Amazon (AMZN 0.08%) started out as an online bookseller. But these days, it has evolved into a thriving tech titan with a presence in many industries. The business is massive, sporting a market cap of $2.4 trillion.
The stock's long-term returns are magnificent. But they're not as impressive on a shorter time frame. If you bought $100 worth of Amazon shares five years ago, here's how much you'd have today.
Image source: Amazon.
Amazon lags the S&P 500
In the past five years, this stock has generated a return of only 43% (as of Nov. 19). This means that a $100 investment would be worth $143 today.
This gain pales in comparison to the 100% total return of the S&P 500 index. It's worth pointing out, though, that Amazon shares skyrocketed 77% in the 12 months before (from mid-November 2019 to mid-November 2020), as it benefited from a quick recovery following the COVID-19 dip.
Nonetheless, it might be surprising to see the stock underperforming the broader index on a trailing-five-year basis.
NASDAQ: AMZN
Key Data Points
Should you buy Amazon stock?
Amazon looks to continue its winning ways. Its revenue keeps growing, with net income rising at a much faster clip in the third quarter (ended Sept. 30). It's a leader when it comes to artificial intelligence. And the business possesses numerous durable competitive advantages that support its dominant position.
Investors should consider buying the stock right now.
