Jeff Bezos to Sell Amazon Shares
Jeff Bezos, the founder of Amazon, intends to sell up to 25 million Amazon shares under a 10b5-1 trading plan. This decision comes after Amazon reported its first-quarter earnings, which exceeded expectations despite a cautious outlook.
Details of the Stock Sale
The sale, worth nearly $4.8 billion, is planned over the next two years. Bezos had previously sold $13.4 billion worth of Amazon stock in 2024. Following this new sale, he will own less than 9% of the e-commerce company. However, his remaining shares are valued at approximately $170 billion.
Understanding Rule 10b5-1
The 10b5-1 trading plan is a regulation by the Securities and Exchange Commission (SEC) that allows insiders at public companies to set up a plan to sell their shares ahead of time. This rule helps major shareholders avoid accusations of insider trading by scheduling the sale of a fixed number of shares at a set time.
Amazon’s First-Quarter Earnings
Amazon’s recent earnings report showed higher-than-expected profit and revenue, although the company’s forecast for operating income this quarter fell short of Wall Street’s expectations. Current CEO Andy Jassy mentioned that President Trump’s China tariffs might strengthen Amazon’s position in the retail market while putting traditional retailers at a disadvantage.
Controversy Surrounding Trump’s Tariffs
US Senator Elizabeth Warren wrote to Bezos, questioning whether Trump had threatened Bezos with policy actions against Amazon after a personal call between them. According to reports, Amazon had planned to display the impact of Trump’s tariffs on items but abandoned the plan after Trump’s call.
The TOI Tech Desk reported that Bezos’ decision follows Amazon’s first-quarter earnings report and is made under a prearranged trading plan intended to satisfy Rule 10b5-1(c), set to end on May 29, 2026.
