Amazon Hits $1 Trillion

First, Apple made the $1 trillion market cap club. Now Amazon has joined.

Here’s a remarkable stat about Amazon. Since the IPO, the stock has gained 1%, on average, every 258 hours for 21 years. And what’s even more amazing is that that includes a 95% price crash.

Here’s an article I wrote on Amazon for their 21st birthday.

Amazon.com went public 20 years ago today. There was so much demand for Jeff Bezos’s “online bookstore,” as it was then referred to, that the underwriters raised the offering price twice. They settled on $18 per share.

There was some concern whether an online bookseller could truly compete with industry stalwarts such as Barnes & Noble and Borders. Would people really buy books on the Internet? The idea seemed farcical. But two decades later, Amazon has done pretty well for itself.

On Friday, the shares closed at $961.35. And that doesn’t include three stock splits totaling 12-for-1. In 1997 terms, one share of Amazon is currently worth $11,536.20.

In simpler terms, the stock has vaulted 640.9-fold in 20 years. If you had invested $16,000 in Mr. Bezos’s little project, you would now be sitting on a cool $10 million.

Posted by on September 4th, 2018 at 12:14 pm


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