Investing $10,000 in Amazon.com (AMZN) stock two decades ago would gross you the current value today.

Investing $10,000 in Amazon.com (AMZN) stock two decades ago would gross you the current value today.

Investing in Amazon.com (AMZN) 20 years ago would have been a lucrative decision. A single $1,000 investment would be worth a staggering $118,332 today, thanks to an impressive average annual gain of approximately 27%. This is significantly higher than the S&P 500's average annual gain of 9.2%.

Amazon's shares have undergone a 20-for-1 split during the past 20 years, meaning that if 100 shares were bought 20 years ago, they would now be worth 2,000 shares. This translates to an investment of $10,000 in 2005 being worth a mind-boggling $1,183,328 today.

The current forward-looking price-to-earnings (P/E) ratio for Amazon.com stock is 35, which is below the five-year average of 47. This indicates that the stock may still be undervalued.

As of August 2025, Amazon's stock is priced around the mid-$200s to low $300s range. Analysts expect the stock to be around $252 to $310 in late 2025, with monthly average prices rising gradually. UBS recently increased its 12-month price target to $271 from $249, maintaining a "Buy" rating.

Amazon's growth is driven by several factors. The company is expanding its same-day delivery service to over 2,300 U.S. cities, adding thousands of grocery items, and partnering in government cloud deals worth up to $1 billion through 2028. Amazon is also heavily investing in AI and cloud infrastructure, with planned 2025 spending exceeding $100 billion.

Long-term price potential is promising. Forecasts from Traders Union project Amazon's stock price to rise to around $371.71 by the end of 2025, then jump to $1,899.11 by 2030, and $3,266.56 by 2034.

Positive earnings surprises and stronger-than-expected revenue growth, especially from AWS and advertising segments, contribute to bullish sentiment. Amazon Web Services' revenue rose by 17% in the last quarter, year over year.

In conclusion, Amazon's near-term stock price as of mid-2025 is forecasted in the $250–310 range, backed by strong earnings and strategic growth initiatives. Longer-term, analysts see substantial upside potential driven by AWS, AI innovation, and logistics expansion, with price targets reaching into the thousands over the next decade. It is still considered appealing to buy into Amazon.com stock now.

1. Considering Amazon's impressive history of growth and future projections, data-and-cloud-computing technology investments such as AWS are expected to contribute significantly to its stock price.
2. Technology advancements and strategic initiatives, such as expanding same-day delivery services and partnering in government cloud deals, indicate that Amazon's stock is likely to continue benefiting from positive earnings and revenue growth.
3. The finance sector has recognized the potential of Amazon's stock, with analysts like UBS increasing their 12-month price targets and maintaining "Buy" ratings.
4. In the realm of finance and investing, the stock market data shows that long-term investment in Amazon.com (AMZN) may offer lucrative returns, potentially reaching thousands of dollars over the next decade, as projected by some analysts.

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