The Incredible Journey of Amazon Stock Since Its IPO

Amazon (NASDAQ: AMZN) has made many investors millionaires during its nearly three decades of trading. If you were fortunate enough to purchase a share when it first went public (IPO), you would find that your holdings have significantly increased, alongside a corresponding rise in your wealth. Amazon experienced its latest stock split in 2022, marking a significant milestone in its history of share adjustments.

Long-Term Holding Yields Rewards

Since going public in 1997, Amazon has undergone a total of four stock splits. These splits have helped to lower the price per share while increasing the total number of shares held. The first three splits occurred shortly after the IPO due to Amazon's rapid growth, which was reflected in its soaring stock price. Specifically, Amazon executed a 2-for-1 split in March 1998, followed by a 3-for-1 split in November 1998, and another 2-for-1 split in 1999. After a lengthy period without splits, the stock price climbed into the thousands, leading to a remarkable 20-for-1 split in 2022.

At its IPO, Amazon's stock was priced at $18. However, taking into account the stock splits, the price of that initial share would now be adjusted to $0.075. If you had purchased just one share at the IPO, you would currently hold a total of 240 shares. As of now, those shares would be valued at approximately $47,280.

While one share alone may not allow for early retirement, most investors don't limit themselves to a single share. For instance, if you had invested $100 at the start, today your shares would have grown to be worth over $200,000. Although this amount might not be sufficient for retirement, it still represents a substantial financial gain.

Amazon has encountered its share of challenges throughout the years, but the principle of buying and holding onto shares of a company you believe in can lead to significant wealth over time. Although the explosive growth of Amazon's stock isn't as pronounced today as it was at its IPO, investing in companies with a solid foundation can yield dependable returns even as risks evolve.

Note: The historical performance of stocks is not indicative of future results. Investing involves risks.

Amazon, Stock, Investment