Amazon Hits $1000

Chip Corley |

Amazon went public May 14, 1997 at $18 per share. According to its original prospectus, Amazon (AMZN) had 23.8 million shares of common stock outstanding. The market valuation the day of its IPO was $429 million; now it is $481 billion. Investors patient enough to buy and hold AMZN over the course of 20 years received a mind boggling annualized return of 38.44%, equivalent to a 66,566% total return. $5,000 invested into Amazon in ’97 is worth $3.3 million today. Jeff Bezos, Founder and CEO, has become one of the world’s richest individuals; Forbes estimates Bezos’ net worth exceeds $84 billion. Bezos has been a large seller of AMZN stock over the years to diversify his wealth, but he still owns 17% of Amazon’s total outstanding shares. At $1,000 per share, Bezos' holdings in AMZN are $81.9 billion.



Amazon’s transformation from an online book store merchant to provider of everything to everyone has upended the $5.3 trillion retail marketplace. Amazon is reported to have over 300 million people using its services yearly, and the company is responsible for a quarter of all retail growth. Amazon’s Prime membership provides its customers with a bevy of benefits, specifically, free shipping on most online orders. Roughly half of American households have opted for Prime membership, an amazing testimonial in itself. Amazon is rapidly entering the grocery store arms race with its newest venture Amazon-Go, where customers using the Amazon app walk into the store and check out virtually just by supposedly putting items into the cart. Amazon-Go stores hardly have any employees; talk about savings. Drones are next. Amazon says that it will deliver purchases to our doorsteps via drones within an hour. Amazon is also competing in providing home services for its customers. This article would take forever to cover all of the things Amazon is doing. Here is the company’s about link.

Amazon’s stock valuation has always been in the stratosphere. It did not turn a profit its first five years as a public company. The Amazon story brings up the age old question, "Is it better to bet on the horse or the jockey?" Jeff Bezos has beaten just about every CEO out there. In this stock’s case, bet on the jockey. Click here to subscribe to Chip's investment newsletter.

Amazon Stock Chart

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Companies

Symbol Name Price Change % Volume
AMZN Amazon.com Inc. 1,006.34 3.40 0.34 2,008,401 Trade

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