Jeff Bezos Loses $1.1B in Amazon Share Plunge
Home Uncategorized Jeff Bezos Loses $1.1B in Amazon Share Plunge
Uncategorized - June 30, 2023

Jeff Bezos Loses $1.1B in Amazon Share Plunge

Jeff Bezos, the former CEO of Amazon and the world’s third richest individual, has experienced a decline in his net worth by $1.1 billion, resulting in a total fortune of $150.6 billion. 

This decrease can be attributed to the diminishing value of Amazon’s shares, which are currently trading at $127 per share.

Based on information provided by Forbes and Bloomberg’s billionaire index, Jeff Bezos’ recent billion-dollar loss can be attributed to Amazon’s approach during the distribution phase cycle of the stock market. Previously, Amazon’s shares were valued at $129.04 before experiencing a decline.

As per the Corporate Finance Institute, the distribution phase in stock buying and trading signifies a transition where traders commence selling securities, leading to a shift in market sentiment from bullish to mixed. This phase indicates the conclusion of a market trend and marks the onset of a directional change.

Reasons why Amazon shares may be rejected

Speculations from analysts at Coinbase suggest that Amazon shares might face rejection during the distribution phase and could potentially start declining by the end of this week. However, it is noteworthy that Amazon’s stock price has observed a gain of approximately 2.71% over the course of a week and 11.20% within a month. 

Furthermore, in the last three months, AMZN shares have experienced a surge of around 27.07%, and over the past six months, the increase has been approximately 55.25%.

According to Amazon’s 2023 proxy statement, Jeff Bezos currently holds approximately 10% ownership of the company, which is recognized as the largest online retailer globally. On average, Amazon shares are traded within the range of $127.26 to $129.26 on a daily basis.

All you need to know

Amazon found itself entangled in a legal dispute as the Federal Trade Commission (FTC) filed a lawsuit against the company. According to the commission, Amazon allegedly employed tactics to coerce customers into subscribing to Prime memberships with automatic renewals. 

Amazon vehemently denies these allegations, asserting that they are devoid of factual and legal basis. FTC Chair Lina Khan, as reported by BBC, has expressed her determination to tighten regulations surrounding online shopping and curtail the influence wielded by major tech companies in the United States. To date, Amazon has been confronted with three separate lawsuits.

Despite these ongoing legal challenges, Amazon continues to dominate the online retail landscape, boasting an impressive net worth of $1.3 trillion.

Back story

Jeff Bezos, the renowned billionaire and former CEO of Amazon, has retained his position as the third wealthiest individual globally. Bezos held the title of the world’s richest person on Forbes’ annual list of the World’s Billionaires from 2018 to 2021, momentarily slipping to the second spot on the 2022 billionaires list.

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