The Market Is Mispricing Resilience
Harvard Business Review · 13 Nov 2026

The Market Is Mispricing Resilience

In 2001, Amazon’s stock had fallen roughly 95% from its December 1999 peak. Most of the venture-funded companies of its generation were in liquidation or had disappeared. But Amazon had spent 1999 building fulfillment capacity far ahead of its own demand, expanding from 300,000 square feet of distribution centers to more than 5 million in under a year. When the crash came, that capacity gave Amazon optionality.


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