Amazon’s IPO Journey: The Value of $100 in Shares Today

Since its initial public offering (IPO) in 1997, Amazon has transformed from a small online bookstore into a global technological giant. This article delves into the history of Amazon’s IPO, the worth of an initial investment of $100 in Amazon shares, and the company’s current market status.

Amazon’s IPO Price and Initial Investment

On May 15, 1997, Amazon conducted its IPO at an initial public offering (IPO) price of $18 per share. At the time, an initial investment of $100 would have enabled one to purchase approximately 5.55 shares (rounding to two decimal places), given the IPO price of $18 per share. A decade later, Amazon’s stock price had significantly increased, and as of August 2023, the stock price was approximately $140 per share.

Calculating Today's Value

To calculate the current value of 100 shares of Amazon, we can use the latest stock price. With the current stock price at approximately $140, here is the calculation:

Value of 100 shares 100 shares x $140 / share $14,000

Therefore, 100 shares of Amazon would be worth about $14,000 today, based on the current stock price.

Investment Returns on $100 Investment

For those who held onto their shares from the IPO, here are the returns on an initial investment of $100:

Initial Investment of $100 on May 15, 1997

If you had invested $100 in Amazon stock (AMZN) on its initial public offering (IPO) and held the shares through all stock splits, your investment would be worth approximately $1,636,364 as of December 28, 2022, based on a closing price of $81.82. This represents a staggering gain of $1,636,264 (after rounding), demonstrating the exponential growth of Amazon’s stock.

Considering Stock Splits and Current Price

Adjusted for all stock splits, the IPO price would now be equivalent to 0.075 per share. Since the current stock price as of late December 2022 is around $85 per share, 100 dollars would have allowed you to buy the equivalent of approximately 1,333 shares. The value of 1,333 shares at $85 each would total $113,305. Technically, you could have bought only 5 shares with your $100, but each of those shares would now be split into 240 shares, equating to approximately 1,200 shares with a current valuation of $113,305.

Current Market Status of Amazon

Amazon is listed on the NASDAQ and engages in retail sales of consumer products and subscriptions both in North America and internationally. It operates through three main segments:

North America International Amazon Web Services (AWS)

The company offers a wide range of products and services, including:

Consumer electronics like Kindles, Fire TVs, and Echo devices Publications and media content through Kindle Direct Publishing and content creation services Marketing and selling programs for third-party sellers to reach Amazon’s global customer base Enterprise services for businesses to deploy, manage, and analyze data using AWS Digital content subscriptions and advertising

Additionally, Amazon’s membership program, Amazon Prime, now retails for $277.74 per year, providing its members with free shipping, streaming access, and other perks.

Founded in 1994 and headquartered in Seattle, Washington, Amazon continues to be a significant player in both retail and technology sectors. Its constant evolution and robust business strategies continue to drive its market valuation.