Jeff Bezos, the world’s third richest man and former CEO of Amazon, has recorded a $1.1 billion drop in net worth, bringing his total to $150.6 billion.
This loss is due to the dwindling share price of Amazon, which currently sells at $127 per share.
According to data from Forbes and Bloomberg’s billionaire index, Bezos’ billion-dollar loss is a result of Amazon’s approach to the distribution phase cycle of the stock market. Previously, shares sold at $129.04.
The distribution phase in stock buying and trading is when traders begin selling securities and market sentiment shifts from bullish to mixed. It marks the end of a market trend and the beginning of a change in direction, as explained by the Corporate Finance Institute.
Why Amazon shares may be rejected
Analysts speculate that Amazon shares may be rejected from the distribution phase and could start slipping by the end of this week, according to Coinbase. However, Amazon’s stock price has gained around 2.71% in a week and 11.20% in a month. In the last three months, AMZN shares surged by around 27.07% and 55.25% in the last six months of trade.
Jeff Bezos currently owns about 10% of Amazon, the world’s largest online retailer, according to the company’s 2023 proxy statement. On average, Amazon shares trade between $127.26 – $129.26 daily.
In other news, Amazon faced a lawsuit from the Federal Trade Commission (FTC). The commission claims that the e-commerce retail giant manipulated customers into signing up for automatically renewing Prime subscriptions. Amazon has refuted these claims as “false on the facts and the law.” FTC Chair Lina Khan has vowed to clamp down on online shopping and the power of America’s tech giants, as reported by BBC. So far, Amazon has been hit with three lawsuits.
Despite these legal battles, Amazon remains a powerhouse in the online retail industry with a net worth of $1.3 trillion.
