Amazon Officials Continue To Sell Despite Improved Warehouses
Although Amazon.com, Inc. (NASDAQ:AMZN), the largest internet retailer in the world, recently announced that it had injected huge investments into its distribution network to prepare for the holiday season, company insiders continue to sell stock.
The selling continues even as the company's shares rise, as investors saw the public announcement as a step forward for the company. According to Bloomberg, chief executive officer Jeff Bezos has opened six fulfillment centers across the country in 2012, and is hoping to open another 12 this year to prepare for the intense holiday season.
The company has also ramped up its efforts to improve its technology, such as its Kindle tablet.
"They’ve got to continue to invest, and that forgoes short-term profits for long-term gains," said Kerry Rice, a San Francisco-based analyst at Needham & Co.
The company's latest quarterly report showed net income fell 96 percent to $7 million, the largest drop for Amazon since 2002.
Now, it seems Amazon insiders aren't confident in the stock, as they have sold $8.08 million in shares in the last three months.
Do you think these officials are performing insider trades on privileged information?
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