How Amazon Stock Went From $200 to $2000 In 6 Years
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Today we chat about Amazon stock and Nvidia stock. These stocks have some amazing potential things going on but no one paid attention for years… The things came to fruition and in a matter of a couple of years, their stocks went crazy. Let’s also discuss the stock I think has this type of potential in the future but is getting this type of disrespect right now.
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Well, good day subscribers and welcome into a segment I like to call Jeremy storytime where I take you back in time to look at a stock today a very small company named amazon.com. And we’re going to ask ourselves, how did a stock like this go from under $200 a share to $2,000 a share in a six year timeframe. And most people have no clue on how this actually happened, how its went ahead and went down.
Okay, I’m gonna go ahead and fully disclose how this actually happened. I think this is really beneficial not for like looking at Amazon stock, or for actually eyeing future stocks that have something really exciting going that, you know, a business model that might be disrespected in the short term, actually turns out to be huge in the long term.
Okay. So once again, Amazon stock, you could have bought this stock in 2012, for under 200 bucks a share. Okay, Amazon was trading under $200, a share in 2012, most of 2012, you could have paid 200 200 something dollars for that stock, and then we fast forward to 2018. And it’s a $2,000 stock, a 10x.
In literally a six year span. How in the world does a move like that happen? That is absolutely incredible. Okay, no, I would bet any money that if I ask the average person, why did Amazon stock 10x from 2012? to basically 2018? Why did it go up that much? The average person will say, Man, it’s because that retail business, right, they got all those warehouses, the retail business is so big.
That must be why the stock 10 egg over the course of that time, right? That’s why Amazon stock went up so much, right? And I can tell you, if you believe that you are 100% incorrect, the retail side of their business has been baked in for quite a while. Okay, the retail side of their business as soon as like pretty much around 2010 2011, especially 2012.
That like By that time, most of Wall Street like understood Amazon’s retail opportunity was going to be among the biggest opportunities, if not the biggest opportunity in retail, and literally the world, okay, like most folks understood that it was going to be like demin Walmart, probably like the two biggest retailers in the world, Amazon and clearly already won the number one spot in e commerce, retail e commerce continue to grow into the future.
So everybody in their grandma pretty much on Wall Street understood Amazon’s retail business and their retail opportunity by 2012. So a lot of that was already baked into the stock. But they sorted a very small business in 2006. And this business was never looked upon. It was never respected Intel pretty much after 2012.
Okay, there’s a small business they started called Amazon Web Services, they started this business in 2006. Okay, now, once again, this business was was like no one paid attention to this business. For the longest time, there were a few bowls that did pay attention to Amazon Web Services, and did talk about their opportunity in the future.
Jeff Bezos had mentioned in a couple interviews and things like that in the past on their opportunity, when it came to Amazon Web Services. I remember there was a quote, you know, it was many years ago now and that he said something like, Amazon Web Services could be maybe even bigger than the retail business people are like, what is he even talking about?
This guy’s crazy or something? Okay. And so it was a small business called Amazon Web Services. And it got no respect for longest time. Okay, from 2011, basically, 2006 to 2012, Amazon stock rose quite considerably, it made about a four or 5x move. But that was on the back at that time that was on the back of the retail business.
Basically, 2006 you go back in time, amazon.com was basically this thing that was, you know, what they said was burning money like crazy. And a lot of people weren’t sure if that was just going to be some niche thing. But then you fast forward to like 2012, and most folks had already understood like, no, this is first jar, because the numbers could just continue to grow like crazy.
Ecommerce numbers continue to grow like crazy. Amazon was the number one player in e commerce. So from 2006 to 2012, that whole stock price moved there was 100% because of the retail side of business and people realizing like how big the opportunity was on the retail side of the business.
But this Amazon Web Services, it was like it was never talked about really, it was like completely forgotten about Okay, and then this little little teeny business grows into a Goliath giant. This chart shows you the annual revenue of Amazon Web Services from 2013 to 2018.
