It won’t be long until Amazon.com Inc. founder Jeff Bezos is shouting, “I’m the king of the world!”
Bezos just leapfrogged the venerable Warren Buffett to become the world’s second-richest human, according to Thursday’s reading of the Bloomberg Billionaires Index. At $75.6 billion, Bezos is still worth $10.4 billion less than No. 1 Bill Gates, who co-founded Microsoft Corp., but the recent relative trajectory of Amazon’s stock suggests that gap could be closed sooner, rather than later.
Bezos is by far Amazon’s largest shareholder, owning 80,897,696 million shares, or 16.95% of the shares outstanding, according to data from the latest regulatory filings, valued at $70.73 billion through Wednesday. That means a $1 gain in Amazon’s stock which represents a 0.1% move at current prices, puts about $81 million into Bezos’ pocket.
All else being equal, that means Bezos would pass Gates’s current standing if Amazon’s stock climbs to $1,002.88, which is $128.56, or 15%, above Wednesday’s closing price of $874.32.
Considering Amazon’s stock has run up 17% year to date, and 46% over the past 12 months, that could happen as soon as the next several months.
In comparison, Microsoft shares have gained 5.6%, Berkshire Hathaway’s Class A shares have tacked on 3.1% and the S&P 500 index has advanced 5.8% so far this year.
SOURCE: TOMI KILGORE