What would we do without experts?
Posted by Ron Coleman on July 31, 2007
Instapundit links to this quote in USA Today:
Investors saw the launch of Amazon Prime as the latest manifestation of Bezos’ fixation on free shipping, a profit drainer. They hammered Amazon (AMZN) shares down to $30 two years ago after the Seattle company began offering the unlimited free two-day shipping service for a $79 yearly fee.”Wall Street hates it when we lower prices, give away free shipping, and offer Amazon Prime,” Bezos said in an e-mail interview. “But we know in our bones that siding with the customer pays off for everyone in the end.”
Now, Prime is starting to look like a linchpin to Amazon’s remarkable run of increases in quarterly sales — and investors no longer appear kerfuffled. After the online retailing giant last week reported a singularly sharp rise in sales for its second quarter, its shares shot up 25%, topping $86 — a seven-year high.
What does this say about the wisdom of “Wall Street”? Is Jeff Bezos such a visionary that he “sees” truths such as these that armies of investment house analysts — “Wall Street” — miss?
If so, well, I understand why Jeff Bezos makes a lot more than I do. But I don’t understand why Wall Street does.
UPDATE: A lot of lessons can still be learned in The Market, it seems.
Leave a Reply