Amazon ($AMZN) is one of the biggest retailers in the world. Their market capitalization is almost as big as two Walmarts ($WAL), fifteen Targets ($TGT), and fifty Macy’s ($M). They’re not the sole reason why the retail industry is in the toilet, but they’re one of them.
Amazon is also one of the most popular stocks on Wall Street. They bring in billions of revenue each year thanks to their retail business and their web hosting service (AWS). The Washington-based company is constantly releasing new, innovative products that attract customers, woo investors, and make the site a hit year after year and quarter after quarter.
Amazon’s growth isn’t slowing down any time soon. Earlier this week, the company’s shares passed the $900 mark, and the current price of a single share of $AMZN stock is $909.28. Compare this to a year ago, when the same stock was worth $602 a share. That’s over a $300 increase in a year, something most companies only dream about.
While Amazon’s continued growth is great for all investors, it’s their original investors who are reaping the biggest rewards. These smart individuals stuck with the company since day one, when they went public on May 15, 1997. Now, they’re seeing some of the biggest stock returns imaginable.
Just how much are these OG Amazon investors worth? Let’s take a look.
Amazon’s stock increased by over 52,000% since they went public.
When $AMZN first landed on the stock market, the company was worth $18 a share. Their stock split three different times since then and is now worth $909.28 a share. Factoring in the splits, $AMZN increased by 52,343.08% since May 15, 1997.
What does this mean for original investors?
If you invested $1,000 during Amazon’s initial public offering and kept your money in the company, your original investment would currently be worth $524,430.81, or a gain of $523,430.81. If you invested $10,000 during the IPO, you would be $5,234,308.06 richer.
What does this mean for current and new investors?
If you invested in Amazon within the last year (or any time before today), you absolutely made money. If you invest in Amazon today, you’re not guaranteed to make money (nor are you ever). Yet if the company’s growth continues in this pattern, Amazon investors could be seeing some even sweeter gains in the future.
Should you invest in Amazon?
The company is growing at an exponential rate, and they don’t show any signs of slowing down. If you like the twenty-plus years of data on the company’s insane growth and think they’ll only continue to go up, do your research and consider investing in this company. Chances are you won’t make as much money as original Amazon investors, but you could still see some sweet gains.
If you think the company will somehow suffer losses and tough times ahead (which is admittedly unlikely), you might want to invest elsewhere.