Tags: Amazon | Retail | 20 | years | listed | stock | price

FT: Amazon Marks 20 Years as 'Pre-Eminent Disrupter of Retail'

Image: FT: Amazon Marks 20 Years as 'Pre-Eminent Disrupter of Retail'
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By    |   Tuesday, 16 May 2017 02:40 PM

Talk about keeping a promise.

Amazon.com is celebrating 20 years as a publicly listed company.

And the online retail giant certainly has lived up to its vow before it offered stock to the public.

“Amazon.com intends to use technology to deliver an outstanding service offering and to achieve the significant economies inherent in the online store model,” the company said in its IPO paperwork, the Finanical Times reported.

 “It was novel at the time, now it is accepted wisdom,” Nicholas Colas, chief market strategist at Convergex, told the FT. “They ended up being the pre-eminent disrupter of retail.”

“Amazon shares, listed at $18 at the time, have produced a compound annual return of nearly 40 per cent since the initial public offering. That means, for example, that $100 invested in Amazon stock at the IPO would be nearly $64,000 today (the stock split three times, so one share at the IPO equals 12 shares now),” the FT reported.

“Up 63,990 percent since its IPO, Amazon ranks as the best-performing US-listed IPO since 1995, according to Dealogic. For context, Netflix is fourth and Yahoo is seventh and the total return on the S&P 500 in the same period is about 300 percent,” the FT said.

To put Amazon's power into perspective, it took the Seattle online retailer 18 years as a public company to catch Wal-Mart Stores in market value, but it took less than another two years for Amazon to be worth twice as much.

On the 20th anniversary of its IPO, Amazon’s market capitalization stands at $459 billion while retail rival Walmart’s is at about $228 billion, Recode reported.

Meanwhile, AFP reports that Wal-Mart, the 800-pound gorilla of retail, is running hard to catch up in an increasingly crucial segment where it is neither the biggest nor the best: e-commerce.

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Talk about keeping a promise.Amazon.com is celebrating 20 years as a publicly listed company.And the online retail giant certainly has lived up to its vow before it offered stock to the public.
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2017-40-16
Tuesday, 16 May 2017 02:40 PM
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