Wanted to get some opinions about Amazon RSUs - Better to sell x amount cover taxes or pay taxes to keep shares?
Better to sell them all and diversify. Otherwise you're just buying their stock with your money.
I thought so too, and now I regret selling all those shares that vested at $800 that were awarded when it was $350. Sure seemed like a good idea at the time, though! I used exactly the reasoning you gave and have regretted it ever since.
Would you feel the same regret if it went down by 50% after you sold it? The “logical” thing to do is sell it because you don’t know what will happen to the stock. If you prefer to gamble, that’s ok.
Depends on your opinion of the future growth potential of the stock. Overall, you should only keep the stock if you would spend your own money to buy an equivalent number of shares. Your health care and paycheck is riding on Amazon already, IMO holding more than 10% of your net worth in any single company is a bad idea.
Get out your crystal ball and figure out what AMZN is going to do next. If you find out it's going to go up, hold, otherwise, sell!
Following..
I would sell just enough to cover taxes. I would invest in Amazon anyways just because of cloud and prime video, so I’d just keep what I am given. Only other reason to sell would be to buy a house 🏡
Prime video?
It's all about risk tolerance and your investing strategy. To minimize your risk, you should sell shares to cover taxes. To diversify your investments, sell all. If you're bullish on stock growth (and to earlier comment would buy it with your own money at that price), by all means pay the taxes with cash. It can be a big amount of upfront cashbwhereas if you bought the stock separately, you wouldn't be taxed (since an RSU vest is treated as income for tax purposes).
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