Jeff Bezos is predicted to achieve trillionaire status
The founder and owner of the e-commerce retail giant you might have heard of called Amazon, Jeff Bezos, is one of the richest billionaires in the world but he just might make history as the world’s first trillionaire.
As of June, Bezo’s net worth was approximately $158.8 billion which is more than the gross of domestic products of countries including Denmark, Iceland, and Cyprus combined value of $121.5 billion. The Amazon empire started when Bezos was 30 years old living in New York after graduating from Princeton with a degree in electrical engineering and computer sciences.
When Bezos came up with the idea for Amazon, he was working for a financing firm in New York when he noticed that internet usage was increasing every year as this was during the time of the “.com boom.” Bezos’ original vision was to create an online bookstore that was easier to access for college students and avid readers.
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— Amazon (@amazon) July 15, 2020
Eventually, Bezos realized the potential of expanding the e-commerce business to sell more than books and started to form into the Amazon we’re familiar with today. Amazon was one of the first e-commerce companies to start selling everything and anything including items that were less common to buy online at the time including furniture, groceries, and even coffins.
As access to the internet started to increase, business for Amazon boomed and Bezos seized the opportunity to re-invest back into the e-commerce company by acquiring more businesses. Amazon owns companies you may have heard of including IMDB.com, twitch, Zappos.com, Whole Foods, Good Reads app, Audible, Ring security doorbells, appeal brands, and dog food company.
Amazon is also taking advantage of its over-the-top technology (OTT) streaming platform, Prime Video, that features original productions from its namesake production studio, Amazon Studios. Amazon Studios also snagged 15 Emmys at the last awards show.
Online commerce researching firm, E-Marketer, estimated in 2019 Amazon would make up to 38 percent of the total e-commerce in the US. Amazon is also making money when customers aren’t buying anything because Amazon serves as the largest cloud server provider in the world.
Having the largest cloud server in the world can generate revenue even when customers aren’t buying anything online, customers are likely on a website that pays Amazon that hosts the content. In 2019, 12 percent of Amazon’s revenue was generated from consolidated net sales for cloud server use.
In 2019, Amazon experienced a record success generating an annual revenue of $280 billion in sales with $11.5 billion in profit. Bezos makes an annual salary as CEO of Amazon for approximately $81,000 and receives $1.5 million from Amazon for his personal security team.
— Amazon (@amazon) June 26, 2020
A majority of Bezos comes from his 11.1 percent share of the Amazon company that is valued at $1.32 trillion and Bezos’ stake is worth $146.5 billion. This means that Bezos worth is tied to the value of the Amazon stock. For Bezos to touch any of this money, he must sell some of his stock.
On January 30, Amazon published its 2019 Q4 reports that defeated Wall Street’s expectation for the company and this news instantly increased Bezos’ net value. Within the span of 15 minutes after Amazon released the Q4 report, the Amazon stock price increased 12 percent and instantly increased Bezos’ wealth to $13.2 billion.
Following the announcement, Bezos sold $4.1 billion worth of his Amazon shares over the course of 11 days. Bezos also banks on his share in other businesses including The Washington Post that he acquired in 2013 for $250 million.
Bezos also owns the aerospace company Blue Origin that is working towards making space tourism possible. Owning Blue Origin stems from a childhood dream of Bezos with a curiosity for space exploration.
Between 2017 and 2018, Bezos’ value increased by $78.5 billion and that amounts to Bezos making $215 million per day. Financial analysts predict that if the revenue stream is constant for Bezos, he should achieve trillionaire status within 6 years.
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