Amazon boasts a wide competitive moat in retail with over 200 million Prime members. The company is well-positioned for growth in artificial intelligence and cloud computing. The stock still offers solid value based on Amazon's growing cash flow.
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.
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.
Ten Year Stock Price Total Return for Amazon.com is calculated as follows: Last Close Price [ 218.94 ] / Adj Prior Close Price [ 14.74 ] (-) 1 (=) Total Return [ 1,385.6% ] Prior price dividend adjustment factor is 1.00.
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).
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.
Сan Amazon reach $1000 again? Some bullish forecasts suggest it could reach $800 or even $1,000, reflecting a highly optimistic outlook. However, this figure is subject to numerous market conditions and the company's performance over the coming years.
For Netflix, if you bought shares a decade ago, you're likely feeling really good about your investment today. A $1000 investment made in November 2014 would be worth $14,248.59, or a 1,324.86% gain, as of November 7, 2024, according to our calculations.
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.
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.
Amazon.com Inc. shows a Risk Score of 8.00.
With that, you could expect your $10,000 investment to grow to $34,000 in 20 years.
If you are a long-term investor, it is still not too late to buy Amazon stock, given the many growth levers that the company has. For instance, its digital advertising business has a decent growth runway as it ramps up ads on Prime.
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).
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) does not pay a dividend.
After several stock splits, an investment of $1,000 in Amazon's IPO back in 1997 would now be worth around $2.5 million (as of July 1; at a share price of $197.2). As this chart shows, the share price has risen year-on-year.
The all-time high Amazon stock closing price was 232.93 on December 16, 2024.