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When Jeff Bezos, CEO of Amazon (NASDAQ: AMZN), does almost anything, it’s top news. After all, he’s one of the richest people on the planet. And when Bezos buys or sells AMZN shares, others pay attention.
It’s also a matter of public wisdom when a business expert like Bezos buys or sells giant quantities of shares in his own company. It is a concept for the initiates to be attentive to this activity. Sometimes, it’s a real source of fear when an informant downloads a giant amount of your company’s shares.
Social media commentators were full of theories, some of which were implausible.
It only took a little fact check to demystify some of the most outlandish theories. In fact, the explanation of why getting rid of Bezos’ actions is not so troubling, after all. In addition, there is no obvious challenge with Amazon that inspires investors to sell their own shares now.
Some other people wouldn’t say that AMZN was once a $1.50 stock, but it’s true. That was many years ago, and today the action is a monster of more than $3,000.
The question of whether the percentage value is so high is a point of discord among some monetary commentators. The 12-month value-benefit ratio for AMZN percentages is 121.65.
We will have to take into account that in 2000, some of the generation stocks with the highest P/E relationships represented corporations that did not generate strong revenue. Amazon, on the other hand, is an incredibly lucrative business.
Therefore, the maximum valuation of AMZN shares may be justified because the company is one of the most outstanding and valuable companies in the world. So now we deserve to take a closer look at what the Amazon CEO has recently done with some of his actions. Equally important, we deserve why he did what he did.
You may have heard that in late July, Amazon released a fantastic report on the results of the quarter of the moment. With $5.2 billion in net profits and 40% sales growth, it’s no exaggeration to say that this time Amazon was given it out of the park.
That’s fine, but there are times that may have overshadowed Amazon’s successful earnings report. I mean the CEO’s sale of more than $3.1 billion shares in AMZN.
However, you don’t really have to worry here. It’s true that CEOs sell their shares because a company struggles. In the case of Bezos, however, there is a less disturbing explanation.
Bezo’s recent sale of $3.1 billion shares of AMZN, a component of what is known as a 10b5-1 plan. Sometimes corporate informants put in place a plan to sell predetermined amounts of their shares on a normal basis through SEC Rule 10b5-1.
In this way, they can earn gigantic amounts of their actions without being accused of violating insider trading regulations. Therefore, not all sales should be considered bad. Bezos followed regulations and sold some of his AMZN shares only in an orderly and predetermined manner.
Sometimes, it’s a major challenge when a company member discards a giant component of your company’s stock. However, it wasn’t so bad when Bezos sold some of his AMZN shares. It’s a business as usual and Amazon continues to deliver tons of packages and generates incredible revenue.
Sure Bezos sold Amazon shares, but that doesn’t mean you made the first impression on InvestorPlace.