Amazon's Ten-Year Growth Story Hides a Rougher Reality for Recent Buyers

Amazon's ten-year run has been remarkable, with patient investors turning $1,000 into $5,239. However, this success story masks a less impressive performance for recent buyers who have seen their shares fluctuate over the past five years.

The company's growth is largely attributed to its expansion into new areas, such as artificial intelligence and cloud computing through Amazon Web Services (AWS). In 2025, AWS revenue hit $42.2 billion, up 36.7% with a 39% operating margin.

AWS has become a significant profit driver for Amazon, but the company's focus on growth at any cost has come at the expense of shareholder returns. Despite its impressive revenue growth, Amazon has not paid dividends to its shareholders in the last decade.

The company's CEO, Andy Jassy, has emphasized the potential for AWS to reach $1 trillion in annual revenue and has invested heavily in data centers to support this goal. However, this strategy has put a strain on the company's free cash flow, which turned negative at -$7.6 billion.

For retirees seeking income from Amazon, selling shares would be necessary, locking in whatever price the market offers that month. Accumulators, on the other hand, can take advantage of compound growth as every dollar stays invested.