If Jeff Bezos’s week without Amazon CEO is any indication, Bezos is in good hands with Andy Jassy as his protégé.
Amazon stock surged 5.9% to new records this week, boosting Bezos fortune by $10.6billion to an estimated $212.4billion. This far outpaces the S&P 500’s 0.4% gain and the Dow Jones Industrial Average’s 0.2% gain during holiday-shortened trade week.
Amazon’s climb was likely less due to its CEO transition than to the Department of Defense’s announcement Tuesday about canceling the $10 billion Joint Enterprise Defense Infrastructure cloud contract (JEDI Cloud) granted to Microsoft in 2019. Amazon filed a lawsuit claiming that Donald Trump used improper pressure to shut down the company. The former President has a history replete with verbal attacks against Bezos (who also owns The Washington Post).
The Pentagon, under a new White House administration, retreated. In a press statement, it stated that it is now soliciting proposals from Microsoft and Amazon. The existing JEDI contract was no longer sufficient to meet its needs. Amazon stock rose 4.7% after the news Tuesday. Bezos ex-wife MacKenzie Scott also benefited from the decisive week, boosting her net worth to $62.5 billion. Larry Ellison, Oracle’s co-founder, became $6 billion richer thanks to the reopening of the competition for the Pentagon cloud contract.
Bezos also spent his first week away from Amazon’s daily operations, mingling among billionaires and power brokers in Sun Valley. He was spotted with Lauren Sanchez. The annual retreat at the resort town attracted 25 billionaires with a combined value of $825 billion. Bezos’ leisure will intensify on July 20 as he launches Blue Origin’s first human spaceflight.
Bezos was a distant follower of Bernard Arnault (the French luxury tycoon) for a while after they spent weeks jumping frogging. However, his recent surge has brought him $23 billion more than Arnault – cementing his place as the world’s richest person.