And what we can’t even see is how small the numbers really were back in 2010 2011 2012. The numbers were teeny tiny, okay. But look at the catastrophic growth from 2013 to 2018. For a business that was doing just over $3 billion in revenue in 2013, to now over $25 billion.
They just did in 2018. Absolutely on real growth that most folks out there on Wall Street did not give Amazon any credit for did not foresee as being as big of a business going in the future. Okay, Amazon had this business like you could have researched it, they knew about it.
They would talk about it from time to time, like it was there, anybody can research this business for the longest time, people chose to, like, you know, just given a blind eye or just didn’t have the vision for it. And then all sudden you see the numbers, it gets impossible to ignore.
And that’s how you get Amazon stock to go up 10x in literally about a six year span, okay. And the best thing about Amazon Web Services is it’s not like the growth is done with this, this is this business model or anything. Okay, Amazon Web Services, this was the latest quarter, they just grew revenue 41% for the cloud computing division, okay, sales of Amazon Web Services rose to $7.7 billion from 5.4 4 billion a year earlier.
Okay, on real unreal numbers as business has been putting up, okay. And that might not even be the best part of the Amazon Web Services, the fact that revenue is growing so substantially, but then you look at what it’s doing for profitability of Amazon stock, and you just use mine is simply blown. Okay, here go ups was around 20 bucks.
However, this year, they’re expected to over $27 of epcs, a massive move upward there. And then next year expected to over $38 in epcs. there and I wouldn’t be surprised if those numbers were actually a little low. Okay. This is a perfect example of a business that was inside of a business that most folks did not foresee being even close to being as big as it was, most people didn’t pay attention to it.
Even you know, nowadays, if you’re looking into Amazon stock, it’s impossible to ignore the Amazon web services business go back 678 910 years ago, and most folks that were looking to Amazon stock did not have the vision to see where Amazon Web Services was going to be able to go over time. Okay.
Now, this is not the only stock we have a situation kind of like this, we have a somewhat similar situation with a stock named Nvidia and video was a stock that basically did nothing. I mean, absolutely nothing for about seven years, okay, in video with a stock that literally went pretty much nowhere for seven years.
All right, this was a stock that in that, that timeframe, you know, Jensen, who is a CEO over there at Nvidia, he would always talk about, you know, how GPUs were going to be the future and how they could do all these, you know, unbelievable things. And, you know, it was just a matter of time till things started to work out and whatnot.
And you can go back and watch tons of interviews of Jensen back in the day, basically, you know, prior to the the period when the stocks just started going crazy, which was essentially like, you know, is the end of 2014, then moving into 2015 2016 2017. And he talked about this whole wave that was going to be coming for GPUs in the future and how Nvidia was going to be at the forefront of that.
But for seven years, no one cared. No one paid attention, like everybody just like didn’t have a vision for it or whatever. And then obviously, we look at Nvidia stock chart, and then literally just a few years span like a two three year span, the stock goes from like a $20 stock to you know, near approaching $300 at its highs.
Okay, even now, even now, after Nvidia’s huge SOC prep crash over the past six months, the stock is still at 150 $455. And keep in mind just a few years ago, this was a $20 Soc. There’s these are these are two perfect examples two slightly different examples.
But a business models you know, a company had that just people didn’t see Amazon started Amazon Web Services no one’s foresaw or most people there were some bowls that foresaw like how big the opportunity was for Amazon Web Services. But most folks did not foresee like how big that was going to be GPUs.
And Nvidia is opportunity in the space and how they could be into all these different products and artificial intelligence and robotics and all these things in the future and high end, you know, computing, most folks just didn’t have the vision for that at that time, even though they had proven so much and that you didn’t get that stock to move seven years, okay?
And then the stock just goes crazy. So here’s the thing, if you want a big opportunity, okay, you want to every once in a while buy something speculative. If you want to buy something speculative, you better be buying something that has massive opportunity that you want to be looking for something that has something special underlying in that business that makes you say that this might make this business model really special in the future.
