2024-07-13 09:48:41 ET
Summary
- Back in 1997, Jeff Bezos told the world AMZN wouldn’t sacrifice its long-term strategy to meet short-term targets.
- But many who bought AMZN stock ignore that and jump ship whenever AMZN doesn’t meet Wall Street targets.
- Yet all the while, the company has been and still is sticking to the Bezos vision and delivering handsomely to shareholders who take it seriously..
- Contrary to what many believe, AMZN is not simply an oddball combination of retail and cloud services.
“ When someone shows you who they are, believe them the first time ,” said poet, memoirist and activist Maya Angelou .
It’s just as well Ms. Angelou isn’t an e-commerce/cloud investment analyst.
When it comes to Amazon.com , Inc. (Nasdaq: AMZN) , her words often fall on deaf ears.
After AMZN went public in 1997, founder/ first C.E.O. Jeff Bezos’ laid it all out in his first Shareholders’ Letter .
In the first sub-heading, Bezos asserted “It’s All About the Long Term.”
Many companies also say that. But several Bezos bullet points really drove it home:
We will continue to make investment decisions in light of long-term market leadership considerations rather than short-term profitability considerations or short-term Wall Street reactions ....
When forced to choose between optimizing the appearance of our GAAP accounting and maximizing the present value of future cash flows, we’ll take the cash flows....
We will balance our focus on growth with emphasis on long-term profitability and capital management. At this stage, we choose to prioritize growth because we believe that scale is central to achieving the potential of our business model .
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The More One Understands What Amazon Truly Is About, The Better It Looks