Amazon’s stock price crosses $1,000 amid Wall Street love fest

The stock-price milestone marks a staggering 66,567 percent rise in the value of an Amazon share since its 1997 initial public offering — and a 40 percent surge from last year.

Amazon.com shares hit $1,000 in early Tuesday trading — a numeric milestone that signals how Wall Street has embraced the story of an e-commerce giant that, not so long ago, was considered hard to fathom.

The ascension to four figures caps a somewhat jittery but ultimately triumphant two decade run-up that started when the company went public 20 years ago.

When accounting for past splits, it marks a staggering 66,567 percent rise in the value of an Amazon share since the 1997 initial public offering — and a 40 percent surge from last year.

Amazon’s stock price surged past $1,000 in the first-half hour of trading Tuesday. It slipped quickly from that milestone, and though it bounced back near $1,000 at midday, the stock closed the session at $996.70, up about 0.1 percent

Most Read Stories

Sale! Get 90% off digital access.

To be sure, there’s nothing intrinsically magical about a $1,000 share price, even though it’s rare (according to The Associated Press, only four other U.S.-listed companies trade above that mark: Priceline, NVR, Seaboard and Berkshire Hathaway.) It’s due, in part, to Amazon’s reluctance to split its stock in recent years. But the number has other connotations.

“Technically, it’s just four digits instead of three,” says Colin Sebastian, an analyst with R.W. Baird. “Symbolically, $1,000 is a demonstration of what Amazon has achieved over the last decade.”

That’s especially true for a company that some industry watchers doubted would make it into the mid-2000s. As recently as 2014, Amazon shares were in a relative lull, held back by widespread doubts about the company’s ability to turn a buck as it focused on growing sales.

“And here we are, as perhaps one of the most dominant retail and tech companies on…

Continue reading from the original source…

Leave a Reply

Your email address will not be published. Required fields are marked *