You already know that Amazon (NASDAQ: AMZN) is one of the stock market's most rewarding tickers this century. Although shares stumbled a bit during the dot-com meltdown following its 1997 initial public offering (IPO), they're now up more than 220,000% from their IPO price.
But how many shares would you own today if you had purchased only one share then? After all, it's split several times since the company's May 1997 public offering.
Amazon's stock split (and price growth) history
Amazon stock has undergone four stock splits since its IPO, for the record. The first of these was a 2-for-1 split in June of 1998. The next one -- a 3-for-1 split -- took shape less than a year later. The stock split yet again on a 2-for-1 basis in the latter half of 1999.
Then, the company held off on stock splits for quite some time, choosing to let shares appreciate in step with Amazon's growth.
However, once its price moved and stayed well above $3,000 beginning in late 2020, the company couldn't hold out any longer. In an effort to make it more accessible to more investors, Amazon stock underwent a 20-for-1 split in June of 2022.
All told, one share of Amazon purchased right at its IPO would be 240 shares today. On a split-adjusted basis, its IPO price of $18.00 per share has been pared down to only $0.075. As of the most recent look, the stock's still trading at over $166 per share, for perspective.
Other young companies will do the same
Of course, few investors were wise enough to step into this then-risky e-commerce outfit right at its IPO and then stick with it this whole time.
A few folks have done so, however, testifying to the power of being patient with a position in a young company with lots of potential. There will be other Amazon-like growth companies in the future. You just need to identify them as early as possible.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
If You Bought 1 Share of Amazon at Its IPO, Here's How Many Shares You Would Own Now was originally published by The Motley Fool