If You Had Invested In Amazon's IPO

Graph of this issue: https://infographic.statista.com/normal/chartoftheday_15334_amazon_long_term_return_n.jpg

Amazon’s share price reached yet another historic high on Tuesday, briefly pushing the company’s market capitalization beyond $1 trillion. Despite the fact that Amazon’s valuation had fallen back to $995 billion by the end of the trading day, it is only a matter of time before the e-commerce giant joins Apple in the trillion dollar club.

Amazon has been on a bull run for a while now, with its share price more than quadrupling over the past three years alone. While Amazon shares have looked like a very good investment for the better part of the 21 years since the company’s IPO, the past five years really have been the icing on the cake.

Anyone smart, patient or just lucky enough to have bought Amazon shares in the company’s 1997 IPO and kept them, can now look at a small or (depending on the initial investment) sizeable fortune. As our chart illustrates, an initial investment of $180, enough to buy 10 shares in May 1997, would now be worth more than $240,000. Next to the stock price’s climb from $18 to more than $2,000, the huge return on investment can be attributed to three stock splits, which turned one share bought in 1997 into twelve shares by the end of 1999.

How do you think the future looks for Amazon? Has the stock become too expensive (PE value)?

Submitted September 05, 2018 at 11:16AM by gorillaz0e https://ift.tt/2Q4w3OB