Amazon CEO Jeff Bezos have been riding in good fortune in 2016 becoming the second richest man in America and still maintains that honor after losing $3 billion last Thursday. He is now worth $67.5 million, good for second place behind Bill Gates, who is the country's richest.
Uproxx reports that after gaining $20 billion in the period 2015 to 2016, he had just recently displaced Warren Buffet from second place in the Forbes 400 richest list. After many months of good rolls, $3 billion in net worth was taken off his net work after Amazon stocks went down by 5% one hour after Amazon released its third quarter earnings.
Amazon earned 52 cents per share for the period ending Sept. 30 which is far from the industry estimate of 78 cents per share for the same period, as reported by Forbes. The bad news led to the downward turn of Amazon stocks by 5 percent after one hour and at closing, the price had gone down to $782.10 from the starting valuation of $818 per share.
These figures may not too large for ordinary people or small stockholders but for someone like Jeff Bezos, analysts have calculated a $3.2 billion loss in his net worth considering the number of Amazon stocks he owns. Not all billionaire can keep their net worth steady since there are times when unfavorable news brings the value of stocks to unexpected levels.
Actually, these changes in valuation do not affect much a billionaire like Jeff Bezos. Despite the big loss of $3 billion in net worth, he is still a very rich man but the story clearly shows that in today's modern business, even one single unfavorable news has a big effect on stock valuation.
The $3 billion loss in value of Jeff Bezos' net worth is just a bit higher than the $2.9 billion that Warren Buffet deducts from his net worth every year by donating that amount to his philanthropic causes. By last count, Bezos is just $2.6 billion richer than Buffet.
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