Let Jeff Bezos retire as CEO of Amazon.com over the performance of the company under his management. Although it’s only a stock market or two to be the richest person in the world, Amazon’s stock market results come within a distant second to Monster Beverage, the maker of energy drinks.
Amazon’s stock performance since IPO
An investment of $ 1,000 in Amazon’s share during the May 15, 1997 IPO would be worth $ 2.2 million. A $ 1,000 investment in Hansen’s Natural Corp. – named Monster in 1997 – would be worth $ 3.9 million. A far third is Apple, where the $ 1,000 shares today would be worth $ 1.1 million. These calculations include the reinvestment of dividends, although Monster and Amazon did not issue during the period.
Amazon’s changing business model
Amazon’s business has expanded significantly since its market debut. At the time, it reported $ 15.7 million in annual sales, and Dow Jones Newswires described the company as “a startup that made a flashy business by selling books over the Internet.” In 2020, the company achieved $ 386 billion in sales while operating its own multi-national package delivery fleet, offering satellite control services and managing a streaming entertainment platform.
Monster Beverage’s Excessive Profits
Hansen’s $ 1.3 million profit on sales of $ 43 million in 1997 came primarily from carbonated fruit juice drinks made without additives such as caffeine or artificial color. The interim years led to him selling non-energy beverage divisions to Coca-Cola, changing his name to Monster and turning his profit to a cumulative $ 1.2 billion on $ 4.4 billion in sales in his four most recent quarters let grow.