Jeff Bezos, the creator of Amazon.com Inc., has decided to give up to 50 million shares of Amazon stock in a strategic move coinciding with his transition from Seattle to Miami. This decision, as outlined in a regulatory filing, is part of a trading plan scheduled to conclude by Jan. 31, 2025. Bezos’s relocation is not merely a financial maneuver; it also reflects personal factors, including family ties and business operations.
Highlight Points:
Why are 50 million Amazon stocks going to sell?
In an Instagram post, Bezos conveyed the emotional depth behind his move, underscoring the significance of both familial and professional considerations. He shared, “My parents have always been my biggest supporters. They recently moved back to Miami, the place we lived when I was younger (Miami Palmetto High Class of ’82 — GO Panthers!). I want to be close to my parents, and Lauren [Sanchez] and I love Miami.”
Noteworthy developments in Miami, including its expected ascendancy to the position of U.S. Financial Capital, further underpin Bezos’s strategic decision. This relocation follows his engagement to Sanchez in the previous year, following his divorce from MacKenzie Scott in 2019.
Bezos also highlighted the strategic significance of Florida for Blue Origin, his aerospace venture. “Also, Blue Origin’s operations are increasingly shifting to Cape Canaveral,” he noted. “For all that, I’m planning to return to Miami, leaving the Pacific Northwest.” Blue Origin has been progressively expanding its presence in Cape Canaveral since 2015, marking a notable shift in its operations toward the Atlantic coast.
Reflecting on his time in Seattle, Bezos expressed sentimental attachment to the city where Amazon originated. “I’ve lived in Seattle longer than I’ve lived anywhere else and have so many amazing memories here,” he reminisced. Despite the excitement surrounding his new chapter in Miami, he acknowledged the emotional complexity of the move, stating, “As exciting as the move is, it’s an emotional decision for me. Seattle, you will always have a piece of my heart.”
Potential Losses in Washington State:
The financial implications of Bezos’s relocation are profound, particularly in light of Washington’s recent introduction of a 7% capital gains tax, from which Bezos will now be exempt in Florida. Given the approximate value of Amazon’s stock at $169 per share, Bezos’s holdings could be valued at around $8.5 billion. This move could potentially result in a substantial loss of capital gains tax revenue for Washington, estimated at approximately $595 million from Bezos alone.
The revenue generated from Washington’s capital gains tax is intended to bolster educational programs, underscoring the intricate interplay between individual financial decisions, state policies, and public services.
What is the price of purchasing Amazon stock?
In recent years, Amazon’s stock has been perceived as unattainable for many novice investors due to its high per-share price. However, the e-commerce behemoth underwent a 20-for-1 stock split in 2022.
This split significantly reduced the share price from its pre-split level of approximately $2,300 per share to a post-split price of $115 per share. By lowering the stock’s cost, Amazon aimed to make share ownership more accessible to novice investors.
Since the split in 2022, the share price has seen a slight increase. Nevertheless, purchasing a single share remains feasible for individuals embarking on their investment journey. As of early 2024, Amazon’s stock was trading at just over $150 per share.
If $150 per share still exceeds your budget, there’s no need to worry. There’s another option available that allows you to invest in Amazon shares with minimal funds
What is the total shares of Amazon?
Based on Amazon’s most recent financial disclosures and stock valuation, the company presently boasts a total of 10,250,000,000 outstanding shares. This figure remained consistent at the conclusion of 2023. Fluctuations in the number of outstanding shares typically occur due to stock splits and share repurchases
What is the Future Price of Amazon Stock?
Among 45 analysts providing one year price projections for Amazon stock, the average target stands at 182.29, ranging from a low estimate of 116 to a high estimate of 230. This average target suggests a 4.49% uptick from the current stock price of 174.45.
Despite Bezos’s significant investments in Florida real estate totaling $147 million over the past year, this relocation will afford him savings exceeding half a billion dollars in taxes. Whether driven by an affinity for Florida, a desire to be closer to family, or strategic business considerations, the financial advantage of tax savings is undeniable.
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