Amazon shies off high after hitting $2,000 per share for the first time (2024)

FAQs

Amazon shies off high after hitting $2,000 per share for the first time? ›

Amazon stock hit $2,000 per share for the first time Thursday. Shares rose as much as 1.4 percent to $2,025.57 but ultimately shied away from the record high to close at $2,002.38. It's a major milestone in the stock's climb to match Apple's $1 trillion market valuation.

The closing price for Amazon (AMZN) in 2000 was $0.78, on December 29, 2000. It was down 80.9% for the year. The latest price is $186.49.

Key Points. Amazon has soared more than 1,000% over the past decade, and the stock climbed past $3,000 prior to its last stock split. The company generates billions of dollars in earnings, thanks to its leadership in e-commerce and cloud services.

Amazon.com went public on the Nasdaq, offering 3 million shares at an initial price of $18 per share, on May 15, 1997. In a press release, the company described itself as an "online retailer of books, offering more than 2.5 million titles through a consistent search and retrieval interface."

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).

Monday marked the 20-year anniversary of Google's IPO. The stock has appreciated over 6,500% since then. In other words, if you invested $1,000 in Google at its closing price on Aug. 19, 2004, your shares of Alphabet, now the search giant's parent, would have been worth $66,521.70 as of Monday's close.

Amazon shares, which closed Friday at $995.78, now trade at 14.3 times their closing price of $69.63 on May 29, 2007, just a decade ago. The stock reached an intraday high of $999.00 on Thursday.

Jeffrey Bezos owns the most shares of Amazon (AMZN).

No. Amazon (AMZN) isn't expected to split its stock in 2024 because it only went through this process two years ago. Amazon's last stock split happened in June 2022. However, stock market analysts believe it could be a possibility over the longer term if the company's share price continues to rise.

How much is $10,000 invested in Amazon 20 years ago? ›

Those gains translate to a 23.2% compound annual growth rate for Amazon compared to a 6.2% 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 $645,262. A $10,000 investment in the S&P over the same period, however, would amount to $33,452.

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 almost $448,000. The same $1,000 invested in the S&P 500 would theoretically have turned into about $7,300 over the same period.

Buying $1000 In MSFT: If an investor had bought $1000 of MSFT stock 20 years ago, it would be worth $16,279.07 today based on a price of $413.00 for MSFT at the time of writing.

Currently, Amazon.com has a market capitalization of $1.74 trillion. Buying $100 In AMZN: If an investor had bought $100 of AMZN stock 10 years ago, it would be worth $1,038.46 today based on a price of $166.10 for AMZN at the time of writing.

The Numbers on Apple Stock

Those gains translate to a 36.2% compound annual growth rate (CAGR) for Apple compared to an 8.5% 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 $4.85 million today, assuming reinvested dividends.

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. The record high comes a day after Amazon gained 3.2 percent, sparked by a bullish call by Morgan Stanley.

Taking all of the splits into account, one share of Amazon from 1997 is equal to an incredible 240 shares in the present. To be clear, that's 240 shares multiplied by the current share price of about $187 — all stemming from buying a single share at $18 in 1997.

Gross profit grew to $656 million in 2000, from $291 million in 1999, up 125%. electronics, tools, and kitchen. International sales grew to $381 million in 2000, from $168 million in 1999.

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. Much of Amazon's future success, like that of many tech companies, will depend on the trajectory of AI.

To substantiate his claim, he noted that Amazon's customer count increased from 14 million to 20 million between 1999 and 2000, sales climbed from over 68% to $2.76 billion, pro forma operating loss narrowed by 6% and average spend per customer rose 19%, among other things.