This might this might be something no one’s paying attention to right now, but has the chance to fundamentally transform a company okay. So if I think about you know, the speculative stocks out there, the few that come to mind, but there’s one in particular that has such an unbelievable thing they’re doing right now in literally everybody is turning a blind eye except the Tesla bowls and that is autopilot.
Okay. autopilot is one of the most amazing creations we have seen in modern history. auto pilot is not New and it’s been around for a few years now. And it’s basically gotten no respect from Wall Street, you can watch videos on YouTube or literally just actually, you know, test drive tests or something like that, put it on autopilot and you will be you know, you’re going to be flat out amazed.
It’s going to be one of the most amazing experiences you could ever possibly have in a car. Okay, but literally, if you don’t have time to test drive a Tesla is unrealistic or you don’t know anybody that owns a Tesla. Just watch YouTube videos on how unbelievable the autopilot system in this is a business model inside of Tesla that is being completely disrespected that no one is paying attention to outside of the most core loyal bowls.
And no one’s even factoring in other than the super Tesla bulls. Like how big this business opportunities could be in the future. And how this can fundamentally change the entire transportation system. The same with Amazon Web Services has completely changed, you know, cloud products, or Nvidia that with their GPUs has, you know, completely changed what computing is and what kind of people kind of think about computing as and things like that right?
Autopilot system is is shipping in vehicles today. It does miracles today, like like, you would literally just go on YouTube and watch countless videos on what the systems can do. And no one has paid any attention to this, for the most part on Wall Street. You look at tests over the past five years, and it is a stock that has done absolutely nothing.
It’s another invidious stock, essentially Nvidia stock didn’t move for seven years. And here we are with Tesla stock hasn’t moved in five years, it’s gone up, it’s gone down, but it hasn’t literally gone anywhere. Okay. And this is what happens sometimes with stocks in particular business models.
And so when I’m looking at something I want to play as a speculative company, I want something that’s going to give me the opportunity to 10x my money and I look at what Tesla’s doing, what their autopilot systems and what they’re going to be able to do with autonomous vehicles in the future.
It is such a massive opportunity that it’s so worth me personally taking the risk on it Okay, now some people are putting their all their money in Tesla, that’s super risky. No, you can do whatever you want to do with your money. But that is obviously super risky.
Because there are risk involved with every stock. I wouldn’t feel comfortable being all in any stock out there. I like to be diversified nowadays. Okay, my days of going all in on one or two or three stocks are long gone. You know, that’s way past me.
Now. I like to stay diversified. But when I’m looking at speculative opportunities that absolutely on a whole other scale, and Amazon Web Services type opportunity, I look at Tesla’s autonomous opportunity there. Everybody knows about Tesla’s electric vehicles.
That’s what everybody pays attention to. In all the bowl, you know, bulls and bears and everybody gets caught up and what numbers test is going to put up an electric vehicles, what everybody’s not paying attention to is autonomous opportunity, which is beyond it beyond an insane opportunity.
It’s literally an opportunity that could be worth hundreds of billions, if not a trillion plus dollars in the future, and almost no one’s paying attention to it. Okay, almost. No, it’s just like Amazon Web Services when no one paid attention to that. It was like Amazon’s got this thing and it’s growing and it’s becoming a bigger and bigger thing and no one cared.
So that’s my opinion on this this little storytime where I tried to talk about a stock from the past, bring it into a stock in the future and kind of talk about you know, just the fact that people you know, sometimes don’t foresee these opportunities and they have years and years to see it and it’s not seen and then when it is seen that the price action is ridiculous.
Okay, look at Amazon stock look at Nvidia stock. Look what happens to some of these. Okay, so anyways, I hope you guys enjoyed this as always make sure to smash that thumbs up button today. Thank you for watching and have a great day.