The dismal Q3 results from Amazon, resulted in founder Jeff Bezos slipping for a brief period from his spot as the world’s richest person. Microsoft co-founder Bill Gates, whose net worth is $105.7 billion, was placed at the top spot in that period.
As Amazon reported third quarter earnings per share of $4.23 versus consensus estimates for $4.59, its shares fell by 9 percent in after-hours trading. Bezos’ fortune was knocked down to $103.9 billion. Though shares of Amazon fell on Friday, the drop was around 1 percent and that put Bezos’ net worth at $109.9 billion, placing him back at the number one spot.
Bill Gates had been the richest man for 24 years before Bezos took the crown from him in 2018. At present Gates is just $4.1 billion behind Bezos as the number two richest.
With Amazon continuing to invest heavily in infrastructure to its support one-day shipping program, Bezos might lose his position again in the coming days. Recently, Amazon’s Chief Financial Officer Brian Olsavsky said that the cost of one-day delivery program will nearly double to $1.5 billion during the holiday season. It is also investing heavily on the growing cloud business and reinforcing its advertising sales force.
Amazon gave fourth-quarter revenue guidance in the range of $80 billion and $86.5 billion which is much below the expected estimate of $87.4 billion. The company’s net income also dropped to $2.1 billion, down 26 percent from the figure of $2.9 billion, a year ago.
Another factor resulting in the dip in Bezos’s wealth is the transfer of 4 percent of his Amazon shares to his wife of 25 years, Mackenzie Bezos, as a part of the divorce settlement. MacKenzie’s 19.7 million shares are worth around $36.8 billion, making her the third richest woman in the world.
With the divorce announced back in January, Bezos is currently dating Lauren Sanchez and the couple has made multiple public appearances together.
Bezos was first featured in the The Forbes 400 list of richest Americans in 1998, one year after Amazon went public, with a net worth of $1.6 billion. At present he has around 12 percent stakes in Amazon.
Unlike Bezos, Bill Gates does not have to depend so heavily on the performance of Microsoft. Since stepping down as the chairman of Microsoft in 2014 and he has diversified his assets over the years. He presently owns just around 1 percent of Microsoft shares and is still a member of the board.
Gates is also the co-chairman of the Bill & Melinda Gates Foundation, the largest private charitable foundation in the world.