It's primetime at Amazon.com ... shares hit $1000

Alain Brian
Mai 31, 2017

Amazon actually offered a list of its shares in May 1997 for just $18 per share.

Amazon, the e-commerce giant that changed how people shop for books, toilet paper and TVs, hit a new milestone Tuesday, May 30: Its stock topped $1,000 for the first time. As recently as 2014, Amazon shares were in a relative lull, held back by widespread doubts about the company's ability to turn a buck as it focused on growing sales.

Google's Alphabet is also within a few bucks of $1,000, the latest sign that big, dominant tech companies are driving the USA market higher.

The broad-based S&P 500 shed 0.1 percent to 2,414.03, retreating from Friday's record, while the tech-rich Nasdaq Composite Index added 0.1 percent to 6,216.27, rising a bit from Friday's record.

The surge above $1,000 a share also raises questions about whether Amazon intends to pursue a stock split.

To be sure, there's nothing intrinsically magical about a $1,000 share price, even though it's rare. Ah, to have bought Amazon shares in '97 when the company first went public. Amazon's stocks have risen primarily as a result of its core retail business.

Another company with a similar philosophy is Alphabet Inc., the parent company of Google.

Amazon trails Priceline when it comes to stock prices, showing a high of $1,001.20 compared to the latter's $1,850.50.

And on that basis, Amazon is pretty expensive. Amazon's success can be credited largely to business expansions with implementation of new AI technologies, increasing investments in entertainment, and success with cloud computing. Had it not split, the original stock would now be worth $12,000. Most professional investors don't look at just the stock price.

Amazon is ahead of Alphabet's class.

And Apple, for example, in June 2014, did a 7-for-1 stock split which increased its pool of shares by seven times and reduced each share's price from roughly $645 to $92. At Amazon's annual meeting a week ago, Chief Executive Jeff Bezos said the matter was under consideration.

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