Jim Cramer Calls Jeff Bezos' $4B Amazon Stock Sale a 'Buzzkill' Amid Record Rally

Amazon executive chairman Jeff Bezos is planning to offload 15 million shares of the company worth over $4.07 billion, according to a recent Form 144 filing with the US Securities and Exchange Commission.

The shares are part of founder stock that Bezos acquired through the company's original issuance. Financial guru Jim Cramer reacted to Bezos' stock sale, describing it as a 'buzzkill' amid a robust stock rally following a recent Q2 earnings beat.

Amazon stock surged over 22% in the past five days, but is now down 1.7% during premarket hours on Tuesday, following Bezos' disclosure and Cramer's comment.

Amazon reported a Q2 earnings beat last week of $5.75 per share on revenue of $200.61 billion. The company also expects a Q3 operating income beat of $22.5 billion to $26.5 billion, which is much higher than $17.4 billion in the same quarter last year.

Is Bezos Bankrolling Blue Origin Missions?

Bezos is known for often selling Amazon shares to make donations to nonprofits. However, reports have emerged over the years that Bezos has been personally bankrolling the rocket company using proceeds from the sale of his stake in Amazon.

'The only reason we are taking Blue Origin more seriously is because Bezos is bankrolling it,' Space Capital investor Chad Anderson had told The New York Times in December 2024. 'They have spent a ridiculous amount of money.' Anderson estimated the figure to be around $14 billion.

The Bezos-founded rocket company directly rivals Elon Musk's SpaceX. The latest stock sale by Bezos comes within a month of Blue Origin seeking funding of $10 billion at a $130 billion pre-money valuation. Note that Coatue Management was expected to lead the funding round with a $4 billion commitment, while Bezos himself plans to contribute another $2 billion.

At a $130 billion valuation, Blue Origin remains worth only a small fraction of SpaceX, which reflects more than investor enthusiasm: years of execution, reusable launch leadership, Starlink recurring revenues, and an unmatched launch record.

According to the Financial Times, Blue Origin could spend $5 billion this year as it ramps up launches. The company has reportedly spent about $28 billion since its inception. The robust capital commitments come following Blue Origin's significant setback in May when its New Glenn rocket erupted on the launch pad during an engine-fire test.

The explosion engulfed Launch Complex 36 in Cape Canaveral, Florida, requiring major repairs costing over $1 billion. However, Blue Origin CEO Dave Limp expects the company to fly again before the end of 2026.

Blue Origin's Ambitious Projects

Similar to SpaceX's orbital data centre plans, Blue Origin also intends to deploy over 51,000 satellites to create AI data centres in space under Project Sunrise. This deployment will occur alongside the TeraWave communications network, which is expected to combine 5,400 low-Earth-orbit satellites with 128 medium-Earth-orbit optical relay satellites to deliver multi-terabit connectivity.

These projects could require capital on a scale rarely seen outside hyperscale cloud providers, and could be the reason Blue Origin is raising money now rather than five years ago.

Furthermore, the company is competing beyond NASA launch contracts to focus on ownership of the infrastructure layer of the emerging space economy, which could also be the reason investors are assigning a $130 billion valuation to Blue Origin, despite operational roadblocks.