Today's Fact

Amazon & the dot-com bubble
Amazon

Source: Vox&The New York Times
Published: April 2017 & February 2000

Amazon & the dot-com bubble

Amazon was nearly a casualty of the dot-com bubble burst in the early 2000s. On December 6, 1999 Amazon’s stock price was $106.69. By April 2, 2001 the price dropped 92% to $8.37 per share.

Fortunately, Amazon had Joy Covey as the company’s first CFO. In January 1999 Joy led a $1.25 billion convertible bond offering—more than twice the $500 million originally planned. Almost by sheer luck, the company closed the deal selling bonds a month before the market crash of 2000. The funds were used to invest aggressively in areas that allowed Amazon to cut costs.

Editor’s Note: Joy was tragically struck and killed by a delivery van while bicycling in 2013. In Amazon’s 2014 Letter to Shareholders, Jeff Bezos described Joy as “substance over optics. She was a long-term thinker. She had a deep keel. Joy was bold.”

Last Week's Facts

Five Dysfunctions of a Team
Leadership

Five Dysfunctions of a Team

The founding of AWS
Amazon

The founding of AWS

Fiscal year (FY)
Finance

Fiscal year (FY)

We’ll take the cash flows
Leadership

We’ll take the cash flows

Most Popular Facts

View the Top 10 Facts