b5-1 plan, which was designed to trigger sales under certain predetermined conditions.

According to Silverman, the trading plan included a 90-day cooling-off period after it took effect, and Bezos’ sales last week began on the day that period expired.

“Bezos typically concentrates his activities over several days rather than engaging in weekly or monthly sales. Therefore, we expect more sales in the near future,” Silverman wrote in a recent report.

The stock was down 1.3% in Monday afternoon trading.

See also: Nvidia is now worth more than Amazon as the stock continues to soar

Amazon shares are trading about 8% below their record high reached in July 2021, and Silverman noted that Bezos’ recent sales fetched the highest price at which he has ever sold shares after accounting for stock splits.

Investors sometimes view stock sales by executives or board members, even those made as part of trading plans, as signs that the insider is making a valuation decision. However, Silverman noted that Bezos’ previous sales moves “did not make good predictions” for the performance of Amazon shares.

While Bezos held off on selling stocks in 2022 and 2023, Silverman noted that he gave away 14.6 million shares to nonprofits since his last stock sale in November 2021, according to a review of filings with the Securities and Exchange Commission.

Bezos still owns more than $168 billion in Amazon stock at current prices.

Amazon declined to comment on the recent stock sales.

Source: www.marketwatch.com

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Robert Wilson

Business & economics analyst. Breaking down intricate financial trends for informed decision-making.

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