Bezos Offloads $5.7 Billion in Amazon (AMZN) Stock Ahead of Q2 Earnings

Jeff Bezos has completed a significant sale of Amazon (AMZN) shares, cashing out $5.7 billion since late June. The transactions were made under a 10b5-1 trading plan, allowing company insiders to sell shares on a predetermined schedule. The sale included 25 million shares, with the final 4.2 million sold for $954 million just days before the company’s second-quarter earnings report, scheduled for July 31.

AI Expenses vs. Revenue

The timing comes as Amazon stock has climbed 38% from its April low. Despite the gains, the company is facing questions from investors about whether its heavy artificial intelligence spending will begin to boost profitability. Analysts expect second-quarter earnings of $1.32 per share on $162 billion in revenue, reflecting 4% and 9% growth from last year. That pace trails other top tech names, which are averaging 15% earnings growth and 12% revenue expansion.

Amazon has committed $104 billion to capital expenditures this year, including $30 billion for new data centers in Pennsylvania and North Carolina.

_{Gross profit has climbed 117% since Q2 2020, outpacing a 98% rise in operating expenses. The widening gap highlights improving operational leverage and supports Amazon’s ability to fund large-scale initiatives like AI and infrastructure expansion without immediate pressure on margins. Source: Main Street Data.}

Bezos’ History of Share Sales

Bezos remains the company’s largest individual shareholder, still owning around 884 million shares or more than 8% of the company. His Amazon stake is the foundation of his $252.3 billion net worth, placing him third on the Bloomberg Billionaires Index.

Since 2002, Bezos has sold over $50 billion in Amazon stock. In 2024 alone, he sold 75 million shares for $13.6 billion. He also donated about $190 million in shares to nonprofits this year. His only recorded purchase was one share for $114.77 in 2022. Market reaction to the latest sales has been limited, with the stock holding steady during the selling period. Investors appear to view the move as part of Bezos’ long-running strategy to diversify his holdings rather than a shift in outlook on Amazon itself.

Is AMZN Stock a Good Buy?

On the Street, Amazon boasts a Strong Buy consensus rating. The average AMZN stock price target is $258.27, implying an 11.59% upside.

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