SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 222.55-1.6%3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Robert Rose who wrote (83809)11/10/1999 11:48:00 AM
From: Eric Wells  Read Replies (1) of 164684
 
>>He's not selling the rest because he believes the
>>stock will be worth much more in the future.

How do you know he believes this?

Bezos may believe that his company will be successful in the future - I assume he does believe this. Yet, he may also believe that AMZN's stock is too high considering the risks of his business model.

It could be that Bezos isn't selling because he doesn't need to. I'm sure he realizes that if he were to sell a large amount of his holdings that this would send a very negative signal to investors and employees - and introduce a negative pressure on his company's ability to succeed.

We have no idea what Bezos really believes. I think we can agree that he believes in his business. But he must believe that there are some risks - yet we have no idea how he evaluates these risks. We don't know his believes on the current price of AMZN.

But regardless of what Bezos believes, if he were to adhere to a strategy of maximizing his return on his current investment in AMZN, one could certainly argue that it would be extremely foolish for him to sell a large portion of his holdings at this point in time. I think $25 million here or there is small enough to not rattle people (look at what Ebay insiders are selling). But if he were to sell, say $200 million in stock, it might cause some investors to question the stock price. But then again, in this market, it may not.

-Eric
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext