Amazon’s Stock-Split Journey and Future Investment Insights
Amazon (NASDAQ: AMZN) has undergone a significant transformation since its inception in 1994. Originally an online bookstore, it is now a major player in e-commerce, cloud computing, and advertising.
As a result of its remarkable growth, Amazon has executed four stock splits to make its shares more accessible for retail investors. This article explores Amazon’s stock-split history and evaluates whether the stock is currently a buy, sell, or hold.
Where should you put $1,000 right now? Our analyst team has just unveiled what they see as the 10 best stocks to buy at this moment. For more information, Learn More »
Overview of Amazon’s Stock-Split History
Since its initial public offering (IPO) in 1997, Amazon has completed four stock splits, the latest being a 20-for-1 split in 2022. Hence, if you purchased one share of Amazon at its IPO and retained it, you would own 240 shares by 2025.
A stock split does not alter your proportional ownership in the company but increases the number of outstanding shares while keeping the market capitalization unchanged. To illustrate Amazon’s impressive performance, holding onto one share from the IPO would now have grown to over $48,000, translating to a remarkable return exceeding 200,000%.
| Month and Year | Event | Number of Shares |
|---|---|---|
| May 1997 | IPO | 1 |
| June 1998 | 2-for-1 stock split | 2 |
| January 1999 | 3-for-1 stock split | 6 |
| September 1999 | 2-for-1 stock split | 12 |
| June 2022 | 20-for-1 stock split | 240 |
Data source: Amazon. Chart by author
Should You Buy Amazon Stock Before Another Possible Split?
For those investing for the long haul, the key takeaway is not merely the number of shares owned, but rather the strength of the company and the importance of long-term holding. If Amazon continues to innovate and grow organically, its shareholders are likely to reap benefits, regardless of future stock splits.
Over the past three years, Amazon has achieved an impressive compound annual revenue growth rate of 11%. With a projected investment of $100 billion in artificial intelligence by 2025, the company may have identified its next area for growth.
For investors currently assessing their options, Amazon’s stock remains a buy, especially considering it is trading near a three-year low valuation, illustrating its potential for recovery and growth.
AMZN PE Ratio data by YCharts
Is It Time to Invest $1,000 in Amazon?
Before purchasing shares in Amazon, consider this:
The Motley Fool Stock Advisor team has identified their top 10 stocks for investors right now… notably, Amazon is not on this list. The selected stocks are poised to yield significant returns in the upcoming years.
For instance, when Nvidia was recommended on April 15, 2005, if you had invested $1,000 then, it would now be worth $721,394!*
Stock Advisor delivers a straightforward pathway to investment success, including portfolio building guidance, analyst updates, and two new stock recommendations each month. The Stock Advisor service has exponentially outperformed the S&P 500 since 2002.* Stay informed and access the latest top-10 list by joining Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of March 24, 2025
John Mackey, former CEO of Whole Foods Market, which is part of Amazon, is a member of The Motley Fool’s board of directors. Collin Brantmeyer holds positions in Amazon. The Motley Fool has positions in and recommends Amazon. A disclosure policy is available.
The views and opinions expressed here are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
