Global equity markets, commodities, and cryptocurrencies all crashed on Black Monday 2.0, and investors are worried about the unabated sell-off. Against this backdrop, social media tapped into sagacious comments from Amazon founder Jeff Bezos in the aftermath of the 2000 dotcom bubble burst to draw some encouragement.
Don't Miss:
Amid the ongoing EV revolution, previously overlooked low-income communities now harbor a huge investment opportunity at just $500.
Here’s the AI-powered startup that turns traders into influencers achieving 12% monthly growth – invest in it at only 10 cents per share.
If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?
What Happened: When Amazon shares were annihilated along with the other tech stocks in 2000, Bezos strived to calm the agitated shareholders through his letter to them. Excerpts of the letter that Bloomberg journalist Jon Erlichman shared showed the billionaire reeling off Amazon’s achievements in fiscal year 2000. “Our shares are down more than 80% from when I wrote you last year. Nevertheless, by almost any measure, Amazon.com the company is in a stronger position now than at any time in its past,” he said.
See Also: Don’t miss out on the next Nvidia – you can invest in the future of AI for only $10.
To substantiate his claim, he noted that Amazon’s customer count increased from 14 million to 20 million between 1999 and 2000, sales climbed from over 68% to $2.76 billion, pro forma operating loss narrowed by 6% and average spend per customer rose 19%, among other things.
Bezos tapped into the wisdom of Benjamin Graham, who is widely called the father of value investing. The Amazon founder quoting Graham said the stock market is like a voting machine in the short term and a weighing machine in the long term,
“Clearly there was a lot of voting going on in the boom year of '99—and much less weighing,” Bezos said.
Trending: These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends
“We're a company that wants to be weighed, and over time, we will be—over the long term, all companies are. In the meantime, we have our heads down working to build heavier and heavier company,” he added.
Why It’s Important: On Monday, Amazon shares fell a little over 4%, less than what most of its mega-cap tech peers lost. Bezos is not part of the active management team of Amazon now and serves as chairman of the board, and the e-commerce giant is led by his successor Andy Jassy.
See Also: Will the surge continue or decline on real estate prices? People are finding out about risk-free real estate investing that lets you cash out whenever you want.
True to what Bezos said, Amazon has now grown as a heavier company. The second-quarter results released last week showed the top line growing to $147.98 billion and earnings coming in at $1.26 per share. Apart from the core e-commerce business, the company has diversified its operations to include a thriving cloud computing business called AWS, giving it exposure to the hot-and-happening artificial intelligence technology.
From the post-dotcom bubble burst bottom of a split-adjusted 30 cents per share (split-adjusted price), the stock has risen to $161.02, a gain of about 54,000%.
The SPDR S&P 500 ETF Trust (NYSE:SPY), an exchange-traded fund that tracks the S&P 500 Index, ended Monday’s session down 2.91% at $517.38, according to Benzinga Pro data.
Read Next:
A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
Want to invest in homes? $100 is enough on this platform that lets you cash out whenever you want.
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article Global Market Crash Sparks Reflection On Jeff Bezos' 2000 Dotcom Comments After Amazon's 80% Plunge: 'We're A Company That Wants To Be Weighed, And Over Time We Will Be' originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.