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With Jeff Bezos stepping down as CEO of Amazon.com, let’s reflect on the performance of the company under his leadership. Although he’s only a tick or two away from being the richest person in the world, during his tenure Amazon’s stock results lag far behind Monster Beverage, the energy drink maker.
Amazon’s stock market performance since its IPO
A $ 1,000 investment in Amazon stock when it went public on May 15, 1997, would be worth $ 2.2 million today. A $ 1,000 investment in Hansen’s Natural Corp – what was called Monster in 1997 – would be worth $ 3.9 million. A distant third is Apple, where that $ 1,000 in stock is now worth $ 1.1 million. These calculations include the reinvestment of dividends, although Monster and Amazon did not issue any during the period.
Amazon’s Changing Business Model
Amazon’s business has grown significantly since its inception in the market. At the time, it had reported annual sales of $ 15.7 million and Dow Jones Newswires described the company as “an upstart who made a flashy business selling books on the Internet.” In 2020, the company achieved $ 386 billion in revenue while operating its own multinational parcel delivery fleet, offering satellite monitoring services, and operating a streaming entertainment platform.
Monster Beverage’s Outrageous Profits
Hansen’s profit of $ 1.3 million on sales of $ 43 million in 1997 came mainly from soft drinks made from fruit juices without additives like caffeine or artificial colors. The years that followed saw it sell its non-energy drink divisions to Coca-Cola, change its name to Monster, and increase its profits to $ 1.2 billion combined on $ 4.4 billion in sales. during his last four quarters.
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