Ever wonder how different your life could be if you had had the foresight (or the opportunity, depending on how old you are) to buy some Amazon shares back when it was known primarily as a bookseller? Maybe you have wondered: “What if I had invested in Netflix, right when it went public?” And think of all the Happy Meals you could buy if you had taken advantage of McDonald’s going public back in 1965.
IPOs can be a great way for you to invest in the stock market, as you are joining the beginning of an established company’s journey on a stock exchange. The criteria to hold an IPO varies from exchange to exchange, but minimum profits and market capitalisation, such as on the ASX, can make these companies attractive to investors. It is important to remember that while many companies have grown since their IPO, there are many others that have remained stagnant or lost share value. As with all investing, you should do your research to reduce the chance of losing money and only trade what you can afford to lose.
Setting aside inflation and dividends, we have calculated how much $1,000 worth of a company’s shares at IPO would be worth today. Some stocks have also split over the years, with some splitting twofold or even sixfold from their original number. Read on to learn more about how much your portfolio would be worth if you had gotten in on the ground floor with some of the largest companies in the world.
Note: all dollar amounts in this article are USD at stock value current to 25 March, 2021.
Back when it started, Amazon (AMZN) was an online marketplace for book lovers and operated out of founder Jeff Bezos’ garage. Now, Amazon is one of the biggest companies in the world, having expanded into a marketplace that sells just about everything, as well as providing cloud computing, streaming video and a whole host of other offerings. Since its IPO, Amazon’s stock has split three times, turning one share initially held into 12. Bezos’ shares in Amazon have helped him become the richest man in the world.
Amazon IPO date: May 15, 1997
Amazon IPO price: $18/share
Amazon stock splits: 2-1 (1998), 3-1 (1999), 2-1 (1999)
What if I had invested $1,000 after the Amazon IPO?: $2,058,047
With 2,058 times your initial investment, you’d have plenty to spend on the next Prime Day.
When a brand becomes a verb, you know it has done something right. Nobody looks up something on the Internet — they Google it. But this brand is far more than a simple search engine, branching out into advertising, as well as hardware and software, used by millions around the world. By the end of its IPO date, Google had sold 22.5 million shares and already jumped nearly 20% in value. A controversial stock split in 2014 saw investors receiving a non-voting Class C stock (GOOGL) for every owned Class A stock (GOOG). With a generally small difference between the two stock prices, both shares are currently going at roughly $2,100 per one. In 2015, Google changed its name to Alphabet and named Google as a subsidiary to reflect its expanding product offering — a change that had little impact on investors.
Google IPO date: August 19, 2004
Google IPO price: $85/share
Google stock splits: 2-1 (2014)
What if I had invested $1,000 after the Google IPO?: $47,972
No need to Google — anybody knows that rate of return is a fantastic result.
Long before millions of people around the world held one of its phones in their hands, Apple (AAPL) was a humble computer company founded by Steve Jobs, Steve Wozniak and Ronald Wayne in 1976. One of the biggest tech companies in the world these days, the only thing more incredible than knowing how much an IPO investment would be worth today is knowing that Wayne sold his portion of the company for $800 in 1976. Ouch. As of the end of 2020, Apple stock had split five times.
Apple IPO date: December 12, 1980
Apple IPO price: $22/share
Apple stock splits: 2-1 (1987), 2-1 (2000), 2-1 (2005), 7-1 (2014), 4-1 (2020)
What if I had invested $1,000 after the Apple’s IPO?: $1,222,735
Those who invested early are probably thinking differently about their portfolio than those who missed out.
Perhaps no food brand is more popular or well-known globally than McDonald’s (MCD). McDonald’s was born in California in the 1940s, growing into a global icon in the decades following. Eye-popping numbers — including more than 38,000 locations in 100-plus countries that service more than 65 million customers a day — give those who missed out on investing plenty of food for thought. McDonald’s is also known as a great payer of dividends and for its frequent stock splits (12 to date) — another boon for traders who invested early.
