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Why Jeff Bezos’ Divorce Could be Bullish for Amazon Shares




  jeff bezos divorzio amazon

The news of the head of Amazon Jeff Bezos and his wife MacKenzie Bezos have raised questions about how the split could influence the actions of the most precious society in the world.

While there were questions, there was no panic. Investors are in wait-and-see mode. The news, which arrived on Wednesday through a tweet by Jeff Bezos, has barely shifted the price of Amazon shares. He closed on Friday at $ 1

,640.56.

At the risk of Jeff Bezos and Wife MacKenzie?

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Amazon investors were not shocked by the news that the company's founder would split the world's biggest fortune with his future ex-wife.

The tech bellwether market capitalization is around $ 784 billion. It has about 477 million shares outstanding. Jeff Bezos owns almost 79 million of those shares. Those shares, as well as their other assets, put their equity at about $ 137 billion.

According to reports, he and his 25-year-old wife have no prenuptial agreement. The way in which their assets are divided depends on the state in which they are applying for a divorce.

If it is Washington, where they live, their assets can not necessarily be divided 50-50. The law of the state provides that everything a couple builds and matures during marriage is owned by the community, as Business Insider noted in his report. He added that the Washington courts try to divide assets (and debts) fairly and equitably.

There is also the possibility that the couple has drawn up a post -national agreement to avoid negatively affecting Amazon's shares.

Stuart Slotnick, president of the marriage department of the law firm Buchanan Ingersoll & Rooney, issued a statement on the matter, saying that there is no reason why there should be a dispute over assets or money "because there is more than enough to be evenly distributed without either side seeing a change in their lives. "

Jeff Bezos will focus on controlling his company and will likely choose to maintain stock and voting rights in Amazon shares over other assets. . There is unlikely to be any risk to the company.

Why Amazon investors could benefit from Bezos divorce

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If the couple has to sell Amazon shares as part of the divorce, those shares will become part of Amazon's float, according to Zero Hedge. As a result, Amazon's weight in indices such as the S & P 500 could increase.

Indexed fund managers therefore had to buy more AMZN shares to take account of the change. The indices generally use a company's available float, rather than the number of outstanding shares, to determine the weighting.

Amazon is considered one of the most liquid securities traded in the United States. Therefore, it is unlikely that Jeff Bezos, which sells shares, would have a significant impact on Amazon's share price, as the publication points out. He added that it may not be the case for other securities if index managers liquidated other holdings to buy Amazon.

Quoted in the report, David Dziekanski, a portfolio manager of Toroso Investments, said that index managers may need to sell "a little". of everything else "to buy Amazon.

He concluded:

Stock markets will absorb all additional Amazon shares without much price impact.

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