If You'd Bought 1 Share of Amazon at Its IPO, Here's How Many Shares You Would Own Now

Amazon (AMZN) has created many millionaires since it went public almost three decades ago. If you were fortunate enough to buy a share during its initial public offering (IPO), you would own a significantly larger number of shares today, and your wealth would have also increased greatly. The most recent stock split occurred in 2022, contributing to this transformation.

Understanding Stock Splits

Since its debut in 1997, Amazon has executed four stock splits. A stock split increases the number of shares available while reducing the price per share. This strategy is typically adopted when a company experiences rapid growth and a rising stock price. The initial splits occurred relatively soon after the IPO: 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 long pause of 23 years, the company finally split its stock again in 2022, this time in a 20-for-1 format.

When Amazon first offered shares, the price was set at $18 per share. Adjusted for splits, that initial price translates to approximately $0.075 for each share today. If you had acquired just one share at the IPO, you would now possess a total of 240 shares. At current market value, those shares would be worth around $47,280.

However, if you had invested $100 on the first trading day, your shares would now exceed $200,000 in worth, which, while not enough to retire on, is still a substantial financial gain.

Long-Term Investment Strategy

Investing in stocks has its ups and downs, and Amazon has experienced its share of challenges. Nevertheless, holding onto stocks of companies you believe in can yield significant wealth over time. Although Amazon's stock may not deliver the explosive growth it did during its early days, it presents a more stable investment now compared to the risks faced at the IPO.

Note: John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is on the board of directors for The Motley Fool. Jennifer Saibil has no interest in any of the mentioned stocks. The Motley Fool has investment positions in and endorses Amazon.

Amazon, Investment, Stocks