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Bezos points to fundamentals vs stock prices during Amazon's dot-com crash
Amazon shares slid from about $113 at their peak to near $6 during the dot-com crash, highlighting how business metrics can diverge from market pricing.
Yahoo Finance relays a discussion in which Jeff Bezos argues that a company’s stock price does not always track the underlying business, drawing on lessons from Amazon’s early period.
In the dot-com era, Yahoo Finance notes that after Amazon went public in 1997, the 2000 dot-com crash battered the stock, with shares falling from a peak around $113 to a low near $6.
The outlet says Bezos emphasized that customer numbers and gross profits were improving month by month even as the stock price fell, and that losses as a percentage of sales declined over the same period.
Yahoo Finance also highlights Bezos’ broader point that in bubbles, fundamentals can become disconnected from the market’s price action, and that the stock price can be an output with limited direct control.