worldwide Stock, commodity and cryptocurrency markets collapsed On Black Monday 2.0, investors are concerned about the ongoing sell-off. Against this backdrop, social media has been taking advantage of wise comments from Amazon Founder Jeff Bezos In the wake of the dot-com bubble burst in 2000, this was a source of encouragement.
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What happened: When Amazon shares crashed along with other tech stocks in 2000, Bezos sought to calm troubled shareholders with his letter to them. Excerpts from the letter sent to a Bloomberg journalist John Ehrlichman A video posted by the billionaire showed him reviewing Amazon’s achievements in fiscal 2000. “Our stock has fallen more than 80% since I wrote you last year,” he said. “Yet by almost every measure, Amazon.com Inc. is in a stronger position now than it has ever been in the past.”
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To prove his claim, he pointed out that Amazon’s customer base rose from 14 million to 20 million between 1999 and 2000, sales rose more than 68% to $2.76 billion, estimated operating loss fell by 6% and average spending per customer rose by 19%, among other things.
Bezos benefited from the wisdom of Benjamin Grahamwidely called the father of value-based investing. The Amazon founder quoted Graham as saying that the stock market is like a voting machine in the short run and a weighing machine in the long run,
“There was obviously a lot of voting that went on in the boom year of 1999, and it was much less weighted,” Bezos said.
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“We are a company that wants to be significant, and over time, we will be – in the long run, as all companies are. At the same time, we are working hard to build a heavier and heavier company,” he added.
Why is this important: On Monday, Amazon shares fell more than 4%, less than most tech giants. Bezos is not part of Amazon’s active management team now and serves as chairman, with his successor leading the e-commerce giant. Andy Jassy.
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True to Bezos’s words, Amazon has now grown into a heavier company. Second-quarter results released last week showed that Net income rose to $147.98 billion. Earnings came in at $1.26 per share. Aside from its core e-commerce business, the company has diversified its operations to include a thriving cloud computing business called AWS, giving it exposure to hot, emerging AI technology.
From a post-dot-com bubble low of 30 cents per share (adjusted price after the split) the stock has risen to $161.02, a gain of about 54,000%.
the SPDR S&P 500 ETF Trust The SPY Fund, an exchange-traded fund that tracks the S&P 500, ended Monday’s session down 2.91% at $517.38, according to Benzinga Pro Data.
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This article Global market crash prompts reflection on Jeff Bezos’ comments about dot com in 2000 after Amazon plunged 80%: “We are a company that wants to be measured, and over time we will.” Originally appeared on Benzinga.com
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