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Jeff Bezos: how to lose 7 billion USD in one day

25 October 2019

Jeff Bezos: how to lose 7 billion USD in one day

Jeff Bezos is the head and founder of the largest company Amazon, after it was provided with a report on the results in the third quarter, Bezos has lost about 7 billion USD in one day because of the falling shares.


The experts analyzed the profitability of the company by comparing reports for 2018 and 2019. The report stated that in 2019, the operating income of the company fell to 3.2 billion USD, while in 2018, the yield amounted to 3.7 billion USD. In the last quarter of the net income of the company fell to 2.1 billion USD, while in 2018, the year of the accounting period closed with profit of USD 2.9 billion.


The reason for the decline in profit was an innovation from Amazon, namely one-day shipping to Prime customers, which has led to a significant increase in costs. Analysts attributed the situation to the fact that the company invests a fair share of capital in the development of logistics infrastructure and increase level of service. Employees of the company indicated that in the previous quarter, Amazon spent on the development of the service “special delivery for Prime customers” a lot more than planned. Brian Olsavsky, who is the chief financial officer, said that if in the third quarter the costs amounted to 800 million USD, then in the fourth they reach about 1.5 billion USD.


After the Amazon report was published, the share price of the company dropped by 9%, confirming the data suggests that Bezos has lost about 6.9 billion USD. The market responded with excitement, which led to a fleeting increase in shares to 1.76 thousand USD apiece, but later the price dropped again.


Recent events may adversely affect Jeff Bezosa. If the trend is to reduce the value of the shares to continue, Bezos will no longer be the richest man in the world, his place in the Bloomberg Billionaire Index list will go the founder of Microsoft bill gates.


Recently, the head of Amazon only loses their income. Recall that in early October, Forbes reported that after the divorce with his wife as Jeff Bezos declined to 46 billion USD, while, as last year it reached 114 billion USD. Bezos's wife Mackenzie Bezos received about 9.7 million shares of Amazon, then got a list of the richest people in the world, at the moment, it is on 21st position with a fortune of USD 35.8 billion.

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