Bloomberg Television - Amazon's $400 Price Target Hike | On This Day
In 1998, Henry Blodget, a Wall Street analyst, made a bold prediction that Amazon's stock price could nearly double within a year, despite the company being unprofitable at the time. His forecast was based on the potential for Amazon to expand its product lines and achieve significant revenue growth. Remarkably, Amazon's stock reached the predicted level in just three weeks, earning Blodget significant fame and a lucrative position at Merrill Lynch. However, his career took a downturn when the Internet bubble burst, and he was later barred from the securities industry due to fraud charges related to misleading stock recommendations. Despite this setback, Blodget successfully transitioned to media, founding Business Insider with backing from Jeff Bezos, Amazon's founder.
Key Points:
- Henry Blodget predicted Amazon's stock would double in 1998, despite its lack of profitability.
- Amazon's stock reached Blodget's target in three weeks, boosting his career.
- Blodget joined Merrill Lynch with a $5 million package due to his successful prediction.
- The Internet bubble burst led to Blodget's downfall and a ban from the securities industry.
- Blodget later founded Business Insider, supported by Jeff Bezos.