Amazon founder Jeff Bezos has announced plans to sell an additional 25 million shares of the company, valued at nearly $5 billion, following a previous sale of shares worth around $8.5 billion earlier this year. The decision comes as Amazon's stock market value reached a record high, with shares rising by over 30% this year due to expectations of increased earnings from its cloud computing business driven by growing demand for artificial intelligence (AI) technology. Despite Amazon's stock market valuation surpassing $2 trillion for the first time, it still lags behind other major technology firms like Nvidia, Apple, and Microsoft, which have crossed the $3 trillion mark. The company's robust quarterly earnings have demonstrated the success of its AI investments. Bezos, who founded Amazon in 1994, remains its largest shareholder and currently serves as its executive chair. He has been gradually selling off Amazon shares and has recently filed to sell 25 million shares, which would amount to about $5 billion. Bezos' decision to move from Seattle to Miami has raised questions about Washington state's capital gains tax, which imposes a 7% tax on gains from the sale of stocks and bonds. By relocating to Florida, which does not have a capital gains tax, Bezos has reportedly saved over $1 billion in taxes from his recent share sales. The capital gains tax in Washington generated $786 million in its first year, with a significant portion of the revenue coming from a small number of individuals. Bezos' ongoing share sales, totaling around $13.4 billion in 2024, have sparked speculation about his motives, including potential investments in his space company Blue Origin, personal ventures, and a rumored interest in owning an NFL team. Despite previous links to the Washington Commanders, Bezos did not formally bid on the team, which was eventually sold for $6.05 billion. His actions have drawn attention to the debate over capital gains tax and the financial implications of high-profile individuals relocating to avoid such taxes.
