“We are a company that wants to be weighed, and over time we will.”

Global stock markets, commodities and cryptocurrencies all collapsed on Black Monday 2.0, and investors are concerned about the continued sell-off. Against this backdrop, social media took advantage of astute commentary from Amazon founder Jeff Bezos some encouragement burst in the aftermath of the 2000 dot-com bubble.

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What happened: When Amazon’s stock was destroyed along with the other tech stocks in 2000, Bezos tried to calm the irritated shareholders with his letter to them. Excerpts from the letter from Bloomberg journalist Jon Erlichman shared showed that the billionaire was shaking Amazon’s performance in fiscal year 2000. “Our shares are down more than 80% from when I wrote to you last year. Nevertheless, by all accounts, Amazon.com is in a stronger position than ever before,” he said.

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To support his claim, he noted that between 1999 and 2000, Amazon’s number of customers increased from 14 million to 20 million, its revenue increased from more than 68% to $2.76 billion, and its pro forma operating loss increased by 6%. has decreased and that average spending per customer has increased by 19%. among other things.

Bezos tapped into the wisdom of Benjamin Graham, commonly referred to as the father of value investing. The Amazon founder quoted Graham saying the stock market is a voting machine in the short term and a weighing machine in the long term.

“It’s clear that there was a lot of voting in the boom year of ’99, and a lot less voting,” Bezos said.

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“We are a company that wants to be weighed, and in the long run we will be – in the long run, all companies are. In the meantime, we are working with our heads down as we build an increasingly tough business,” he added.

Why it’s important: On Monday, Amazon shares fell just over 4%, less than what most of its mega-cap tech peers lost. Bezos is now not part of Amazon’s active management team and serves as chairman of the board, and the e-commerce giant will be led by his successor Andy Jassy.

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True to what Bezos said, Amazon has now grown as a heavier company. This was evident from the second quarter figures published last week revenue grows to $147.98 billion and earnings came to $1.26 per share. In addition to its core e-commerce business, the company has diversified its business with a booming cloud computing company called AWS, bringing it into contact with the popular artificial intelligence technology.

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From the post-dotcom bubble, the bottom burst at a split-adjusted 30 cents per share (split-adjusted price) and 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 up 2.91% at $517.38, according to Benzinga Pro Data.

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This article Global market crash prompts reflection on Jeff Bezos’ Dotcom comments in 2000 after Amazon’s 80% drop: ‘We are a company that wants to be weighed, and over time we will be’ originally appeared on Benzinga.com

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