The richest man on the planet, Jeff Bezos has been selling stock at Amazon and buying Art. Investors are wondering if its a passing mood or newfound love.
Amazon founder and CEO, Jeff Bezos has sold $4 Billion worth of his Amazon shares since January 31, American business magazine, Forbes reported. The sell-out is a small portion of Bezos’ $55.55 million shares in the company.
In his most recent transaction on Thursday, he unloaded approximately 300,000 shares for $580 million (before tax) according to filings at Security Exchange Commission. In another report, Bezos bought two expensive pieces of artwork – Hurting the World Radio #2 by Ed Ruscha for $52.5 million and Vignette 19 by artist Kerry James Marshall for $18.5 million. So what do these reports combined mean for the current direction of interest for the Amazon boss?
For The Love Of Art
Jeff Bezos is selling out Amazon stock and buying art! The artworld is still speculating what it means for Amazon. One can buy and sell art pieces on amazon.in and the artist valuations are quite good. Bezos was seen trotting at a preview in November at Sotheby’s, one of the world’s largest brokers of fine and decorative art, jewellery and more. He set a record sale for artist Ed Ruscha work Hurting the World Radio #2 bought at $52.5 million at Christies auction and Vignette 19 by artist Kerry James Marshall for $18.5 million.
Art is undoubtedly a blue-chip investment and the art world is certainly excited. Art Dealer Josh Bare said in his newsletter, “Every season it seems someone new or some new region” comes in and starts buying art and props up the market – “but when it is the world’s richest man it has the chance to move the needle.”
Playing The Game
Before Bezos founded Amazon, in his twenties he was a portfolio manager with global investment firm D.E. Shaw. He rose to the Vice-president’s post in just 4 years which shows his impeccable foresight in spotting market trends. Amazon insiders say he can take a whiff and tell when the market will top.
So, does this selling means that the market is topping out? The company has immensely profited in the past year from its cloud storage system, streaming services, Amazon web services, voice-controlled smart device and more.
A day before the e-commerce wizard started selling out, Amazon announced stellar fiscal fourth-quarter earnings. In turn, sending Amazon stock value soaring to a whopping 12% in the next few hours, next day Amazon crossed three-trillion market cap mark. Bezos alone was responsible for 7% of Amazon’s daily trading volume on the day. On February 3 he alone was responsible for 12.5% of Amazon’s trade volume.
Jeff Bezos has sold more than $ 4 billion of Amazon shares in the past week.
These transactions are part of a pre-arranged trading plan. Showing us that Jeff Bezos knows very well what he is doing. Something similar was seen in 2017 when Charlie Lee of Litecon sold all of his LTC holdings when the crypto bull market topped. As of today, Forbes puts Bezos’ net worth at $126.9 billion. The man has sold more than $ 8 billion of Amazon shares in the past 5 years.
The Space Race
With his eyes set on moon and thoughts running fast to beat Elon Musk in the space race – Bezos has done massive sales in 2017 and 2019 but none so massive. In 2018 Bezos has stated that the proceedings will fund his privet space mission program Blue Origins.
While Elon Musk’s SpaceX mission aims to land on Mars and build a habitable colony; Jeff Bezos’ Blue Origin aims to send men and women on the moon by 2024 using a spacecraft called Blue Moon. The engine testing for lunar landing has already begun at the end of January 2020. Soon the next phase takes place with the human testing.
Some market experts speculate that Bezos splashed the money just to catch up in the space race with Musk.