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There's significantly more information in 2018 or even 2008 to indicate Amazon was worth that valuation. A companies potential has to be adjusted by risk if yo
by slededit 8y ago
There's significantly more information in 2018 or even 2008 to indicate Amazon was worth that valuation. A companies potential has to be adjusted by risk if you want a good valuation, and in 1999 there just wan't enough evidence. This is validated by it dropping dramatically after the bubble popping.
In fact they were only saved because he had secured financing mere months before the collapse, had that not happened Amazon would be listed among the likes of Pets.com.
- confiscate 8y agoTrue. But, the 60-minutes reporter didn't justify his claims based on risk or on math. He was skeptical because Sears is huge, and to him it was laughable [and yes, he did literally laugh many times in that interview] that Amazon can someday be worth more than Sears. To him it was "messed up", and a sign of things wrong with the world
- netcan 8y agoOnly is a big caveat, for the "dotcom" that survived the bust and became the biggest company in the world.
- slededit 8y agoEven if they were established they’d have a tough time getting financing in the .com crash. A bit of luck is always necessary.