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Jeff Bezos Loses ‘the World’s Richest Man’ Title to Bill Gates as Amazon Stock Falls

Amazon Inc. stock is getting battered following a downbeat earnings report.

The company announced on Thursday its third-quarter net income fell to $2.1 billion on earnings per share of $4.23, which represents a pretty big fall of around 26% year over year and worse than analysts had expected.

During the quarter that ended September 30, the company’s revenue rose to $70 billion, up 24% YoY but it also wasn’t enough to meet the previous estimates. At the same time, Amazon reported its cloud business, Amazon Web Services or AWS, earned $9 billion in sales, tight slightly worse than previously projected.

Chief Executive Jeff Bezos commented little on the results, saying that the company has been working hard on the upcoming holiday season for Prime customers.

In Thursday’s after-hours trading, the stock dropped around 10%, which certainly made Amazon one of the biggest losers of this quarter.

Be it as it may, with Amazon falling, that means Microsoft’s is continuing to have “the best days of its life”.

JUST IN: Amazon CEO Jeff Bezos is about to lose the title of world's richest person to Bill Gates after https://t.co/9BSNb8oIOK stock tumbled in late trading pic.twitter.com/EqdBYKGZYH

— Bloomberg TicToc (@tictoc) October 24, 2019

Last month, it became the world’s most valuable company, putting the long-time ruler Apple in second place.

With that in mind, it’s logically to presume that Microsoft’s famous founder and humanitarian, Bill Gates, got back at the top of the rich list.

Just for reminder, at the end of 2018, Bezos was enjoying the status of the world’s wealthiest person with the fortune estimated at more than $126 billion. That year, his wealth became even bigger and grew by a total of $27 billion that made him pretty much in front of Gates, who was then at “lousy” $94 billion.

However, Gates wasn’t worried knowing that it really doesn’t matter. He continued with developing and growing of his company and this year he’s grown by another $16 billion already. His success is partially the result of Microsoft’s rising fortunes but also Gates’ investments in a “thoroughly investigated” stock portfolio.

At the same time, Bezos had some troubles in his personal life. As the old joke once said: only the woman can make a millionaire of a man (assuming he was a billionaire previously), Bezos took a big hit with divorcing his wife MacKenzie Bezos. Even though he didn’t become a millionaire, the divorce settlement cost him $38 billion (making a woman billionaire for that matter).

Let’s just mention that, because of Amazon’s stock slump MacKenzie also lost around $5 billion (never work with your ex. I’m telling you).

Amazon’s key web services division saw a decrease in revenues of around $200 million. The company’s physical stores, such as Whole Foods, decreased its sales volume year-over-year that shows that groceries maybe wasn’t the smartest move to make if you’re a digital-first retailer.

However, that isn’t all. From the company, they said that Q4 revenues might be several billion dollars short of expectations as well.

Earlier this year, Piper Jaffray analyst Michael Olson explained the ways of how Amazon stock could reach $3,000 over the next two-to-three years. The stock was trading for $1,831 per share then and now, with the price closer to $1,700, it would mean that the rise should be around 80 percent.

At the time of writing the stock  was  falling at premarket trading by 5.21% to $1.688

Jeff Bezos Loses ‘the World’s Richest Man’ Title to Bill Gates as Amazon Stock Falls

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