20 Most Profitable Stocks of the Last 20 Years

5. Amazon.com, Inc. (NASDAQ:AMZN)

20-Year Annualized Return: 23.84% 

Amazon.com, Inc. (NASDAQ:AMZN) has emerged as one of the most profitable stocks of the last 20 years, transforming from an online bookstore to a global e-commerce and technology giant. The company operates in various sectors, including e-commerce, cloud computing, artificial intelligence, and digital streaming. An investment of $1,000 in Amazon stock 20 years ago would be worth approximately $90,500 today, representing an annualized return of 24%.

Amazon.com, Inc. (NASDAQ:AMZN) achieved a 13% increase in net sales to $143.3 billion in Q1 2024 compared to $127.4 billion in Q1 2023. Key growth drivers included AWS, which saw a 17% revenue increase to $25.04 billion driven by expanding cloud adoption and AI capabilities. Advertising revenue surged 24% to $11.8 billion, bolstered by sponsored ads and integration into Prime Video. Retail net sales grew 13%, benefiting from enhanced delivery speeds and product variety. The company’s profitability also soared, with net income reaching $10.4 billion in Q1 2024, up from $3.2 billion which was fueled by effective cost management and growth in high-margin segments like AWS and advertising.

AWS achieved a $100 billion annual revenue run rate, underscoring its dominance in cloud computing. Amazon anticipates Q2 2024 operating income between $10 billion and $14 billion, reflecting continued investment in AI infrastructure to sustain customer demand and drive long-term expansion.

In Q1 2024, there were around 302 hedge fund holders in the company, up from 293 in the previous quarter. Fisher Asset Management held the largest position in the company, with around 42,566,342 worth $7,678,116,830.

Amazon stock is rated “Strong Buy” by 44 analysts. Of the 43 analysts providing 12-month price forecasts, the average target is $208.98, ranging from $140 to $245 which indicates a potential increase of 5.76% from the current stock price of $197.59.