As of Tuesday, the average target price for Amazon stock from analysts is 243.33, FactSet says. The average target implies roughly 10% upside from Amazon's price as of market close Monday. Analysts with Bernstein recently upped their price target for Amazon to 265, from 235, and named it their "top idea" for 2025.
Those gains translate to a 25.8% compound annual growth rate for Amazon compared to an 8.2% CAGR for the S&P 500 in that time. As a result, $10,000 in AMZN stock purchased 20 years ago would now be worth $983,555. A $10,000 investment in the S&P 500 over the same period, however, would amount to $48,675.
Even though it's already made millionaires, this company still has incredible growth prospects. It may not be the same as a young upstart, but it also comes with less risk. Amazon stock should amply reward investors over the next five years.
Did you know that a $1,000 investment in Amazon's IPO in 1997 would be worth $1.87 million today? That's a staggering return of over 186,900% 🚀 ✨ But it wasn't all smooth sailing. Investors had to endure a 95% drop during the dot-com bust, waiting until 2009 to recover.
Amazon shies off high after hitting $2,000 per share for the first time. It's a major milestone in the stock's climb to match Apple's $1 trillion market valuation.
What does that look like on a brokerage statement? Check out the above chart and you'll see that if you invested $1,000 in Apple stock 20 years ago, it would today be worth more than $290,000. The same $1,000 invested in the S&P 500 would theoretically have turned into about $7,600 over the same period.
Amazon (AMZN), the e-commerce and cloud giant, saw an outstanding performance in 2024, reaching an all-time high of $233. Gaining 50%, Amazon outpaced its benchmark indices, including the S&P 500 (SPX), which rose 23%. The key question is whether Amazon's growth momentum will persist in 2025.
AMZN Stock 12 Month Forecast
Based on 48 Wall Street analysts offering 12 month price targets for Amazon.Com, Inc. in the last 3 months. The average price target is $249.16 with a high forecast of $290.00 and a low forecast of $197.00.
Then, the company held off on stock splits for quite some time, choosing to let shares appreciate in step with Amazon's growth. However, once its price moved and stayed well above $3,000 beginning in late 2020, the company couldn't hold out any longer.
If you had invested $1,000 in Apple stock on Jan. 24, 1984, today, you would have $1,593,809. Likewise, if you had invested $1,000 in an index fund replicating Nasdaq, you would have $55,090. A similar $1,000 investment in an index fund that replicates the S&P 500 would be worth $29,230.
With that, you could expect your $10,000 investment to grow to $34,000 in 20 years.
(NASDAQ:AMZN) is arguably one of the best blue chip stocks to buy, as it is a market leader in e-commerce and cloud computing. While the stock was up by about 47% in 2024, there is room for additional gains owing to the investments the company is making to strengthen its growth metrics and long-term prospects.
Investors should temper expectations
Wall Street consensus analyst estimates point to revenue and earnings per share increasing at compound annual rates of 7% and 10.6%, respectively, between fiscal 2024 and fiscal 2027. These are healthy growth rates, to be fair.
The Future of Amazon
Forecasters predict that Amazon will reach $200 per share a year from now and will continue to rise to $250 per share at the end of 2026. In 2027, the prediction is for a price of $300, and $250 by the end of 2028.
Investors might want to bet on Amazon (AMZN), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy).
What percentage of Amazon (AMZN) stock is held by retail investors? According to the latest TipRanks data, approximately 53.80% of Amazon (AMZN) stock is held by retail investors. Who owns the most shares of Amazon (AMZN)? BEZOS JEFFREY P owns the most shares of Amazon (AMZN).
For Amazon, the company still has many new avenues for future expansion in mind, including (but not limited to) media content, grocery stores, and health care. Growth is still very much the top priority for Amazon. As a result, investors should not expect a dividend payment any time soon.
Tesla Stock Price Predictions for 2030
End-of-Year 2030: Most Bullish Projection: 1259 (CoinPriceForecast) Most Bearish Projection: 348.87 (Gov Capital)
Global warming accelerates destruction of the Amazon. Deforestation and climate change could damage or destroy as much as 60 percent of the Amazon rainforest by 2030, according to a new report from environmental group WWF.
For our example, let's say you invest $10,000 in a 401(k) today and you aim to withdraw it in 20 years. While it's invested, you earn a 10% average annual return. After two decades, your $10,000 would be worth $67,275.
The Numbers on Apple Stock
Those gains translate to a 32.3% compound annual growth rate (CAGR) for Apple compared to an 8.3% CAGR for the S&P 500 in that time. That means that $10,000 in AAPL stock purchased 20 years ago would be worth more than $2.71 million today, assuming reinvested dividends.
Prediction: 2 AI Stocks Will Be Worth More Than Apple Stock by the Year's End in 2025. Amazon and Nvidia could surpass Apple's current market value of $3.7 trillion before the current year ends. Amazon's status as the largest public cloud means the company is well positioned to monetize AI infrastructure services.