If You'd Invested $10,000 in Amazon Stock 25 Years Ago, Here's How Much You'd Have Today

Amazon (AMZN) has proven to be one of the most rewarding stocks available on the market, maintaining its strong performance over the years. Today, the company is focusing on promising areas like artificial intelligence (AI), but its rise to prominence began with e-commerce. In its early days, it was primarily known as an online bookseller, evolving into a global e-commerce giant that has significantly shaped the retail landscape.

E-commerce Expansion and New Ventures

When Amazon first started, it was a modest online bookstore. However, it swiftly diversified its offerings and branched out into various sectors by acquiring numerous companies around the world. Now, in addition to being a leader in the e-commerce space, Amazon also dominates cloud computing and is a substantial player in the streaming industry. The company continues to grow through acquisitions, recently buying One Medical in 2023 to enhance its footprint in healthcare.

In the early years of being publicly traded, Amazon's potential was already visible. In 1997, its inaugural year as a public company, it reported a remarkable revenue growth of 838% year over year. By 25 years ago, the company had established itself in the market, and its stock had surged over 3,000%. An investment of $10,000 back then would now be worth approximately $686,000. While it may not reach the millions yet, it's certainly heading in that direction.

Future Prospects and Investment Strategies

Investors who have seen such substantial returns might think about selling their shares now. However, Amazon still holds immense potential for future growth. According to CEO Andy Jassy, the rise of generative AI represents a "once-in-a-lifetime" chance for the company. Those who have held onto their shares for so long likely understand the importance of long-term investing. Yet, they might want to consider selling some shares to reinvest in other growth stocks, thereby ensuring their portfolios are well diversified.

John Mackey, the former CEO of Whole Foods Market, which is a subsidiary of Amazon, is also a member of the board of directors for The Motley Fool. Jennifer Saibil has no stake in any of the stocks mentioned. The Motley Fool holds positions in and recommends Amazon.

Amazon, Investment, E-commerce