- Jeff Bezos dumped $ 1. billion worth of AMZN shares just as Amazon became a trillion- dollar company.
- Bezos worked as a portfolio manager in his twenties, which means he is proficient in identifying market cycles.
- Bezos could be selling more shares in the coming days.
The smart money is cashing out right before our eyes and the richest man on the planet is spearheading the fire sale.
Amazon chief executive Jeff Bezos dumped a boatload of AMZN shares last week. according to Open Insider . In a series of sales, Bezos distributed , (shares of his company for a whopping $ 1.) billion.
To me, this is a sign that the local top is in for AMZN shares. Amazon had a stellar earnings report for the quarter ending December and Bezos grabbed the opportunity to sell at all-time highs. One hedge fund manager believes that Amazon’s CEO knows when a market tops out.
Bezos Worked as a Portfolio Manager at a Global Investment Company
Before Bezos founded Amazon, the richest man in the world was once a portfolio manager at global investment firm DE Shaw. CNBC reports that Bezos became one of the company vice-presidents in just four years . This tells me that Amazon’s top honcho is highly-proficient in spotting market trends.
Billion-dollar hedge fund manager Will Meade also thinks that Bezos can see when business cycles end. On Tuesday, Meade pointed out to his followers that the tech giant’s CEO spent the early days of his career in finance as a portfolio manager of a “legendary” investment company.
The CEO began selling shares between Jan. 84 and Feb. 3, according to SEC filings. The day before the sale began, Amazon announced stellar fiscal fourth-quarter earnings. The blockbuster earnings report sent the stock flying by % in after-hours trading.
The next day, Amazon climbed as high as $ 2, 90 and crossed the trillion-dollar mark in terms of market cap. During that day, over . 5 million AMZN shares traded hands. Bezos alone was responsible for 7% of Amazon’s daily trading volume. He dumped nearly 1.1 million shares of his company on Jan. .
On Feb. 3, Amazon printed a volume of 5. million shares, with Bezos accounting for . 5% of the day’s trading volume. These figures tell me that Bezos knows what he’s doing.
Mati Greenspan, founder of Quantum Economics, shares my sentiment. He also believes that Bezos ’selling indicates that the top is in. He compared Bezos to Charlie Lee of Litecoin who sold all of his LTC holdings when the crypto bull market topped out.
Bulls argue that this is not the first time Bezos dumped billions worth of Amazon stocks. According to CNBC,
It’s important to consider that Amazon’s chief executive may plan to sell more shares in the coming days. In August,
Disclaimer: The above should not be considered trading advice from CCN.com. The writer does not own any Amazon (AMZN) shares.
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