Amazon Stock Price Doesn't Always Reflect Business Fundamentals

When Amazon went public in 1997, its stock price reached $113, but by 2000, it plummeted to near $6 due to the dot-com crash.

A young CEO Jeff Bezos could have given up or tried to prop up the stock price at any cost. However, he remained focused on growing the business and improving its fundamentals, which were actually getting better despite the declining stock price.

Bezos took a lesson from Benjamin Graham's advice: 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.'

The company's ability to maintain a strong competitive edge and attract repeat customers proved crucial to its success, which eventually rewarded investors.