r/investing
Just a reminder - AMZN was NOT included in SP500 for 8 years!
Historical context shows AMZN took 8 years to join S&P 500 post-IPO, suggesting patience is warranted for current high-growth unprofitable tech firms.
- Long-term value creation often precedes index inclusion and sustained profitability, as demonstrated by Amazon's history.
- Current market anxiety over unprofitable tech IPOs may be overstated given historical precedents of successful long-term holds.
- Amazon's eventual dominance validates the strategy of holding high-growth companies through early unprofitable phases.
Since people are worried about unprofitable companies like SpaceX, OpenAI and Anthropic being fast tracked into Nasdaq, here is a reminder of when Amazon was added to NASDAQ100 and SP500 -
Amazon Timeline -
- Amazon went public on May 15, 1997, at an initial public offering (IPO) price of $18.00 per share.
- Amazon was added to the NASDAQ100 index effective at the market open on December 21, 1998.
- Amazon reported its very first quarterly net profit ($5 million) in Q4 2001.
- Amazon joined the SP500 index on November 18, 2005.
Amazon also didn’t IPO at $1.78T, while simultaneously calling itself an AI company, fueling bubble fears
We also had a sensible system of government and weren't simultaneously the largest threat, and largest laughing stock of the modern world at that time.
So I expect things will go differently this time.
Amazon was an online book store.
Imagine going back to the 90s and telling Jeff Bezos that in 20 years he'll be famous for making truck drivers piss in bottles
Let him know how much his wife gets in the divorce also. Then show him a picture of the plastic monstrosity he marries next.
It's the funniest thing. The guy gets way from his wife - who has substance and is a genuinely amazing, smart, and generous person - for a low-rent gold-digger who is shallow in all respects and looks like a first-generation rough version of a sexbot.
You can tell OP wasn't even born when they were still a bookstore. Kid's trying to edgily be like "It's different this time /s" like that validates a shoddily constructed comparison.
Now it’s a computer service company with a drop shipping side hustle.
too late with that /s lol.
The quotation marks should have made that obvious.
Amazon was not space x? No way
Amazon started as just a book seller, not sure anyone saw it as a future deliver to your door 'everything store'
In revisionist history world yeah.
Does anybody actually care about the profitability part? It’s the Float and the Seasoning portions that worry me.