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.
🕒 Quick grocery trip
🛒 Smart shopping cart
✅ Skip checkout linesOur new Amazon Dash Cart is here. A smart shopping cart that makes your quick grocery trip even quicker, allowing you to skip the checkout line. Rolling out in California this year. https://t.co/UGF7VUXcei pic.twitter.com/PdzcbvndKo
— 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.
We’re all in on The Climate Pledge, our commitment to be net zero carbon by 2040. To learn more, visit our blog. https://t.co/nUwY2sM8B0 #ClimatePledge pic.twitter.com/IBVGc1dYRt
— 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.
-
Fitch Ratings, a leading global credit rating agency, has released a new economic outlook report predicting that the U.S....
-
With Federal Reserve Chair Jerome Powell signaling that interest rates might be cut soon, investors are contemplating how this...
-
Consumer prices in the United States increased at the slowest rate in over three years last month, raising hopes...
-
In a significant shake-up at Starbucks, Laxman Narasimhan has stepped down from his role as CEO and board member...
-
JPMorgan Chase is set to release its second-quarter earnings report before the opening bell on Friday, July 14. Investors...
-
The Federal Reserve announced today that all 31 banks participating in its annual stress test have demonstrated their ability...
-
Wednesday is poised to be a pivotal day for economic news, as investors and economists brace for a crucial...
-
AMC Entertainment Holdings Inc. successfully raised approximately $250 million through a stock sale completed on Monday, coinciding with the...
-
Bank of America has reported impressive first-quarter earnings, surpassing analysts’ estimates for both profit and revenue, driven by better-than-expected...
-
Ken Griffin, the founder and CEO of Citadel, emphasized the importance of prudence in the Federal Reserve’s strategy regarding...
-
Michael Saylor, a prominent figure in the world of cryptocurrency, has seen significant gains this week as the value...
-
The Office for National Statistics (ONS) released official figures on Wednesday, revealing that the United Kingdom posted a record...