Was Amazon ever a penny stock?
Some companies, such as Amazon (AMZN) originated as penny stocks but later grew into sizable blue-chip companies.
(NASDAQ: AAPL). Apple wasn't always one of the largest tech companies in the world. In fact, hardly anyone knew about the company and its products for years. Back in the early 2000s, AAPL traded for under 80 cents per share — a legit penny stock.
Amazon (Nasdaq: AMZN)
Few people associate Amazon with penny stocks. However, Amazon itself was once traded at low prices. The company has split its stock three times since its IPO. After going public at $18 per share on May 15, 1997, the company split its stock…
Sure, some penny stocks turned out to be massive success stories, like Apple, Ford Motor, and Monster Beverage. Find a similar success story like those top penny stocks, and you stand to make a fortune.
Speculative stocks aren't for the faint of heart. However, it remains true that penny stocks do make investors rich. They remain one of the quickest ways to multiply an investor's capital. If you can get past limited disclosures and liquidity issues, real money can be made by investing in penny stocks.
At no point did Microsoft's stock actually trade for 10 cents a share. It debuted at $28 a share. The 10-cent price is merely a reflection of the company's nine stock splits, which mathematically affects past stock prices in relation to current stock prices.
That means investors holding one Amazon share received 19 additional shares. At a pre-split price of about $2,000, the operation brought Amazon stock down to about $124. Hopes were high that this move would spur investors to flock to the shares at a lower price point in the days following the split.
The all-time high Amazon stock closing price was 186.12 on July 08, 2021. The Amazon 52-week high stock price is 180.14, which is 3.5% above the current share price. The Amazon 52-week low stock price is 88.12, which is 49.4% below the current share price. The average Amazon stock price for the last 52 weeks is 133.29.
Based on 41 Wall Street analysts offering 12 month price targets for Amazon in the last 3 months. The average price target is $208.23 with a high forecast of $230.00 and a low forecast of $175.00. The average price target represents a 16.84% change from the last price of $178.22.
Asure (ASUR) Among high-potential penny stocks with tremendous potential, Asure Software (NASDAQ:ASUR) stands out after an amazing third quarter. The company's revenues increased by 34% in the last year to $29.3 million. This growth is the outcome of Asure's strategic mergers and effective business practices.
Can you become a millionaire from penny stocks?
Exposure to blue-chip stocks is essential, but not the formula to make millions. It's quality growth stocks and non-speculative penny stocks that can make millionaires by delivering multibagger returns. The focus of this column is on penny stocks that represent companies with a good business model.
Penny stocks are among the market's most dangerous stocks, so you may pay a much greater price than you first expect, including potentially losing all of your investment.
These stocks are not a way to get rich. They are more likely to send you to the poorhouse. Penny stocks are bad because many of the companies have unproven business models, they are illiquid, they are exposed to scammers, and they are very volatile.
In dollar terms, that $1,000 investment in 1986 would be worth a whopping $3.23 million today.
Buffett admits to making multiple mistakes on tech
He says the reason he didn't invest in Microsoft years ago was simply due to "stupidity." He gave a similar reason for why he didn't buy Amazon stock earlier, either, saying that he was "too dumb to realize" the opportunity and underestimated Jeff Bezos.
While day trading is neither illegal nor is it unethical, it can be highly risky. Most individual investors do not have the wealth, the time, or the temperament to make money and to sustain the devastating losses that day trading can bring.
Amazon shies off high after hitting $2,000 per share for the first time.
But one thing you won't get when you invest in Amazon is a stream of dividend payments. While many companies that issue stocks pay dividends on a regular basis (with some even steadily increasing their dividends through the years), Amazon doesn't pay dividends to shareholders.
Amazon Stock Prediction 2025
The Amazon stock prediction for 2025 is currently $ 223.66, assuming that Amazon shares will continue growing at the average yearly rate as they did in the last 10 years. This would represent a 28.45% increase in the AMZN stock price.
If you wonder which company has the highest share price in the world, here is the answer. Berkshire Hathaway, the conglomerate headed by legendary investor Warren Buffett, has the most expensive stock in the world, with shares trading at over $400,000 each.
Is AMZN a buy right now?
Amazon stock has received a consensus rating of buy. The average rating score is A1 and is based on 97 buy ratings, 3 hold ratings, and 0 sell ratings.
If Amazon maintains its current valuations, matches analysts' expectations, and grows its EPS at a CAGR of 20% from 2025 to 2030, its market cap would reach $5.5 trillion by the final year. If Apple does the same thing and grows its EPS at a CAGR of 10% from fiscal 2026 to fiscal 2030, it would be worth $5.2 trillion.
Amazon's (NASDAQ: AMZN) stock is up 66% over the last 12 months after a stellar growth year. Cost-cutting measures and investment in lucrative sectors like artificial intelligence (AI) have put the company on a promising trajectory that could offer major gains over the long term.
Notably, the same tech giants that led the 2023 market rally from the front have looked vulnerable so far in the year. However, while a section of the market believes that valuations of tech stocks leave little on the table for investors this year, many analysts view Amazon (AMZN) as a top buy for 2024.
The lowest closing price for Apple (AAPL) all-time was $0.04, on July 8, 1982. The latest price is $179.66.
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