Amazon founder and Chief Executive Officer Jeff Bezos lost the title of the richest man in the world after Amazon Inc reported that revenue and profit for the Q3 quarter could be below expectations over fierce competition and rising costs from its plan to speed up delivery times globally. After the announcement, the shares of the online retail behemoth dipped 7 per cent during initial hours of trading on Thursday, taking Bezos' fortune down to $103.9 billion.
Microsoft co-founder Bill Gates is back on number 1 spot, with a net worth of $105.7 billion, reported The Forbes, adding that Bezos had ended Gates' 24-year-reign as the richest man in 2018 when his net worth surged to $160 billion. Earlier in July, Gates was pushed to the Number 3 rank by Bernard Arnault, Chairman of LVMH Moet Hennessy Louis Vuitton SE, aka LVMH, as per the Bloomberg Billionaires Index.
Apart from not-so-encouraging quarterly earnings forecast, another factor that led to a drop in Bezos' net worth is the transfer of his 4 per cent stake to former wife Mackenzie Bezos. Mackenzie is ranked 22nd with a net worth of $40.3 billion, according to the Bloomberg Billionaires Index. Bezos' divorce from his wife of 25 years was finalised by a Seattle-area judge in July, paving the way for her to receive $38.3 billion worth of Amazon stock.
Amazon said on Thursday the revenue growth for the company's lucrative cloud computing business also slowed down in the third quarter, missing analysts' estimates. The company, however, beat expectations on overall third-quarter revenue, posting sales up 24% to $70 billion.
Amazon also said it expected holiday-quarter operating income to be between $1.2 billion and $2.9 billion, while analysts were expecting $4.19 billion, according to research firm FactSet.
Manoj Sharma with Reuters input