A Year To Forget For Amazon.com, Inc. (AMZN)’s CEO Jeff Bezos
In a few days, the year 2014 will end. However, Amazon.com, Inc. (NASDAQ:AMZN) and its CEO, Jeff Bezos, would like to forget the year for the simple reason of a steep drop in stock price in 2014. It came on the back of a solid growth in the benchmark indices. Individually, Bezos lost his net worth significantly.
Share Value Drop
The main culprit was the steep loss in the value of Amazon shares resulting in the shedding of the net worth of its CEO. Bezos is having 84 million shares in the company that is struggling to make profit despite sales witnessing expansion. It translated into having an 18% stake in Amazon. Its acquiring of gaming site, Twitch, and expanding its warehouse locations are yet to start providing fruits. However, it dropped the idea of coin.
Shares of Amazon closed December 31, 2013, at $398.79. The last closing price in the current year was $309.09 thus indicating a loss of 22.5% of its value in 2014. As a result, Bezos has lost about $7.5 billion in his wealth. Strangely, the stock performance came on the back of a solid show of 15.2% uptick by Nasdaq, where its shares were listed, and S&P 500 by 13% in the same period. However, the CEO continues to enjoy a net worth of $20 billion.
It naturally made investors’ express their disappointment. Amazon’s sales were growing by getting big business while it failed to translate into profit. Already, some investors’ were running out of patience with Amazon and its CEO. It was a question of investing alone with no gains in return. They have even questioned as to what was there big in generating more sales without delivering profitability in tandem.
In comparison, Jack Ma, Alibaba Group Holding Ltd (NYSE:BABA), witnessed his net worth growing at 173% pace to $29.2 billion placing one step above Amazon CEO in the top billionaires list. Similarly, Microsoft Corporation (NASDAQ:MSFT)’s former Chairman, Bill Gates, net worth increased by $9.1 billion
Interestingly, Amazon it added ten million Prime members enabling them to enjoy two days of free shipping. However, analysts’ believe it was a costly one for the company.