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If You Invested $1000 in Amazon a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Amazon (AMZN - Free Report) ten years ago? It may not have been easy to hold on to AMZN for all that time, but if you did, how much would your investment be worth today?
Amazon's Business In-Depth
With that in mind, let's take a look at Amazon's main business drivers.
Amazon.com is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe.
Its online retail business revolves around the Prime program well-supported by the company’s massive distribution network. Further, the Whole Foods Market acquisition helped Amazon establish footprint in physical grocery supermarket space.
Amazon also enjoys dominant position in the cloud-computing market, particularly in the Infrastructure as a Service (IaaS) space, thanks to Amazon Web Services (AWS), which is one of its high-margin generating businesses.
Amazon has also become a household name with its Alexa powered Echo devices. Artificial Intelligence (AI) backed Alexa is helping the company sell products and services.
Revenues were $513.98 billion in 2022. The company reports revenue under three broad heads—North America, International and AWS, which generated 61.5%, 23% and 15.6% of total revenues, respectively.
Headquartered in Seattle, WA, Amazon targets three categories of customers—consumers, sellers and website developers. Consumers are offered variety, convenience and free delivery of goods displayed on the company’s websites.
The agreements with sellers are varied, enabling them to use the company’s websites to either sell their merchandise directly, or redirect customers to the sellers’ own branded websites. In case of the latter arrangement, Amazon earns a fee for the sales thus generated.
Competition comes in the form of traditional retailers, other online retailers, media companies, web portals, search engines, e-commerce companies and cloud computing service providers.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Amazon ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2014 would be worth $7,804.66, or a 680.47% gain, as of January 12, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 159.46% and the price of gold increased 58.59% over the same time frame in comparison.
Analysts are anticipating more upside for AMZN.
Amazon’s shares have outperformed the industry in the year-to-date period. The company is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Strengthening relationship with third-party sellers is a positive. Additionally, strong adoption rate of AWS is aiding the company’s cloud dominance. Expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers. Robust Alexa skills and expanding smart home products portfolio are positives. The company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds. Considering the abovementioned facts, we expect 2023 revenue to be up 10.8% from 2022. However, inflationary pressure, geopolitical tensions and foreign currency headwinds remain concerns.
Shares have gained 5.26% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Amazon a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Amazon (AMZN - Free Report) ten years ago? It may not have been easy to hold on to AMZN for all that time, but if you did, how much would your investment be worth today?
Amazon's Business In-Depth
With that in mind, let's take a look at Amazon's main business drivers.
Amazon.com is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe.
Its online retail business revolves around the Prime program well-supported by the company’s massive distribution network. Further, the Whole Foods Market acquisition helped Amazon establish footprint in physical grocery supermarket space.
Amazon also enjoys dominant position in the cloud-computing market, particularly in the Infrastructure as a Service (IaaS) space, thanks to Amazon Web Services (AWS), which is one of its high-margin generating businesses.
Amazon has also become a household name with its Alexa powered Echo devices. Artificial Intelligence (AI) backed Alexa is helping the company sell products and services.
Revenues were $513.98 billion in 2022. The company reports revenue under three broad heads—North America, International and AWS, which generated 61.5%, 23% and 15.6% of total revenues, respectively.
Headquartered in Seattle, WA, Amazon targets three categories of customers—consumers, sellers and website developers. Consumers are offered variety, convenience and free delivery of goods displayed on the company’s websites.
The agreements with sellers are varied, enabling them to use the company’s websites to either sell their merchandise directly, or redirect customers to the sellers’ own branded websites. In case of the latter arrangement, Amazon earns a fee for the sales thus generated.
Competition comes in the form of traditional retailers, other online retailers, media companies, web portals, search engines, e-commerce companies and cloud computing service providers.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Amazon ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2014 would be worth $7,804.66, or a 680.47% gain, as of January 12, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 159.46% and the price of gold increased 58.59% over the same time frame in comparison.
Analysts are anticipating more upside for AMZN.
Amazon’s shares have outperformed the industry in the year-to-date period. The company is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Strengthening relationship with third-party sellers is a positive. Additionally, strong adoption rate of AWS is aiding the company’s cloud dominance. Expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers. Robust Alexa skills and expanding smart home products portfolio are positives. The company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds. Considering the abovementioned facts, we expect 2023 revenue to be up 10.8% from 2022. However, inflationary pressure, geopolitical tensions and foreign currency headwinds remain concerns.
Shares have gained 5.26% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.