Success is in your hand!

Tuesday, June 20, 2017

What $1,000 Invested in Facebook, Apple, Amazon, Netflix and Google 10 Years Ago is Worth Today

Generally, the stock market cycle has an average period of 10 years, which consist of both bull and bear markets. So it would be interesting to find out how the company's stock is performing throughout the whole market cycle. Let's take a look at how the most popular technology stocks, namely, Facebook, Apple, Amazon, Netflix and Google, also known as FAANG, would perform!




For better illustration, #YourFinanceDoctor gathered Morningstar data to see what $1,000 invested in these FAANG companies back in 2007 would be worth 10 years later. If you would like to find out the 5 Best Performing Unit Trust Funds in Past 10 Years, click through to see which funds have produced spectacular annualized return in the past decade. 



1. Facebook (FB) : $3,940.29 (5 years)
Share Price May 18, 2012 : $38.23 
Share Price June 16, 2017 : $150.64
5-year Annualized Return : 38.08% 
10-year Annualized Return : N/A

Facebook held its Initial Public Offering (IPO) on Friday, May 18, 2012, which was the biggest in technology sector with a peak market capitalization of over $104 billion. Since it is less than 10 years, it would not be fair to compare along side with the rest. However, a whopping 38.08% of 5-year annualized return still very incredible! 



2. Apple (AAPL) : $7,961.29
Share Price June 18, 2007 : $17.87 
Share Price June 16, 2017 : $142.27
5-year Annualized Return : 13.13% 
10-year Annualized Return : 24.34%

Everyone knows about Apple as they build their branding well thanks to their premier consumer products that became a status symbol of luxury. Apple managed to refocus into consumer electronics successfully by keeping things simple and packing more features into their devices. Invested $1,000 10 years ago would brings you to a magnificent $7,961.29! 



3. Amazon (AMZN) : 13,749.91
Share Price June 18, 2007 : $71.83 
Share Price June 16, 2017 : $987.71
5-year Annualized Return : 35.24% 
10-year Annualized Return : 29.86%

Founded by Jeff Bezos where Amazon started as online bookstore back in 1994, and now became the largest internet-based in the world by total sales and market capitalization. If you noticed the logo of Amazon, you would realized that there's an arrow pointing from A to Z which represents their A-to-Z guarantee claim policy. Investing in Amazon would yields a 29.86% of 10-year Annualized Return! 



4. Netflix (NFLX) : $53,279.67
Share Price June 18, 2007 : $2.86
Share Price June 16, 2017 : $152.38
5-year Annualized Return : 74.57% 
10-year Annualized Return : 49.05%

In the initial years, Netflix focuses on DVD rental by mail business. As the technology changes, Netflix switch the focus to streaming media which expanded internationally, and even entered the content production industry in 2013. Among all the FAANG companies, Netflix generates the highest 10-year Annualized Return of 49.05%, which means the $1,000 invested 10 years ago has now became $53,279.67!




5. Alphabet (GOOGL) : $3,717.53
Share Price June 18, 2007 : $257.60
Share Price June 16, 2017 : $958.62
5-year Annualized Return : 21.94%
10-year Annualized Return : 11.65%

Alphabet, a.k.a Google is the most well known brand given the success of their internet related services and products, particularly the search engine. Now Google is just one of the subsidiaries under Alphabet as Alphabet is a conglomerate of various interests such as Youtube, Blogger and many more! But don't be surprised that the 10-year Annualized Return is actually the lowest with 11.65%, simply because 10 years ago their share price has already exceeded $100 since 2005.




This is the power of investing! But here's the question, how many of us can actually resist the temptation to sell when it is high or fight the emotion to keep when it is low? Most importantly, these are just the successful cases for technology companies, there are still plenty that ended up badly. So it is important to know what's your investment objective and what you are investing in!


All the result were prepared by #YourFinanceDoctor using Morningstar data.

3 comments:

  1. Wow so amazing company and very high level..

    ReplyDelete
  2. Never knew it before. I love to read this kind of articles.

    ReplyDelete
  3. Not easy to invest something in new company / startup. If u're lucky enough, that good. Last time Apple also got problem, right.

    ReplyDelete

Feel free to comment! Thank you!

Henry Tan - Your Finance Doctor © 2014. All Rights Reserved | Powered By Blogger | Blogger Templates | Designed by-Dapinder

UA-40859242-2