If I Invested $100 in Amazon IPO, How Much Would I Have Now?
Our focus today will be Amazon. For those, who are not aware, this is American electronic commerce (buying and selling products online) and cloud company which is the world’s largest internet retailer in terms of revenue and market capitalization and second largest measured in total sales (after Alibaba group – a future subject of our articles).
Founded in July 1994 by the former Wall Street Investment Manager Jeff Bezos who after reading a report about the future of the Internet that projected annual Web commerce growth at 2,300 % created a list of products that could be marketed online. That’s how it all first started as an online book store. Little by little the company started trading different kinds of products and in 2000 they created a curved arrow logo leading from A to Z, representing that the company carries every product from A to Z, with the arrow shaped like a smile. Their business plan was very unusual for that time – no substantial profit in the first few years, a slow growth that caused stockholders to complain that the company was not reaching profitability fast enough to justify their investment or even survive in the long-term. But when “dot-com bubble” started in the beginning of the 21st century and destroyed many e-companies in the process, Amazon survived and grew on past the tech crash to become an enormous factor in online sales. So the company made its first profit precisely during these hard times and the owner Bezos was named Person of The Year by the Time Magazine.
When Amazon first went public in 1997, its stock was priced at just $18 per share. During this modest beginning if you had invested $100 in Amazon Initial Public Offering (little less than 6 shares) with the included dividends that investment would have been worth nearly $50,000 by late October and November 2017. Simply the stock has multiplied around 496 times.
This is just one more of the many stories of the immeasurable opportunities provided by this industry and we will continue with the examples showing you that willingness and patient are the keys of success in online trading.
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