Jeff Bezos is ditching Amazon stock, but there’s a catch

Amazon (AMZN) broke its five-day slide Tuesday following Chair Jeff Bezos’s sale of company stock.

On Monday, Amazon touched an intraday low of $200.96 before closing down 0.5% at $201.70. Today, the stock is up 1.5%, but it's down nearly 5% from last week’s all-time high.

Bezos sold 16.35 million AMZN shares this month, pocketing $3.37 billion. These sales, disclosed earlier this year, were conducted under a 10b5-1 plan, allowing insiders to sell shares on a prearranged schedule.

Although not unexpected, the transaction came sooner than anticipated.

Bezos still has around 9 million shares to sell under his plan through 2024. Even then, he remains a major shareholder, with his holdings valued at over $213 billion.

Many analysts see the drop as more of a technical correction rather than a sign of bigger issues. Amazon has returned a strong 33% year-to-date, outperforming the S&P 500 and Nasdaq Composite.

The company boasts a $2.1 trillion market cap, ranking fifth among the world’s largest publicly traded companies.

Amazon stock is still a catch, analysts say

The recent dip in Amazon stock follows a sharp rally after better-than-expected company earnings.

Last quarter, Amazon posted earnings of $1.43 per share on $155.88 billion in revenue, beating expectations of $1.14 per share on $157.2 billion in sales.

Meanwhile, Amazon Web Services (AWS) continue to dominate the cloud market, generating $27.4 billion in revenue last quarter—a 19% year-over-year increase—and maintaining a 31% global market share.

Meanwhile, advertising revenue reached $14.3 billion, while retail sales improved 7% to $61.41 billion. Despite a relatively high price-to-earnings (P/E) ratio of 44, Amazon’s valuation is seen as reasonable given its strong growth trajectory.

Analysts maintain a consensus “buy” rating on AMZN stock, underscoring its continued appeal to investors.