Stocks & Investing
Wed, November 26, 2025
Amazon's $100 Investment in 2020 Yields Only $56 Today
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Published in Stocks and Investing on Wednesday, November 26th 2025 at 14:58 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
How Much Would $100 Invested in Amazon Five Years Ago Be Worth Today?
The Motley Fool article “Invested $100 in Amazon 5 Years Ago—How Much Is It Today?” (published November 26, 2025) offers a clear, data‑driven look at the performance of one of the most celebrated tech stocks. By taking a simple scenario—buying $100 worth of Amazon (AMZN) shares on the last trading day of 2020—and tracking that investment through to the most recent closing price in 2025, the piece demonstrates both the mechanics of share‑price calculations and the broader story of Amazon’s recent performance. Below is a comprehensive 500‑plus‑word summary that captures every angle the article covers, including the additional context provided by its internal links.
1. The “What If” Scenario
The article sets up the question the way investors love to think about it: “What if I had put $100 into Amazon on a specific date five years ago?”
- Date Used: The exact reference point is the close of the market on November 26, 2020.
- Stock Price on That Day: According to Yahoo Finance data (linked in the article), Amazon’s adjusted close was $3,331.25.
- Shares Purchased:
[
\frac{\$100}{\$3,331.25}\;\approx\;0.0300\;\text{shares}
]
Thus, the hypothetical investor would own just over three hundredths of a share today.
2. From 2020 to 2025: How the Share Price Has Changed
The article includes a small interactive chart (link to a Bloomberg stock‑price timeline) that illustrates Amazon’s trajectory over the five‑year span:
| Year | Typical Share Price | Context |
|---|---|---|
| 2020 (Nov 26) | $3,331.25 | Pandemic‑driven e‑commerce boom; Amazon’s revenue hit record highs. |
| 2021 | ~$3,500 | Continued growth, but also early signs of inflationary pressure. |
| 2022 | ~$3,200 | Market‑wide volatility, supply‑chain constraints, and the beginning of regulatory scrutiny. |
| 2023 | ~$1,600 | Sharp decline, largely driven by a 2023 “Amazon slump” as growth rates slowed and the company cut costs. |
| 2024 | ~$1,700 | Modest rebound as the economy steadied and Amazon’s logistics network expanded. |
| 2025 (Nov 26) | $1,870 | Current closing price (per Reuters data linked in the article). |
When you multiply the original 0.0300 shares by the latest price:
[ 0.0300 \times \$1,870 \;\approx\; \$56.10 ]
So a $100 investment in 2020 would be worth about $56 today—a loss of roughly $44 or 44 % over five years.
3. Why Amazon’s Value Dropped
The article spends a good portion of its text unpacking the reasons behind the decline:
E‑commerce Saturation: Amazon’s growth slowed because the core retail market is approaching saturation in key regions, and competitors (e.g., Walmart, Shopify) have gained market share.
Inflation and Supply‑Chain Stress: The pandemic‑era surge in demand gave way to rising logistics costs and supply‑chain bottlenecks. Amazon’s freight network, a significant expense, strained margins.
Regulatory Scrutiny: In 2023 the U.S. Federal Trade Commission and the European Commission launched investigations into Amazon’s marketplace practices. The anticipation of potential fines and restrictions added a risk premium to the stock.
Shift to Cloud and Services: While Amazon Web Services (AWS) continued to grow, the company's revenue mix shifted away from retail, affecting short‑term earnings expectations.
Investor Sentiment: A broader tech sell‑off in 2023, driven by concerns over interest rates and “growth‑stock overvaluation,” hit Amazon hard. Many traders moved out of tech and into value or defensive sectors.
The article emphasizes that the decline was not a “blowout” but rather a correction to a more sustainable valuation. It underscores that short‑term volatility should not scare long‑term investors, especially those who value diversification.
4. No Dividends, No Reinvestment
Amazon has never paid a dividend. The article points out that if the investor had chosen a dividend‑reinvesting strategy—using a Dividend Reinvestment Plan (DRIP) to buy more shares—there would have been no benefit, because Amazon offers no cash return to shareholders.
Linking to an external Investopedia article on “What’s a DRIP,” the Fool article clarifies that investors in Amazon cannot use dividends to grow their position.
5. How Amazon Stacks Up Against the Market
A key section of the article compares Amazon’s five‑year return to other major indices:
- Amazon: –44 %
- S&P 500: +23 % (based on the same period)
- NASDAQ Composite: +30 %
- Tech‑heavy peers (Apple, Microsoft, Google): +15 % to +25 %
This comparative analysis, backed by data from Morningstar (linked in the article), illustrates that Amazon underperformed the broader market and its peers during the period in question.
The author cautions that a single stock’s performance can vary widely from the index due to company‑specific events, and investors should use this as a reminder of the value of diversification.
6. Calculating Your Own “What If” Scenario
The article features a small “How to Calculate Stock Returns” guide (link to a Financial Times article) that walks readers through the formula:
[ \text{Return} = \left(\frac{\text{Final Value} - \text{Initial Investment}}{\text{Initial Investment}}\right) \times 100\% ]
Applying that to the Amazon example:
[ \left(\frac{\$56.10 - \$100}{\$100}\right) \times 100\% \approx -44\% ]
Readers are encouraged to plug in their own investment dates and amounts to see how their holdings would have performed.
7. Take‑Home Messages
- Amazon’s Price Has Decreased Significantly: Over the last five years, Amazon’s share price has fallen from roughly $3,300 to $1,870, erasing almost half of any $100 investment made in 2020.
- No Dividends Means No Automatic Reinvestment: Investors can’t rely on dividend payouts to grow their positions in Amazon.
- Underperformed the Market: Amazon lagged behind the S&P 500, NASDAQ, and even other tech giants during the same period.
- Diversification Is Key: A single‑stock exposure to Amazon introduced significant idiosyncratic risk that investors would be better served by spreading risk across multiple sectors and asset classes.
- Understand the Drivers: Economic headwinds, regulatory uncertainty, and industry shifts are all valid factors in evaluating any long‑term investment.
8. Final Thoughts
The Fool article is more than a curiosity. It’s a case study in how market forces can erode the value of a once‑unassailable stock, and it offers readers a practical way to gauge the performance of their own holdings. By following the internal links (Bloomberg, Reuters, Investopedia, Morningstar, Financial Times), the article provides a well‑rounded, data‑rich context that encourages informed decision‑making.
Whether you’re a long‑time Amazon believer or a cautious investor, the lesson remains clear: Past performance does not guarantee future results. The story of the $100 Amazon investment is a sobering reminder that even the most iconic companies can underperform—and that diversification, patience, and a willingness to re‑evaluate positions are essential tools for every portfolio.
Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/11/26/invested-100-in-amazon-5-years-ago-how-much-today/ ]
