Source:Brokerage China.Original title: "Bearish Assault! Major 15 Trillion Giant Sends Out Big News!"
Author: Chen Ming.
Looking at the high stock price The founder can't resist taking profits again!$Amazon (AMZN.US)$Please use your Futubull account to access the feature.
The latest disclosed documents show that Amazon founder Bezos will sell an additional 25 million shares of Amazon stock worth $5 billion (about RMB 36.3 billion). The timing of this shareholding reduction plan was after the local time on Tuesday, when the Amazon stock price hit a historical high.
On Wednesday, Amazon's stock price fell more than 1% against the market background of the Nasdaq refreshing a new historical high. In February of this year, Bezos sold 50 million shares of Amazon stock worth $8.521 billion. If the above 25 million share sale plan is completed, Bezos' cash-out amount this year will reach $13.521 billion, equivalent to about RMB 98.3 billion.
After the latest sales plan is completed, Bezos will still hold 0.913 billion shares of Amazon stock, accounting for 8.77% of the company's issued shares. Bezos is 60 years old this year. According to Forbes' real-time rich list, his real-time net worth is about $214.3 billion, ranking second in the world, second only to$Tesla (TSLA.US)$CEO Musk, whose net worth reached $248.7 billion.
It is worth noting that the founders of technology companies who took profits at high levels, including the CEO of the AI chip giant$NVIDIA (NVDA.US)$Huang Renxun from NVIDIA. The latest documents show that Huang Renxun sold a total of 1.56 million shares of NVIDIA stock, cashing out about $0.198 billion between June 13 and July 2.
Bezos' huge cash out
On July 3, the Nasdaq rose 0.88% to 18188 points,$S&P 500 Index (.SPX.US)$up 0.51% to 5537 points, and the two major indexes continued to hit historical highs. Since 2023, the US stock market has soared, with the Nasdaq rising more than 73% and the S&P 500 index rising more than 44% during this period.
In 2023, Amazon's stock price rose more than 80%. Since 2024, the company's stock price has risen by another 30%. The latest market value is $2056.2 billion, equivalent to about RMB 14.95 trillion. The rise in the company's stock price is mainly due to market expectations that Amazon's cloud business will benefit from the development of generative AI technology.
On Tuesday, Amazon's stock price hit a historical high of $200.43, and its market value reached $2.08 trillion, equivalent to about RMB 15 trillion. After the market closed that day, Amazon's regulatory filings submitted to the US Securities and Exchange Commission (SEC) showed that the company's founder, Bezos, planned to sell nearly $5 billion worth of Amazon shares.
According to the documents, Bezos will sell an additional 25 million shares of Amazon stock, worth $5 billion based on Tuesday's closing price. It is worth noting that in February of this year, Bezos sold 50 million shares of Amazon stock in nine trading days, cashing out about $8.521 billion. This is also his first time selling company stock since 2021.
If the latest 25 million shares stock sale is completed, the total amount of Bezos' stock sale this year will reach $13.521 billion. After the share sale is completed, Bezos will still hold 0.913 billion shares of Amazon stock, accounting for 8.77% of the company's issued shares. However, the aforementioned sales plan has suppressed the company's stock price. On Wednesday, Amazon closed down 1.21% at $197.59.
The market speculates that Bezos' decision to sell stocks may be related to the relocation plan he announced in November last year. He announced in November last year that he would move from Seattle to Miami to live closer to his parents and closer to his space exploration company Blue Origin. In addition, Washington state will begin levying a 7% capital gains tax in 2022, while Florida does not have this requirement. This means that Bezos' move to Miami may save him hundreds of millions of dollars in taxes.
Huang Renxun continued to reduce holdings
Huang Renxun, the founder of the AI chip leader NVIDIA, has also been selling his stock continuously lately.
The latest regulatory filings submitted by NVIDIA showed that Huang Renxun sold a total of 1.56 million shares of NVIDIA stock worth about $0.198 billion between June 13 and July 2.
According to the documents, this series of shareholding trading was executed based on the 10b5-1 Rule Trading Plan adopted in March. At the end of March this year, Nvidia released a detailed quarterly financial report, mentioning that Huang Renxun set up a 10b5-1 stock selling plan on March 14, 2021, which will sell up to 0.6 million shares of Nvidia stocks before the end of March 2025, with a total value of more than 0.7 billion dollars. However, Nvidia had not yet split when setting up the selling plan. On June 10, Nvidia conducted a 1-for-10 stock split, which also means that his cash-out behavior starting from June 13 may continue for a period of time.
However, Huang Renxun is not the only member of the management team who has reduced holdings in Nvidia. In the first half of this year, directors and executives of the company reduced holdings of more than 0.7 billion dollars.
Nvidia is dominant in the high-end accelerator market. After the launch of Chat GPT, a generative artificial intelligence application, the demand for Nvidia chips skyrocketed, driving the company's stock price to frequently reach new highs. On June 18, Nvidia briefly surpassed the United Kingdom, ranking first in the world in market cap. At that time, the company's market cap reached 3.34 trillion dollars. The company's stock price subsequently experienced a high-level correction, but it has picked up recently. On Wednesday, Nvidia's stock price rose by 4.57% to 128.28 dollars, with a market cap of 3155.7 billion dollars. Since the beginning of this year, Nvidia's total increase has reached 159%. Huang Renxun's wealth has also grown rapidly. Currently, on the Forbes Real-Time Billionaire List, Huang Renxun ranks 12th globally with a wealth of 112.3 billion dollars.$Microsoft (MSFT.US)$On June 26, local time, Nvidia held its annual shareholder meeting. At the meeting, shareholders approved a new executive compensation plan, and Huang Renxun, the CEO of Nvidia, will receive a compensation of approximately 34.1679 million dollars in the 2024 fiscal year, which is 60% higher than the 21.3569 million dollars in the 2023 fiscal year. In the plan, 26.6764 million dollars comes from stock awards.
At the shareholders' meeting, Huang Renxun pointed out that Nvidia has changed from being game-centered in the past to being data center-centered, and the company also hopes to develop new AI markets, such as industrial robots, and plans to cooperate with every computer manufacturer and cloud provider. He said, “The next wave of AI will automate heavy industry worth 50 trillion dollars.”
Huang Renxun stated that he is very bullish on the Blackwell platform released by the company in March, and Nvidia's AI chips provide the 'lowest total cost': although other chips may be cheaper, considering their performance and operating costs, Nvidia's chips are more economical.
Recently, however, Nvidia has encountered new troubles. According to a report from Reuters, the French anti-monopoly regulator plans to accuse Nvidia of anti-competitive practices, which will make France the world's first country to take anti-trust action against the AI chip leader Nvidia. According to the regulations, companies that violate France's anti-monopoly regulations may face fines equivalent to 10% of their global annual revenue. Currently, both the French regulatory agency and Nvidia have refused to comment on this matter.
Last Friday, the French regulatory agency released a report on generative AI competition, mentioning the risk of chip suppliers abusing market dominance. The report pointed out the industry's reliance on Nvidia's CUDA chip programming software and expressed concern because it is the only system fully compatible with GPUs required for accelerated computing. The report also mentioned that Nvidia has recently invested in AI cloud service providers such as Core Weave, which has made the regulatory agency uneasy.
It's not just France. In a document in February, Nvidia stated that officials in the United States, the European Union, and the United Kingdom are also reviewing its business. Nvidia said, "Due to our position in the artificial intelligence-related market, global regulatory agencies have increased their interest in our business."
Editor/Emily