The History Of Amazon’s Stock and Amazon share price and the unique Coronavirus impact – In 1997, when Amazon first made their public offer (IPO), the company was only three years old and had no clear path to profitability.
Amazon was faced with a growing list of competitors, including Simon & Schuster and Barnes & Noble, who already sold books online and were really growing fast in the business.
Amazon shares IPO was on May 15, 1997 and was trading on the NASDAQ under the symbol of AMZN at a price of $ 18 per share. On IPO day, the stock price rose and closed at $ 23.50, bringing the company to a value of $ 560 million. With the split-adjusted close of $ 1.96, the stock price has since multiplied nearly 500 times.
When it comes to Amazon’s stock split history, the first stock split took place on June 2, 1998. This was a 2-1 split. Amazon’s next stock split was a 3-1 split on January 5, 1999. There was another stock split for Amazon shares that year, as a 2-1 stock split on September 2.
Although Amazon is now a joke of a stock. It has a rather tumultuous history. Amazon shares first broke $ 100 dollars in 1999, but after the tech bubble burst, the stock price didn’t triple again until ten years later. The stock fell 94% after its all-time high of $ 106.69 in December 1999, and plummeted in January 2001 to a low of $ 5.97.
Despite the recovery in the coming years and returning to a stock price of over $ 50, the stock plunged back to $ 26.07 in 2006. Despite a positive growth period, Amazon stocks experienced another blip during the 2008 crash, with they lost 60% year on year.
In 2016, the share price fell significantly again during the year due to disappointing earnings results. But every time Amazon bounced back, it hit all-time highs and continues its seemingly unstoppable surge.
On the 20th anniversary of the IPO, Amazon’s stock closed at $ 961.35, making the company a market value of approximately $ 466.2 billion. That is 490 times the price adjusted for shares.
Few investors could have predicted that it would gain about 50,000% in the two decades after the IPO. Just one thousand dollars invested at the closing price on Amazon’s IPO day would be worth nearly half a million dollars 20 years later.
While most businesses have been hit hard by the #coronavirus pandemic, Amazon’s share price surged by more than a third while CEO Jeff Bezos reinforced his position as the world’s richest person with a fortune of $138bn. https://t.co/vhPU0v2qqS
— SumOfUs (@SumOfUs) April 16, 2020
Of course Jeff Bezos is an investor who has been there for the entire history of Amazon stock which has set him on the road to become the world’s richest person. For the 2016 context, Bezos sold a total of $ 1.4 billion in Amazon shares.
But in 2017, as Amazon shares have spiked in the past year, Amazon’s CEO sold about $ 941 million worth of Amazon shares over a three-day period, as part of a planned sale. That kind of return escaped many analysts and even investors as experienced as Warren Buffett, the CEO of Berkshire Hathaway, who recently said he was “too stupid to realize what would happen”.
Effect of Amazon share price during coronavirus pandemic
The disruption to society and business as a result of the coronavirus pandemic has affected the stock market, but Amazon (AMZN) is uniquely positioned to perform well despite the changes in consumer behavior. Amazon shares are currently trading above the buy range.
The ecommerce giant reported first-quarter earnings on April 30 with mixed results. Revenue of $ 75.5 billion exceeded expectations, but the adjusted earnings missed much, causing Amazon shares to fall the next day. It reported a loss of $ 5.01 per share versus estimates of $ 6.34.
Still, Wall Street analysts focused on the positives in the report and raised their price targets in response.
The coronavirus crisis has resulted in a majority of Americans remaining safely at home and working there. As a result, consumers have increasingly focused on buying goods online, with Amazon being the dominant leader. By The Markets Insider.
Amazon Stock rises from an annual low
Amazon stock has risen 46% since hitting an annual low on March 16. The relative strength of the share reached a new high on March 23, showing how its performance has developed compared to the S&P 500. While the RS line has been pulling recently, some suggest that the stock may still be a leader.
Before the Covid-19 breakout, Amazon stock was stuck in a long phase of only moving sideways as investors seemed to be cautious about the large investments and the market pressure that the e-commerce giant was facing . Those who hold Amazon stocks were concerned about the possible negative impact of investments on infrastructure, competitive pressure on cloud services, increased spending on the one-day mail order program, and the potential impact on profits.
But the corona virus changed everything. The resulting tidal wave of new demand for household and home office supplies has led to bottlenecks and bottlenecks.
Hiring workers to meet increasing demand
To meet growing demand, Amazon hired an additional 100,000 employees and added another 75,000. The company also increased the investments it made to increase employee salaries from $ 350 million to over $ 500 million.
These additional hires and corona virus purchases explain how Amazon’s revenue grew 26% in the first quarter and exceeded estimates. That was the best growth in six quarters.
Few companies have created such long and protracted opportunities as Amazon. The $ 13.4 billion acquisition of the Whole Foods Market in 2017 was paid to deliver food and groceries. Amazon continues to invest heavily in cloud computing, transportation, video content and online video services, and competes with Netflix (NFLX) and others. With the Echo product line, the company is a leader in the market for intelligent loudspeakers.
Amazon was founded in 1994 as a simple online bookstore and never seemed to rest on its laurels. Eventually it became the leading provider of e-commerce services. The company is known for taking bold steps and burdening the competition.
An example of this is Amazon’s announcement that it will offer its best customers free shipping within a day. Amazon, which announced its one-day shipping plan last year, initially committed to spending $ 800 million on the program. Management later announced that an additional $ 1.5 billion would be spent.
Amazon HQ2 is a proposed corporate headquarters for technology giant Amazon in Crystal City, Arlington, Virginia. HQ2 was announced in September 2017, and is an extension of established Seattle, Washington headquarters.
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REF : Yahoo Finance