Amazon CEO Jeff Bezos told investors in a conference call outlining his company’s Q1 2020 earnings report that they may “want to take a seat.”
The advice isn’t uncommon for shareholders who know Bezos stresses the importance of long-term investing, a virtue worth remembering in these volatile times. (CNBC)
That’s because Amazon has been giving investors some version of that warning since it went public in 1997, letting them know it would prioritize long-term business advantages over short-term gains.
Amazon said Thursday it would invest its expected $4 billion second quarter profit in coronavirus-related efforts, including buying personal protective equipment for workers, stepping up cleaning in its facilities and building its own testing capability. The company said that due to the investment, it expects operating income for the quarter to be as high as $1.5 billion or as low as a loss of $1.5 billion.
The bold step is reflective of CEO Jeff Bezos’ approach since starting the business.
“We believe that a fundamental measure of our success will be the shareholder value we create over the long term,” Bezos told shareholders in a letter shortly after its IPO. “This value will be a direct result of our ability to extend and solidify our current market leadership position.”