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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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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
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 $574.8 billion in 2023. The company reports revenue under three broad heads—North America, International and AWS, which generated 61.4%, 22.8% and 15.8% 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 November 2014 would be worth $14,009.87, or a gain of 1,300.99%, as of November 8, 2024, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 193.96% and the price of gold went up 120.99% over the same time frame.
Analysts are anticipating more upside for AMZN.
Amazon’s third-quarter results were driven by Prime and AWS momentum. The stock has outperformed its industry in the year-to-date period. Strengthening AWS services portfolio and its growing adoption rate contributed well to AWS performance. Ultrafast delivery services and expanding content portfolio were beneficial. Strengthening relationship with third-party sellers was a positive. Robust advertising business contributed well. Amazon’s expanding global presence remains a positive. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. Deepening focus on generative AI is a major plus. The company issued positive Q4 2024 guidance fueling investor enthusiasm. However, macroeconomic challenges remain headwinds. Rising transportation and fulfillment center costs are concerns.
Shares have gained 12.54% over the past four weeks and there have been 15 higher earnings estimate revisions for fiscal 2024 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
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
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 $574.8 billion in 2023. The company reports revenue under three broad heads—North America, International and AWS, which generated 61.4%, 22.8% and 15.8% 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 November 2014 would be worth $14,009.87, or a gain of 1,300.99%, as of November 8, 2024, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 193.96% and the price of gold went up 120.99% over the same time frame.
Analysts are anticipating more upside for AMZN.
Amazon’s third-quarter results were driven by Prime and AWS momentum. The stock has outperformed its industry in the year-to-date period. Strengthening AWS services portfolio and its growing adoption rate contributed well to AWS performance. Ultrafast delivery services and expanding content portfolio were beneficial. Strengthening relationship with third-party sellers was a positive. Robust advertising business contributed well. Amazon’s expanding global presence remains a positive. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. Deepening focus on generative AI is a major plus. The company issued positive Q4 2024 guidance fueling investor enthusiasm. However, macroeconomic challenges remain headwinds. Rising transportation and fulfillment center costs are concerns.
Shares have gained 12.54% over the past four weeks and there have been 15 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.