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Jeff Bezos: From Garage Startup to Leading Amazon to a $2 Trillion Market Cap

JOURNALIST NOTE July 15, 2024
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TABLE OF CONTENTS

  1. Introduction
  2. Journalist Note

1. Introduction

  • Using data collated from various sources, this article explores the journey of Jeff Bezos from the inception of Amazon to its monumental growth as an e-commerce titan. The information gathered spans several domains including historical milestones, financial data, and personal achievements.

2. Journalist Note

  • Jeff Bezos, born in Albuquerque, New Mexico, on January 12, 1964, graduated from Princeton University in 1986 with degrees in computer science and electrical engineering. After working on Wall Street, he embarked on a cross-country road trip in 1994, which led to the founding of Amazon in the garage of his rented home in Bellevue, Washington, on July 5 of the same year.

  • Amazon, initially an online bookstore, quickly expanded its product range and market reach. Launched officially on July 16, 1995, the platform sold the world's largest collection of books, starting with Douglas Hofstadter's 'Fluid Concepts and Creative Analogies.' Within the first two months, Amazon had already reached sales figures of $20,000 per week, catering to customers in all 50 states and over 45 countries.

  • In 1997, Amazon went public on the NASDAQ stock exchange under the ticker symbol AMZN, offering shares at $18 each. Despite not turning a profit at the time, Bezos emphasized long-term market leadership over short-term profitability in his first letter to shareholders.

  • The early 2000s marked significant diversification for Amazon. The launch of Amazon Web Services (AWS) in 2002 and Amazon Prime in 2005 were game-changers. AWS allowed businesses to rent data storage and computing power, while Amazon Prime offered customers benefits like free two-day shipping and exclusive content, enhancing customer loyalty and satisfaction.

  • By 2017, Amazon had become the leading e-retailer in the United States with net sales of approximately $178 billion. The acquisition of Whole Foods Market the same year for $13.7 billion marked its expansion into the grocery sector.

  • Jeff Bezos stepped down as CEO in July 2021, handing over the position to Andy Jassy but remained as the executive chairman. His net worth, closely tied to Amazon's stock, has seen significant fluctuations. As of June 2024, Bezos regained the title of the world's richest man with a net worth of about $210 billion. This growth is largely due to the nearly 25% rise in Amazon's stock price since the start of the year.

  • Jeff Bezos's journey from a Wall Street executive to heading one of the largest e-commerce giants epitomizes entrepreneurial success. Under his leadership, Amazon's valuation recently crossed the $2 trillion mark, solidifying its position as a cornerstone of global commerce and innovation.

3. Glossary

  • 3-1. Jeff Bezos [Person]

  • Jeffrey Preston Bezos, born on January 12, 1964, is the founder, executive chairman, and former CEO of Amazon. A Princeton graduate with degrees in computer science and electrical engineering, Bezos launched Amazon in 1994, transforming it from an online bookstore into the world’s largest e-commerce platform. As of June 2024, he regained the title of the world's richest man with a net worth of $210 billion.

  • 3-2. Amazon [Company]

  • Founded on July 5, 1994, by Jeff Bezos in Bellevue, Washington, Amazon started as an online bookstore and has since diversified into various domains, including cloud computing (AWS), e-retailing, and content creation. Amazon's market cap crossed $2 trillion as of 2024. Major milestones include launching AWS in 2002, Amazon Prime in 2005, and acquiring Whole Foods Market in 2017.

  • 3-3. Amazon Web Services (AWS) [Technology]

  • Launched in 2002 initially as a suite of tools for web developers and expanded in 2006 to offer cloud storage and computing services. AWS is now a cornerstone of Amazon’s business, providing extensive cloud infrastructure that powers enterprises globally.

  • 3-4. Amazon Prime [Service]

  • Introduced in 2005, Amazon Prime is a subscription service offering benefits like free two-day shipping, access to streaming content, and exclusive deals. It has built a high level of customer loyalty and contributed significantly to Amazon's revenue growth.

  • 3-5. Whole Foods Market [Company]

  • Acquired by Amazon in 2017 for $13.7 billion, Whole Foods Market marked Amazon’s significant entry into the grocery sector. This acquisition expanded Amazon’s physical retail footprint and incorporated Whole Foods' high-quality product offerings into its distribution network.

  • 3-6. NASDAQ [Stock Exchange]

  • Amazon went public on the NASDAQ stock exchange under the ticker symbol AMZN on May 15, 1997. The IPO was priced at $18 per share, and by the end of the trading day, the share price had risen to $23.50. NASDAQ remains the exchange on which Amazon is traded, symbolizing its growth and financial success.

4. Source Documents