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Why Jeff Bezos Sold $6 Billion of Amazon Stock This Week



The former CEO of Amazon and third-richest person in the world, Jeff Bezos, sold $6 billion worth of the company's shares between February 7 and February 14, according to documents filed with the Securities and Exchange Commission.


KEY KNOWLEDGE
  • Three months ago, Amazon founder Jeff Bezos announced that he was returning to Miami, the city of his high school education and the home of his parents.
  • By making this move, Bezos is able to evade the 7% capital gains tax that the state of Washington, where he has resided for a long time, implemented three years ago.
  • Bezos recently sold a significant quantity of Amazon shares, adhering to a stock selling strategy that is approved for affluent company officials.






    • More than 20 million shares of Amazon.com Inc (AMZN), the business he created in his Seattle garage thirty years ago, have been sold by Jeff Bezos in the last week.


    He is adhering to a company insider-only recommended strategy, and the tax burden on the transaction will be lowered as a result of his recent cross-country relocation.


    Bezos sold Amazon shares for the first time since November 2021. Even though it was a sizable sum of money, Bezos still controls more than 952 million shares of Amazon, valued at more than $160 billion, thus the transaction only made up 3.6% of his total stake.

    Welcome (Back) to Miami

    Six days before Bezos unveiled his 10b5-1 plan, he disclosed he was moving to Miami. He attended high school there in the early 1980s, and his parents still live in nearby Coral Gables. He reportedly bought two estates valued at a combined $147 million in Indian Creek Village, an island north of Miami Beach.

    In addition to returning to his roots, the move also allows Bezos to avoid state taxes on his stock divestitures.


    However, three years ago, the state of Washington implemented a 7% capital gains tax, which is not a tax that Florida has. By moving to the other coast, Bezos is reported to have saved $430 million in state taxes.