This tech titan proves that patience is rewarded in the stock market.
Amazon (AMZN -1.34%) founder and former CEO Jeff Bezos built a culture for his business to always be obsessed with the customer. That overarching philosophy has worked wonders, as this has become one of the world’s most dominant companies with its hands in various industries.
Investors, at least those who have held on for a long time, should be very pleased. If you invested $10,000 in Amazon stock 10 years ago, here’s how much you’d have today.
New business lines pushing growth
Besides being a leader in online shopping, Amazon has spawned new lucrative operating segments. Digital advertising activities brought in annualized revenue of $63 billion in Q2 (ended June 30). Amazon Web Services is another exciting unit that drives impressive revenue and profit growth.
Amazon’s disruptive prowess, characterized by a history of penetrating new markets, has propelled the stock 785% higher in the past decade (as of Sept. 30). This huge gain would’ve turned a $10,000 starting investment into $88,500 today.
Is Amazon stock a buy?
Amazon stock is taking a breather, down 9% from its peak set in February. Investors should view the dip as an opportunity to buy shares in one of the best companies around. Don’t expect the same type of gain over the next 10 years. However, a combination of steady growth and a reasonable starting valuation can still lead to a winning outcome for patient investors.
Neil Patel 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.
