Amazon’s initial public offering (IPO) in 1997 has produced remarkable returns. An investment of $500 at that time would now be worth approximately $1.5 million.
Amazon’s IPO Details and Stock Performance
Amazon went public on May 15, 1997, with an IPO price of $18 per share. After four stock splits, the adjusted price is $0.075 per share today, converting every original share into 240 shares.
As of December 29, 2025, Amazon’s stock closed at $232.07 per share. From the split-adjusted price, this equates to a staggering return of 301,607% for early investors.
Amazon’s Growth Strategy and Market Position
Initially, Amazon was a small online bookstore, generating about $16 million in its early years as of 1996. Its significant growth came as it built a robust logistics network and expanded into various services, including media streaming and cloud computing.
Today, Amazon ranks as the fifth-largest company globally, underscoring its success in evolving beyond its original business model.
Comparison With S&P 500 Returns
On the day of Amazon’s IPO, the S&P 500 closed at $836.04. As of December 29, 2025, it reached $6,905.74, yielding a 700% return over the same period. This is considerably lower when compared to Amazon’s phenomenal returns.
Amazon’s investment gains far exceed those of S&P 500 investors, illustrating the exceptional value of early investment in the company.
