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Amazon Investment Returns Over 20 Years
If you had invested $10,000 in Amazon.com (NASDAQ: AMZN) 20 years ago, your stake would now be worth $1,183,328, reflecting a 118-fold increase in value, with an average annual gain of approximately 27%. For those who invested $1,000, their investment would have grown to $118,332, significantly outperforming the S&P 500’s average return of 9.2% during the same period.
In terms of share growth, an initial purchase of 100 shares two decades ago, which split 20-for-1, would now total 2,000 shares, representing the same 118-fold increase. Despite the potential for past regret, current valuations are still attractive, with Amazon’s forward Price-to-Earnings ratio at 35, below its five-year average of 47.
Amazon Web Services continues to be a strong growth driver, with revenue climbing 17% year-over-year in the last quarter, while the company’s overall revenue rose by 9%. However, investing in Amazon now is scrutinized, as recent analyst recommendations indicate that other stocks may present better opportunities.
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