Jeff Bezos Worth Skyrockets As Amazon Stock Soars

Jeff Bezos Worth Skyrockets As Amazon Stock Soars

The coronavirus crisis has led to unprecedented demand for the services of e-commerce giant, Inc. AMZN, sending its stock to record highs and its CEO Jeff Bezos’ net worth even higher.

What Happened

Bezos, the founder of Amazon and the world’s wealthiest man, has just seen his net worth reach new heights.

Amazon stock rose 5.6% to reach a record high of $2,290 per share by Tuesday afternoon. The shares have returned 20% for the year.

This means that Bezos’ worth rose $6.3 billion, as he owns 11.2% of Amazon, according to Forbes.

Bezos’ ex-wife Mackenzie Bezos, who has a 4% stake in Amazon, became richer by $2.3 billion.

The appreciation in the price of shares means that Bezos’ worth rose $6.3 billion,  as he owns 11.2% of Amazon. Bezos’ ex-wife Mackenzie Bezos who has a 4% stake in Amazon became richer by $2.3 billion.

Amazon has grown from humble beginnings. The company went public in 1997 at $18 per share. In August last year, Amazon marked 25 years to the day it posted its first-ever job advertisement. The compensation for that job -- “meaningful equity ownership.”

Why It Matters

The driver of Amazon’s success on the bourses is its modus operandi. The company’s primary business is online retail, and the demand for Amazon’s services has increased as people are required to stay at home or asked to shelter in place.

Amazon also has a stake in cloud computing and streaming. The coronavirus has led to a rise in demand for streaming services as people try to ward off boredom, and these services further enrich Amazon.

Last month, Bezos said that the coronavirus pandemic wasn’t “business as usual.” In a letter, he revealed that the company had had to change its logistics, transportation, supply chain, purchasing, and third-party seller processes to cope with the increase in demand.

Amazon will generate $72.49 billion in first-quarter revenue and $334.14 billion for the year, higher than $72.21 billion and $334.05 billion the company made at the end of January. 

“In most verticals, Amazon has seen an ’enormous increase in demand’ as shoppers are forced to stay home, essentially creating an extended Prime Day/Black Friday type of situation,” according to Cowen analysts as cited by Marketwatch.

However, even as Amazon increases hiring to match increased demand, the way it treats its workers has come under the congressional scanner.

Bezos was recently questioned by five United States senators regarding the firing of an employee who led protests at a New York Amazon warehouse, demanding better conditions for employees at work during the outbreak.

Price Action

Amazon shares traded 0.58% lower at $2,270 in the after-hours session on Tuesday. The shares had closed the regular session 5.28% higher at $2,283.32.

Posted In: coronaviruse-commerceForbesJeff BezosNewsLegalTechMedia

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