The board has long authorised Amazon to repurchase its own shares, but executives have done so only sporadically. Amazon in 2022 announced a program of up to $10 billion in buybacks, but the Seattle-based company hasn't executed any since the second quarter of that year.
Amazon's growth
A $1,000 investment at the closing price on the day of the IPO and not sold would be worth roughly $1.87 million today. The stock made its debut on May 15, 1997, at a pre-split closing price of $23.50 per share ($0.098 per share split-adjusted).
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.
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.
Analysts See 13% Upside For Amazon Stock
The 30-year-old Amazon is among the world's most valuable companies. It is a leader in e-commerce spending and in cloud computing through its Amazon Web Services business. It is also quickly growing its advertising business into a challenger to Google (GOOGL) and Meta (META).
Debt Numbers: By the end of 2023, Amazon's long-term debt was around $135 billion. They're big on using debt strategically, whether for acquisitions, expanding AWS, or building warehouses.
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.
Of the 47 analysts who recommended Amazon in June, 44 rated it a buy or a strong buy. 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.
Amazon (AMZN -0.22%) ended 2024 on a high note, up 44% in 52 weeks. But more importantly, it's coming into the year with all systems go to leverage its e-commerce platform to gain market share and harness the power of artificial intelligence (AI) to supercharge its cloud platform.
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.
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.
With that, you could expect your $10,000 investment to grow to $34,000 in 20 years.
Amazon stock is increasingly seen as a reasonable value. While the company has historically traded at negative or triple-digit price-to-earnings ratios, its valuation metrics are improving. The company's stock currently stands at around 42x 2024 earnings and about 34x 2025 consensus earnings.
A buyback will increase share prices: Stocks trade in part based on supply and demand, and a cut in the number of outstanding shares often causes a price increase. Therefore, a company could increase its stock's value by limiting supply with a share repurchase.
When you run out of stock, Amazon will automatically remove your listing, marking it as “inactive”. And when you don't have an active listing, you can't sell!
Tesla Stock Price Predictions for 2030
End-of-Year 2030: Most Bullish Projection: 1259 (CoinPriceForecast) Most Bearish Projection: 348.87 (Gov Capital)
Amazon (AMZN) does not pay a dividend.
Arguments for buying Amazon include its increasing earnings and strong growth prospects. No one knows for sure how Amazon stock will perform in 2025, but it should still be a great pick for long-term investors in the new year.
He invested $10,000 from his personal savings to incorporate a company called Cadabra, Inc. Eventually, he changed the name to Amazon after one of his attorneys misheard the name as Cadaver. Then came his most risky investment. His parents invested $250,000, a significant portion of their savings.
Multiplied by the May 6, 2024, share price of ~$187 and that $1,000 investment in 1997 would now be worth $2,493,532.80. That's right, a mere $1,000 outlay in 1997 would yield investors nearly $2.5 million today (and a hefty tax bill from Uncle Sam). If you missed the proverbial boat, don't feel too bad.
Companies with rank of 3 or less are likely in financial distress. Amazon.com has the Financial Strength Rank of 8.
United States. The United States boasts both the world's biggest national debt in terms of dollar amount and its largest economy, which resolves to a debt-to GDP ratio of approximately 121.31%.
Pay up, Apple.
The European Union's highest court ordered Apple to pay Ireland 13 billion euros, or about $14.4 billion, plus interest, for 11 years' worth of unfair tax breaks.