Washington Post owner and Amazon.com founder Jeffrey P. Bezos became the richest person in the world and then lost his spot to Microsoft founder, Bill Gates within a few hours.
Jeff Bezos claimed the top spot as Amazon.com shares surged Thursday. The company’s shares were experiencing tremendous growth for the past year. They have reached $1,000 by Thursday noon. This development propelled Bezos to $90.6 billion and put him ahead of Gates whose total wealth was estimated to be $90.1 billion. By midday, Amazon share gave up most of their gain and so, Gates reclaimed his crown as wealthiest man in the world.
Amazon reported a profit of $197 million or close to 40 cents a share. This is a 3% loss to their expectations. Revenue however continues to soar. Consumer equity strategist R.J. Hottovy says that this can be as a result of technology spending and more fulfilment centers. Technology such as Echo and Amazon Web Services are when a lot of spending takes place, he argues.
Amazon’s market cap recently broke the $500 billion mark and joined other elites such as Microsoft, Alphabet and Apple. The “Everything Store”, as it is referred as, has built upon its retail empire and made its presence felt more into apparel and groceries. Its cloud computing unit, Amazon Web Services, also contributes a major chunk of its profits, while its Prime membership program is another large contributor.
Although Jeff Bezos lost to Bill Gates at the end of the day, the truth is Amazon is growing at a steady pace and may very well be at the top soon.