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If You Invested $10,000 in Amazon in January, This Is How Much You'd Have Now

By Rich Smith – Aug 7, 2020 at 2:00PM

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Shoppers flocked to this year. Investors did, too.

America's battle with COVID-19 has done a real number on the economy, subtracting 32.9% from gross domestic product in the second quarter and costing as many as 40 million workers their jobs -- but not everyone is suffering equally.

Because of nearly nationwide stay-at-home orders and a trend toward increased social distancing that had many Americans choosing not to leave their homes even for groceries, e-commerce companies such as (AMZN 1.26%) were able to step up and provide essential services in such areas as grocery delivery and internet shopping -- and to grow their businesses nicely as a result.

Stock up arrow rising over 2020

Image source: Getty Images.

In the first quarter of 2020 alone, which caught only the tail end of the pandemic, Amazon grew its sales more than 26% year over year, accelerating from a 21% rate in the fourth quarter of 2019. In Q2, by which time the shopping trends under COVID-19 had become more clearly established, Amazon's sales surged 40% -- and profits just about doubled to $5.2 billion.

Such growth wasn't lost on investors. Amazon stock that entered this year at $2,040 and change closed at a mind-boggling $3,225 share price on Thursday afternoon, a gain of 58% since 2020 began. An investor who bought just $10,000 worth of Amazon stock in January (roughly five shares, and maybe a bit of a fractional share besides) would now be sitting on a $5,800 profit -- and would own Amazon stock worth $15,800.

Not bad for less than eight months of work.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool has a disclosure policy.

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