Analysts with Evercore ISI, TD Cowen and Truist Securities also have recently named Amazon as a top pick. Bernstein analyst Mark Shmulik told clients that Amazon is successfully defending its e-commerce market share while also reaccelerating Amazon Web Services growth after a slowdown in 2022 and part of last year.
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 inventory risk is the collective term for the events and factors affecting your FBA business's income and performance. These include stockouts, excess stock, inaccurate forecasting, theft, product damage, and product value loss.
"The Risk Score is a relevant measure for the assessment of a stock attractiveness. Amazon.com Inc. shows a Risk Score of 8.00.
Long-term Amazon investors have come to expect outperformance over the past 20 years. Since 2004, Amazon's market capitalization has skyrocketed from tens of billions of dollars to more than $2.3 trillion, making Amazon one of the most valuable companies in the entire market.
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.
Founder and longtime CEO Jeff Bezos instilled a "Day One" philosophy in the company and insisted that it would invest for the long term. Amazon has never paid a dividend, and the company rarely buys back its stock. In fact, its share count has grown consistently over its history due to share-based compensation.
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.
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.
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!
“COST/AMZN/WMT—aka 'The Big Three' will likely gobble ~60%+ of U.S. retail growth this year, so we see Costco's elite share gain as likely to sustain outperformance.” Most of the Street sides with Melich, with 58% of analysts rating Costco stock a Buy, 37% a Hold, and 5% Sell, according to FactSet.
Market Expert Ruchir Sharma says that the stock market's momentum looks likely to sputter in 2025 and that it could falter as investors grow wary of the US's mounting debt problems.
Try Flipping Things
Another way to double your $2,000 in 24 hours is by flipping items. This method involves buying items at a lower price and selling them for a profit. You can start by looking for items that are in high demand or have a high resale value. One popular option is to start a retail arbitrage business.
Equities are generally considered the riskiest class of assets. Dividends aside, they offer no guarantees, and investors' money is subject to the successes and failures of private businesses in a fiercely competitive marketplace. Equity investing involves buying stock in a private company or group of companies.
Amazon has a consensus rating of Strong Buy which is based on 47 buy ratings, 1 hold ratings and 0 sell ratings. The average price target for Amazon is $249.16. This is based on 48 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
On the earnings side, earnings per share (EPS) are expected to rise 20% in 2025, although projections indicate a 77% gain for 2024. That said, 20% earnings growth is still impressive and is reason enough to own the stock, as long as it can be purchased at a fair price.
With that, you could expect your $10,000 investment to grow to $34,000 in 20 years.