Not broke, but Jeff Bezos just took a billion dollar belly flop. In one day, Jeff Bezos, CEO of Amazon, lost a staggering $6 billion dollars after stock dropped in response to the largest Internet-based retailer’s fourth quarter earnings report. Bezos lost his ranking as our world’s fourth richest person. Before anyone starts a crowdfunding campaign for the 52-year-old founder, he is still ranked number 5 with a net worth of around $49 billion.
Reports Forbes on Jan. 28: “Investors expected a positive report from Amazon, but the company missed analyst expectations in its fourth quarter earnings report. Amazon reported a profit of $1.00 per share, while analysts expected an average profit of $1.56. In response to the news, the stock fell to a low of $545.97 after hours from its closing share price of $635.55 per share. As of 5:00 p.m. ET, Amazon was trading at $562.80.”
Bezos, who owns at least 84 million shares, took a massive hit when investors learned of the subpar earnings. The release of the figures prompted a collapse in the shares, taking a $6 billion net chunk out of Bezos and his bankbook. In August of last year, Bezos also lost close to $6 billion when Amazon stock tumbled $72 a share overnight.
Overall though, Jeff Bezos is doing quite well. His net net worth is up more than 40 percent since last year’s Forbes billionaires list. He’s climbed from the 15th richest person in the world to fifth, adding nearly $15 billion to his name in under a year.
Amazon posted lower that forecasted numbers through the 2015 holiday season, while expenses pushed higher than analysts anticipated.
“They were well below what people were expecting on earnings because they spent more than what people were expecting,” Kerry Rice, an analyst at Needham & Co, said. “Amazon reached this new level of profitability in 2015 that we hadn’t seen previously. If they don’t keep that trend going in the right direction, the stock goes down.”
According to Business Insider, it’s not all “doom and gloom” for the multinational retailer. Amazon’s cloud-computing business took off, and Amazon Prime subscribers have increased dramatically over the last year.
The site reports: “After a flare out with the Fire Phone and moderate success with the Fire tablet, Amazon finally has a hardware hit with its voice assistant, Echo. And while a majority of the products on Amazon are available elsewhere, products sold exclusively through Amazon are doing very well.”