Amazon told investors they 'may want to take a seat,' here's what that means

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Amazon told investors they 'may want to take a seat,' here's what that means
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Amazon is famous for focusing on long-term investments in the business over short-term gains.

That's because Amazon has been giving investorssince it went public in 1997, letting them know it would prioritize long-term business advantages over short-term gains.

"We will make bold rather than timid investment decisions where we see a sufficient probability of gaining market leadership advantages," Bezos wrote in the 1997 letter. "Some of these investments will pay off, others will not, and we will have learned another valuable lesson in either case." On the company's earnings call, an analyst asked CFO Brian Olsavsky why Amazon decided to build its own testing capability instead of outsourcing it. Could this be a new business line?

"Amazon's experience with creating new processes and products for combating a pandemic might usher it into solving America's healthcare problems," wrote analysts at MKM Partners in a note Friday. "In our view, Amazon's management deserves praise for choosing to invest heavily to address the coronavirus outbreak on multiple levels rather than maximizing its short-term profits because of the demand surge it has caused," analysts at DA Davidson wrote Friday.

Amazon has shown in the past that its heavy investments can pay off. Amazon announced last year its plans to

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