Amazon earnings sent the stock down around 3 percent and brought CEO Jeff Bezos back to reality as the, once again, second-richest human in.
On Thursday, he surpassed Bill Gates 61-year-old co-founder of Microsoft Corp, and gained the top position as the world’s richest man.
Bezos quickly slipped to second best when Amazon reported its second quarter earnings showing a profit of $197 million on strong sales of $38 billion.
The dip in profit is a 77 per cent drop from $857 million this time last year, and it’s mainly due to Amazon’s aggressive investments in its own business.
Jeff Bezos (arriving to the Allen & Company Sun Valley Conference on July 13), the owner of online retail giant Amazon .com, briefly held the top spot as the world’s richest person earlier on Thursday, before slipping to second place behind Bill Gates by the end of the day
That means Bezos surpassed Gates (pictured in April), 61, who is the co-founder of Microsoft Corp. Gates has held the top spot since May 2013
On Thrusday, around 9.30am, shares of Amazon.com jumped 1.8 per cent to $1,071.31 in New York, pushing Bezos’ personal wealth to over $91 billion.
Bloomberg noted that if shares of Amazon.com maintained to the end of trading at 4.00pm, Bezos, 53, would surpass Gates on the Bloomberg Billionaires Index.
But only for a shorter period of time he did.
On Thursday, at the closing of the market, Bezos slipped down to second place with $88.5 billion, but stronger earnings would have brought him back to the top by Friday, according The Verge.
Amazon was projected to post a 22 per cent jump in its quarterly revenue, rising to an estimated $37.2 billion based on the average assessment of 34 analysts surveyed by Bloomberg, with earnings per share of $1.42.
Amazon’s diverse portfolio, which includes apparel and groceries, is helping boost its market projections, but investors are keeping an eye out for an increase in the company’s subscription-based services.
The internet retailer sells a $99 -a-year Amazon Prime service, which offers delivery discounts and video and music streaming.
Michael Pachter, a Wedbush Securities Inc analyst, told Bloomberg that ‘Anyone who joins Prime… shops in retail stores 10 per cent less, and that number will keep accelerating as Amazon adds more inventory.’
‘Amazon Prime is the reason why so much physical retail is going away,’ Pachter added, referring to traditional brick-and-mortar businesses.
Amazon jumped 1.8 percent to $1,071.31 per share when markets opened Thursday morning
But Bezos quickly slipped to second best when Amazon reported its second quarter earnings showing a profit of $197 million on strong sales of $38 billion. The dip in profit is a 77 per cent drop from $857 million this time last year
Bezos started Amazon.com in Seattle, Washington in 1994 and has transformed consumer shopping in the internet age (pictured is Bezos’ Washington, DC home)
And it’s Amazon’s model of shifting the buying of good and services from the outside world to inside the home that is leading the company’s success.
Amazon Web Service, cloud-computing division, is also contributing to the overall health of the company, which is seeing profits and accounts for 10 per cent of the company’s overall revenue.
According to Bloomberg, Bezos owns 17 per cent of Amazon, which has seen a 40 per cent increase in revenues this year.
The increase has led to an additional $24.5 billion for his personal net worth, surging him to the top of the billionaires list from his starting position of fourth where he began this year.
Inditex SA founder, Amancio Ortega now ranks third with $82.7 billion, and Berkshire Hathaway Inc’s Warren Buffet sits at the No 4 with $74.5 billion.
Bezos started Amazon.com in Seattle, Washington on July 5, 1994.
Inditex SA founder, Amancio Ortega now ranks third with $82.7 billion, and Berkshire Hathaway Inc.’s Warren Buffet sits at the No 4 with $74.5 billion (pictured is Gates’ home)
Bezos owns 17 per cent of Amazon, which has seen 40 per cent increase in revenue this year (pictured is Bezos’ Seattle, Washington home)