Amazon founder Jeff Bezos has completed a sale of company shares worth $5.7 billion. This move comes as the company prepares for its next financial report.
Bezos's Share Sale
The sales began around the time of Bezos's wedding in Venice at the end of June and concluded on Thursday with the unloading of 4.2 million shares for $954 million. All transactions were executed under a 10b5-1 plan he filed earlier this year. According to Bloomberg, the full plan allowed him to sell up to 25 million shares, and he sold them all. The total cashouts since 2002 exceed $50 billion.
Expectations for Amazon's Earnings
Amazon is set to report earnings on July 31. Analysts forecast $1.32 per share on $162 billion in revenue, which is up 4% and 9% respectively from last year's Q2. However, these figures still lag behind the average for the so-called Magnificent Seven, which is showing 15% growth in earnings and 12% in revenue. Amazon is under pressure to prove its AI spending is justified. Brian Recht, a portfolio manager at Janus Henderson, stated, 'Investors want to see whether Amazon can actually deliver on using it for improved profitability.'
Artificial Intelligence and Amazon's Future
Most of the AI excitement surrounds Amazon Web Services, expected to benefit from surging demand. However, Amazon is also looking to integrate AI into its retail and logistics operations. AI is being used to personalize ads, recommend products, and expedite warehouse workflows. The company is also training humanoid robots for logistics automation, which, according to analysts, could significantly enhance productivity over the next decade.
Jeff Bezos's stock sale and Amazon's forthcoming earnings highlight the company's strategic approach amid growing competition and technological advancements. The company's capabilities in artificial intelligence could prove to be a key driver of future growth.
