The Impact of Jeff Bezos’ Divorce on Amazon Stock: A $1,000 Investment Breakdown
- Shams ul Zoha
- February 4, 2023
- 5:06 pm
WHAT YOU SHOULD KNOW
- Amazon’s stock price increased 16.8% despite Jeff Bezos divorce and CEO transition.
- Amazon shares hit an all-time high of $186.12 in 2021 during the CEO transition.
- The investment serves as a reminder to take profits on stocks with big returns before market corrections or issues.
Investing in Amazon.com, Inc. (AMZN) can be a great opportunity for long-term growth, especially for those who made an investment after Jeff Bezos, the founder of Amazon, got divorced in 2019. A $1,000 investment in AMZN stock on April 4, 2019, would have purchased 10.94 shares of Amazon, based on a split-adjusted price of $91.44. Today, that investment would be worth $1,168.28, based on the current stock price of $106.79.
This represents a return of 16.8%, which is not staggering but still shows that the company was able to move forward despite the divorce of its founder and the subsequent CEO transition.
In 2021, Amazon shares hit an all-time high of $186.12, which was around the time that Jeff Bezos stepped down from the CEO role. At that time, a $1,000 investment would have been worth $2,036.15, a 103.6% increase. This growth is significantly higher compared to the 43.5% increase of the SPDR S&P 500 ETF Trust, which tracks the S&P 500 index, considered a good market indicator.
The divorce of a leading management figure and a new CEO transition can sometimes be major events that spook investors and analysts. However, this hypothetical investment in Amazon after Jeff Bezos got divorced offers several lessons for investors.
It shows that sometimes these events can be non-factors in the long term. Secondly, it serves as a reminder that taking profits on stocks with big returns can be a good idea before market corrections or other issues can hurt stocks.
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