Amazon Stock Sixfold Return Over Past Decade
Amazon's stock has soared nearly sixfold over the past decade, making it one of the most successful investments among the so-called Magnificent Seven stocks. A $10,000 investment in Amazon a decade ago would now be worth over $59,300, thanks to a 493% increase in its share price as of October 2.
The company's dominance in various sectors has driven its impressive growth. Amazon collected $201 billion in net sales in the second quarter of 2023, a staggering 560% increase compared to the same period in 2016. The company benefits from powerful secular trends, including its leadership in online shopping, digital advertising, and cloud computing through Amazon Web Services (AWS).
While Amazon's past performance is remarkable, investors should not expect a similar 493% return in the coming decade. However, the stock remains a compelling long-term investment due to its strong market positions and continued innovation.
The Motley Fool Stock Advisor team recently highlighted that Amazon was not among their top 10 stock picks for the coming years. They noted that other stocks, such as Netflix and Nvidia, which were previously recommended, have delivered exceptional returns.