With Jeff Bezos stepping down as CEO of Amazon.com, let’s reflect on the company’s performance under his management. Although he is just a point or two from becoming the richest person in the world, during his tenure the results of Amazon’s stock market came in a distant second, behind Monster Beverage, a maker of energy drinks.
Performance of Amazon shares since the IPO
A $ 1,000 investment in Amazon shares on its May 15, 1997 IPO would be worth $ 2.2 million today. A $ 1,000 investment in Hansen’s Natural Corp – as Monster was called in 1997 – would be worth $ 3.9 million. A distant third place is Apple, where that $ 1,000 in shares would be worth $ 1.1 million today. These calculations include the reinvestment of dividends, although Monster and Amazon did not issue any during the period.
Change in Amazon’s business model
Amazon’s business has expanded significantly since its market debut. At the time, she reported $ 15.7 million in annual sales and Dow Jones Newswires described the company as “a new company that made a flashy business selling books over the Internet”. In 2020, the company earned $ 386 billion in sales while operating its own multinational parcel delivery fleet, offering satellite control services and operating an entertainment streaming platform.
Monster Beverage’s huge profits
Hansen’s $ 1.3 million profit on sales of $ 43 million in 1997 came mainly from carbonated fruit juices made without additives like caffeine or artificial colors. The intervening years led her to sell the non-energy drink divisions to Coca-Cola, change her name to Monster and increase her profit to a cumulative $ 1.2 billion by $ 4.4 billion in sales in her four most recently reported quarters.