1 Stock That Turned $1,000 Into More Than $1 Million

Core Perspective - Long-term investment in high-quality businesses allows the power of compound growth to significantly enhance portfolio value, making it a more reliable strategy than market timing [1][2] Company Overview - Amazon has generated an extraordinary return of 217,000% since its IPO in May 1997, turning a $1,000 investment into nearly $2.2 million today [4] - The company began as an online bookstore in the mid-1990s, focusing on a low-risk product category with a vast selection [5] Business Evolution - Amazon has expanded its offerings to sell virtually anything, including a recent partnership to sell Hyundai vehicles through its e-commerce platform [6] - The introduction of fast, free shipping through the Prime membership program in 2005 has attracted over 200 million global members [7] Revenue Streams - Amazon Web Services (AWS) was launched in 2006, generating $108 billion in revenue and $40 billion in operating income in 2024, making it the largest cloud-computing provider [8] - The company has also become a significant player in digital advertising, earning $13.9 billion in ad revenue in Q1 2025 [9] Future Outlook - Amazon's market capitalization stands at $2.3 trillion with trailing-12-month revenue of $650 billion, indicating its colossal size and past success [10] - Revenue is projected to grow at a compound annual rate of 9.5% from 2024 to 2027, suggesting continued potential for growth [11] - Diluted earnings per share improved from $3.21 in 2021 to $5.53 in 2024, making the current valuation reasonable with a forward price-to-earnings ratio of 34.3 [12] Investment Consideration - While Amazon may not replicate past extraordinary returns, it remains a worthy candidate for long-term investment [13]