If you’d invested $100 in Amazon 5 years ago, here’s how much you’d have today

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Amazon (NASDAQ: AMZN) started out as an online bookseller. But these days, it has evolved into a thriving tech titan with a presence in many industries. The business is massive, sporting a market cap of $2.4 trillion.

The stock’s long-term returns are magnificent. But they’re not as impressive on a shorter time frame. If you bought $100 worth of Amazon shares five years ago, here’s how much you’d have today.

Amazon lags the S&P 500

In the past five years, this stock has generated a return of only 43% (as of Nov. 19). This means that a $100 investment would be worth $143 today.

This gain pales in comparison to the 100% total return of the S&P 500 index. It’s worth pointing out, though, that Amazon shares skyrocketed 77% in the 12 months before (from mid-November 2019 to mid-November 2020), as it benefited from a quick recovery following the COVID-19 dip.

Nonetheless, it might be surprising to see the stock underperforming the broader index on a trailing-five-year basis.

Should you buy Amazon stock?

Amazon looks to continue its winning ways. Its revenue keeps growing, with net income rising at a much faster clip in the third quarter (ended Sept. 30). It’s a leader when it comes to artificial intelligence. And the business possesses numerous durable competitive advantages that support its dominant position.

Investors should consider buying the stock right now.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post If you’d invested $100 in Amazon 5 years ago, here’s how much you’d have today appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Neil Patel has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.