Yahoo Finance How Much Will Your Amazon Shares Be Worth in 5 Years? Stock Experts Project
Amazon (Nasdsq: AMZN) stock has long been a darling of tech sector investors. Even when the share price dropped by almost half in 2022, investors still buy it. Right now, it sits at number 5 on the market cap leaderboard, with a total capitalization of $1.902T.
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If you already own Amazon or are thinking of buying, the obvious question is, what lies ahead? How much will your Amazon shares be worth in 5 years? Here’s what you need to know.
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Amazon’s Price History
Like many tech companies, Amazon’s rise has not been a straight line. The company sort of bumped along from its IPO in 1997 through 2015. At that point, the stock took off, going from a split-adjusted price of $15.63 in January 2015 to $159.03 in August 2020, as Amazon became the supplier of choice for just about everything during the height of the pandemic.
As pandemic restrictions began to lift and in-person shopping again became possible, Amazon stock took a deep dive, to $85.46 in January 2023. But the investment bounced back and, in recent weeks, has eclipsed its previous high to close at $182.81 on June 18, 2024.
Amazon’s Stock Splits
Amazon stock has split four times in its lifetime. In 1998, the stock split 2-for-1, so the number of outstanding shares doubled, and this price was cut in half. In January 1999, it split again, this time 3-for-1. There was a second split in September 1999, also 2-for-1. In 2022, Amazon stock split again, this time 20-for-1. If you purchased one share of Amazon before June 2, 1998, you would have 240 shares today.
Amazon stock sold June 1, 1998, at $85.68 per share. The stock closed at $182.81 on June 18, 2024. So, that one share you bought at $85.68 26 years ago would now be 240 shares at $182.81, or a total of $43,874.40.
The Future of Amazon
Amazon’s average one-year price target is $224.17, but at least one analyst predicts it will go to $500.00 per share in just 12 months. Of the 47 analysts who recommended Amazon in June, 44 rated it a buy or a strong buy.
Forecasters predict that Amazon will reach $200 per share a year from now and will continue to rise to $250 per share at the end of 2026. In 2027, the prediction is for a price of $300, and $250 by the end of 2028.
Much of Amazon’s future success, like that of many tech companies, will depend on the trajectory of AI. Amazon’s Web Services (AWS) continues to benefit from AI development and adoption, so if the potential of AI is realized in the coming years, Amazon could see a big benefit. That said, there are other tech companies that are also positioned to capitalize on this trend.
As with any investment, it’s impossible to see into the future. However, the experts think that Amazon’s stock will continue to climb.
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