Posted in: Business News
Published:
March 17, 2020 3:54 PM UTC

Amid Pandemic, Jeff Bezos Continues to Prove Why He’s the World’s Richest Man

Amazon is hiring more workers in the midst of a pandemic. Jeff Bezos sold the top and is ready to buy the bottom.

  • Amazon is one of the only companies that’s hiring more workers in the midst of a global pandemic.
  • The tech giant has built a strong balance sheet over time.
  • Jeff Bezos sold the top and is ready to buy the bottom.

While other big companies are begging to be bailed out by the government, Amazon and Jeff Bezos are aggressively expanding.

The online retailer has built a strong balance sheet over the years. The company’s cash on hand enables it to exponentially grow its workforce in the midst of a doomsday scenario.

Amazon Hiring More Workers to Keep Up With Skyrocketing Demand

The e-commerce giant is looking to hire 100,000 new workers across the United States. The massive call for employment comes as people spend more time shopping online due to coronavirus.

Amazon aggressively expanding its workforce. | Source: Twitter

The tech titan is also temporarily giving a $2 an hour bump to hourly employees in the U.S. and Canada until Apr. 30.

Beneficiaries of the raise are employees earning $15 per hour, including those working at Whole Foods grocery stores, delivery centers and warehouses. Their counterparts in the United Kingdom and other European countries will receive a $2.45 and $2.24 hourly raise, respectively.

Amazon is in a position to expand its workforce and hand out salary bumps because of its billions of cash on hand.

Amazon Has a Boatload of Cash

Over the years, Amazon has strategically built its strong balance sheet. At the end of 2016, the tech company had nearly $26 billion cash on hand. Three years later, that number more than doubled to $55 billion.

Amazon can easily deploy capital to fund new projects. Figures above are in thousands. | Source: Yahoo!

As brick-and-mortar stores succumb to the impact of coronavirus, Amazon is more than ready to take on new business. They are also ready to hire workers who lost their jobs amid the pandemic .

It’s as if Jeff Bezos was preparing for this moment. His expanded workforce will help prop up the grinding U.S. economy while dealing a knockout blow to his competitors.

Bezos Sold Billions of Amazon Stock Before the Selloff

In February, Bezos dumped over $4 billion worth of Amazon shares just as the stock was trading close to all-time highs. Early in his career, Bezos used to work as a portfolio manager at a global investment company. That experience may have helped him to know how to time market tops.

It turns out that he got out days before the market tanked.

Bezos sold shares just before the dump. | Source: TradingView

The chief executive is sitting on $4 billion in cold hard cash in his personal account. He can redeploy that capital when the coronavirus threat is over. After at the top, Bezos has the means to buy Amazon shares at rock bottom prices.

Bezos is growing his company while his competitors are shuttering due to coronavirus. He sold Amazon shares at the top, giving him billions to potentially buy at the bottom. It’s not surprising to see why he’s the world’s richest man.

The above should not be considered trading advice from CCN.com. The writer does not own Amazon (AMZN) shares.

This article was edited by Sam Bourgi.

Kiril Nikolaev @kirilnikk123

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has a bachelor's degree with a specialty in finance and lives in Canada. Kiril’s current focus is on cryptocurrencies. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. He owns Bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading. kirilnikk123@gmail.com

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