McDonald’s IPO date: April 21, 1965
McDonald’s IPO price: $22.50/share
McDonald’s stock splits: 3-2 (1966), 2-1 (1968), 2-1 (1969), 3-2 (1971), 2-1 (1972), 3-2 (1982), 3-2 (1984), 3-2 (1986), 3-2 (1987), 2-1 (1989), 2-1 (1994), 2-1 (1999)
What if I had invested $1,000 after the McDonald’s IPO?: $7,259,220
It is clear that the golden arches have led to a pot of gold for Macca’s IPO investors.
When it comes to streaming video, nothing matches the sheer power and reach of Netflix (NFLX). But it wasn’t always this way. Back in the early days, little red envelopes containing DVDs were delivered by mail to subscribers. But now, with more than 190 million subscribers around the world and an enormous catalogue of movies and TV shows, Netflix has become a key pillar in entertainment. It was the S&P 500’s top stock of the 2010s and has split twice since its initial IPO.
Netflix IPO date: May 23, 2002
Netflix IPO price: $15.00/share
Netflix stock splits: 2-1 (2004), 7-1 (2015)
What if I had invested $1,000 after the Netflix IPO?: $486,089
No cliffhangers here — Netflix IPO investors have made out incredibly well.
Compared to other companies on this list, Facebook (FB) is a relative newcomer, logging onto the market in 2012. While not the first social network, it is safe to say Facebook helped pave the way for Twitter (TWTR), Instagram and other platforms that have permeated so many facets of modern life. Despite its fair share of controversy, Facebook has well over 2 billion users worldwide. Unlike some of these other companies, Facebook actually hit a low of $17.73 in 2012, providing an even more affordable opportunity for investors to get on board.
Facebook IPO date: May 18, 2012
Facebook IPO price: $38.00/share
Facebook stock splits: None.
What if I had invested $1,000 after the Facebook IPO?: $7,425
While not as extraordinary as some of the others on this list, few investors would be upset at more than seven times the value of an initial investment.
One of the most intriguing brands in the world, Elon Musk’s Tesla (TSLA) is at the forefront of exciting developments in everything from autonomous cars to renewable energy and even space travel. The 40% jump in value at the close of its IPO tells you all you need to know about what the public thinks about it. Despite its first 5-for-1 stock split in August last year, Tesla’s share price has already risen to more than half of its pre-split value.
Tesla IPO date: June 29, 2010
Tesla IPO price: $17.00/share
Tesla stock splits: 5-1 (2020)
What if I had invested $1,000 after the Tesla IPO?: $185,374
A darling of tech fans around the world, Tesla’s stock price has rocketed in value, to the delight of early investors.
With more than 30,000 locations in 70 plus countries, Starbucks (SBUX) is the largest coffee chain in the world. Since its 1971 founding in Seattle, the brand has become synonymous with a Cup of Joe (especially in the United States), home to a seasonal collection of drinks beloved by sippers around the world.
Starbucks IPO date: June 26, 1992
Starbucks IPO price: $17.00/share
Starbucks stock splits: 2-1 (1993), 2-1 (1995), 2-1 (1999), 2-1 (2001), 2-1 (2005), 2-1 (2015)
What if I had invested $1,000 after the Starbucks IPO?: $395,181
That big of a return will buy a whole lotta lattes!
Still wondering how your investment decisions might have played out if you had invested at a different time, held longer or made other choices? Take a look at the eToro time machine for more stock comings and goings. Find out what $1,000 worth of shares would equal now if you had invested in Disney 20 years ago, or how much ASOS shares have risen since its IPO in 2001. From Nintendo to Zoom to Toyota, the time machine covers years of stock market history, so you can check the results of traders investing last year or last decade.
Of course, being able to invest in an IPO is not always feasible, or possible. And finding one that returns similar profits to the companies listed above is certainly rare. But that does not mean there is not success to be found in the stock market. You can find many of the tools you need all in one place — the eToro trading platform. It gives you access to great news, tracking tools and investment capability, as well as our CopyTrader system. This system gives you a chance to mimic the moves of experienced traders who may be watching for new companies landing on the stock market.
You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.