Amazon CEO Jeff Bezos loses $6 billion in after-hours trading on Thursday as Amazon’s stock dropped. Bezos has also lost his ranking as the fourth riches person in the world in response to the company’s fourth quarter earnings report, according to The Business Insider.
As of 5:00 p.m. ET, Bezos was worth $49.6 billion, barely holding on to his place as the world’s fourth richest person. By 5:30 p.m. ET, Jeff had lost another $800 million dollars, which puts him in fifth place behind Carlos Slim Helu of Mexico, who is now the fourth richest person in the world with a net worth of $49.6 billion.
Investors expected a positive report from Amazon, but the company missed analyst expectations in its fourth quarter earnings report. The company reported a profit of $1.00 per share, while analysts expected an average profit of $1.56.
As Jeff Bezos loses $6 billion, the stock fell to a low of $545.97 after hours from its closing share price of $635.55 per share. As of 5:00 p.m. ET, the company was trading at $562.80.
While Bezos’ fortune fell more than $6 billion in the first hour of after-hours trading, the billionaire’s net worth has still increased dramatically in the past year. Jeff’s net worth is up more than 40% since Forbes published its annual Billionaires List in 2015. At that time, Jeff Bezos was the 15th richest person in the world with a net worth of $34.8 billion.
Even though share prices slumped, sales rose by more than $5 billion. The revenue for the final three months of 2015 was $35.7 billion, up from just over $29 billion in 2014. The three-month time-frame includes the crucial Christmas period, always an important time for the online retailer.
But despite figures for the year that showed a 71 percent rise in revenue and 186 percent rise in profit, the results missed the expectations set by analysts and investors, and as a result share prices dropped 12 per cent in after-hours trading. Jeff Bezos remained positive however, following the results.
“Twenty years ago, I was driving the packages to the post office myself and hoping we might one day afford a forklift. This year, we pass $100 billion in annual sales and serve 300 million customers,” Bezos said, adding, “And still, measured by the dynamism we see everywhere in the marketplace and by the ever-expanding opportunities we see to invent on behalf of customers, it feels every bit like day one.”
The company also reported success in other areas - namely its own-brand hardware and Amazon Prime membership plan. Jeff Bezos said its Fire TV streaming devices remain the best-selling in the US, while Prime membership - which includes access to the Fire TV streaming service of films and television, as well as a music service and quicker delivery from Amazon Store - rose by 51% globally.
“Despite Amazon reporting its third straight quarter of profits and record sales, the company missed analyst expectations by a wide mark. It continues to expand in new areas like cloud services, streaming entertainment and hardware, but the growing number of Amazon Prime users are presenting the company with a fulfilment problem. It hasn’t been able to recover the shipping costs it’s incurring to meet its promise of free delivery to Prime customers. The challenge over the next year will be to cut shipping costs without prohibitively raising the cost of Prime membership,” Technology expert Kent German said in a statement.
As Jeff Bezos loses $6 Billion, the problem begin on the first Monday of the year when he lost $3.7 billion - sending his net worth down to a mere $56 billion - after the online retailer slipped 5.8 percent. Now it has gone down even further.