Twenty years later, that small startup – called Amazon – which went public in 1997, is worth at least 460 billion dollars.
On May 15, 1997, a seemingly loss-making online bookstore launched its public offering on the Nasdaq with an IPO that was valued at about $ 438 million. Twenty years later, that small startup – called Amazon – is worth at least 460 billion dollars.
To achieve this success, the Seattle giant has systematically employed almost all the money it continues to generate in huge new areas of investment such as Amazon Prime, Amazon Web Services and, more recently, the Alexa platform. The company of Jeff Bezos has penetrated the industry after industry – at a pace perhaps unmatched in modern history. On the occasion of the twentieth anniversary of the company's IPO, five charts were presented that show the rise of Amazon.com's dominance in the over the past two decades.
1. For investors, this is perhaps the only necessary chart. The price of Amazon shares, as of last Friday, was set at $ 961 per share or more than 600 times higher than the day of its IPO after accounting for the divisions of shares.
2. Over the past two years, Amazon has had a point of inflection, where the increasing dominance of Prime and the success of AWS have pushed its market value to rise. Amazon took 18 years since the launch of the public offer to reach the roof of Walmart, but it took two years to double it.
3. One of the most relevant metrics for technological investors in the public market is revenue growth. And Amazon continues to grow. All the while, he made sure not to lose too much money so that he could consume the market share of those competitors more focused on profits than on growth.
4. But maybe not one of the main business objectives to make a profit? Not for Amazon, or at least, not in the traditional sense. Jeff Bezos knows that the operating cash flow gives the company the money it needs to invest in everything it places and keeps the company ahead of its competitors.
5. And the efforts have been well rewarded. Amazon has become synonymous with e-commerce, and numbers show it more and more. the leading Internet retailer in the United States, and today owns 33% of the market, according to market research firm Euromonitor International. Analysts estimate that the share could increase to 50% by 2021.