Here's How Much a $1000 Investment in Amazon Made 10 Years Ago Would Be Worth Today

For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.What if you'd invested in Amazon (AMZN) ten years ago? It may not have been easy to hold on to AMZN for all that time, but if you did, how much would your investment be worth today?Amazon's Business In-DepthWith that in mind, let's take a look at Amazon's main business drivers. Amazon.com is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe.Its online retail business revolves around the Prime program well-supported by the company’s massive distribution network. Further, the Whole Foods Market acquisition helped Amazon establish footprint in physical grocery supermarket space. Amazon also enjoys dominant position in the cloud-computing market, particularly in the Infrastructure as a Service (IaaS) space, thanks to Amazon Web Services (AWS), which is one of its high-margin generating businesses. Amazon has also become a household name with its Alexa powered Echo devices. Artificial Intelligence (AI) backed Alexa is helping the company sell products and services.Revenues were $574.8 billion in 2023. The company reports revenue under three broad heads—North America, International and AWS, which generated 61.4%, 22.8% and 15.8% of total revenues, respectively.Headquartered in Seattle, WA, Amazon targets three categories of customers—consumers, sellers and website developers. Consumers are offered variety, convenience and free delivery of goods displayed on the company’s websites.The agreements with sellers are varied, enabling them to use the company’s websites to either sell their merchandise directly, or redirect customers to the sellers’ own branded websites. In case of the latter arrangement, Amazon earns a fee for the sales thus generated.Competition comes in the form of traditional retailers, other online retailers, media companies, web portals, search engines, e-commerce companies and cloud computing service providers.Bottom LineAnyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Amazon ten years ago, you're likely feeling pretty good about your investment today.A $1000 investment made in December 2014 would be worth $14,983.08, or a gain of 1,398.31%, as of December 12, 2024, according to our calculations. This return excludes dividends but includes price appreciation.Compare this to the S&P 500's rally of 198.93% and gold's return of 113.75% over the same time frame.Analysts are anticipating more upside for AMZN. Amazon is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Strengthening relationship with third-party sellers is a positive. Growing adoption of AWS services portfolio is aiding AMZN’s cloud dominance. Robust advertising business is also contributing well. Amazon’s strong global presence remains a key growth driver. Deepening focus on generative AI is a major plus. Also, improving Alexa skills along with robust smart home products offerings are tailwinds. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. The company issued positive Q4 2024 guidance fueling investor enthusiasm. We expect 2024 net sales to increase 10.7% from 2023. However, macroeconomic challenges remain and rising transportation and fulfillment center costs are concerns. The stock is up 7.55% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 16 higher, for fiscal 2024. The consensus estimate has moved up as well.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks