This week started with a real debacle for the markets with a Black Monday like we haven’t seen in many years after the Bank of Japan raised interest rates. This caused a drastic fall in the shares of major companies around the world. just like those of Apple or Amazon.
Amazon is one of the companies that we currently consider a real titan, as is the case with Apple. Very positive financial results and a stock market valuation that reassures its shareholders. But this has not always been the case. In 2000, Amazon was at a crossroads with a its stock market value fell by 80% which shook the foundations of this company.
Steve Jobs and Jeff Bezos had similar attitudes towards the crisis
The logical reaction of any CEO to this situation might be to panic, but Jeff Bezos had a completely different attitude. In order to alleviate the situation, and especially to reassure investors, he wrote a letter in which he reports on this crisis and highlighted the long-term growth potential that the company had. All this to avoid a real flight of capital.
“Ouch. It’s been a terrible year for many financial market participants and certainly for Amazon.com shareholders as well”: This is how Jeff Bezos’ letter started to appear absolute honesty about the company’s situation and calling on investors to trust a solid and consolidated company and to flee from investments with short-term returns.
Bezos also emphasized that Amazon is more than just the numbers that appeared on the stock market and that Amazon’s strong fundamentals would finally be recognized and rewarded in the future. And the reality is that this move went very well, scaling the company. Its user base continued to grow, as did customer satisfaction and sales. And this has finally reached the present day, where Amazon is a success story.
Steve Jobs Faces Stocks Worth Less Than $1
But this is something that also happened to Apple. It’s not a surprise, since the technology sector has a lot of volatility: one day it can go down and the next day it can go all the way up. We had already seen Bezos’ attitude in the shoes of Steve Jobs in 1997 while Apple was going through great economic difficulties.
During these years, Apple went through a very dark period with bad decisions while Steve Jobs left the company after being forced out by his own board of directors. These bad decisions and the debacle of the company led Jobs to come back to Apple and start fixing what others had not done so well.
At the time, Apple’s stock price was less than a dollar and Jobs was betting on to defend the solid pillars he had built in the past. To do this, he needed good capital and he turned to Microsoft with an agreement signed at two in the morning to form an alliance in exchange for Bill Gates’ company giving Apple $150 million (an investment that would now be worth $80 billion). Even if the experts saw something crazy in it.
An agreement that was presented by Jobs in an edition of MacWorld dedicated to the presentation of new products. In making this announcement The boos were audible in the auditorium.. People didn’t understand at the time why Apple was teaming up with its biggest competitor at the time.
But Jobs was very clear in his response to these boos: “My job is not to win a popularity contest right now. My job is to help the Apple team do what it takes to make this company successful again.“. Undoubtedly a heroic stance for many who made Apple was back on topcarrying this success to this day.
Here we see how two great minds ultimately had a very similar plan in mind. And the result was truly positive, as both companies are now at their peak, leaving a great legacy ahead.
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