When it comes to growth potential over time, few stocks have matched Amazon (NASDAQ: AMZN). The e-commerce pioneer has evolved from an online bookseller to a conglomerate that leads the way in several niches of retail and technology.

In hindsight, if one had the patience to wait and the fortitude to ride out massive declines, a $1,000 investment in the company’s initial public offering (IPO) would have paid off handsomely for shareholders.

Amazon’s growth

A $1,000 investment at the closing price on the day of the IPO and not sold would be worth roughly $1.87 million today. The stock made its debut on May 15, 1997, at a pre-split closing price of $23.50 per share ($0.098 per share split-adjusted). Assuming one could buy fractional shares, the 42.55 shares bought on that day would have grown to 10,212 shares worth $182.69 each as of the time of this writing.

Those who owned the stock for the entire 27-year history haven’t been on a predictable or easy path.

Investors may have anticipated Amazon would venture beyond the sale of just books, it was next to impossible to predict the huge variety of products it would sell or that it would spearhead the cloud computing industry through Amazon Web Services (AWS). This is critical because AWS generates the majority of its operating income.

Investors also endured a brutal sell-off during the dot-com bust. Between 1999 and 2001, Amazon’s stock fell as much as 95% and didn’t return to its 1999 high until 2009.

For a time, that drop made it look more like many of the failed online retailers at the time. Hence, investors would have had to have a strong belief in the vision of founder Jeff Bezos to hold their shares through that period.

Ultimately, the history of Amazon stock outlines both the rewards and the difficulties of IPO investing. While the potential returns can be massive, it typically takes vision, analysis skills, discipline, and a high pain tolerance to identify such investments early and allow them to grow to their full potential.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

If You’d Invested $1,000 in Amazon Stock 27 Years Ago, Here’s How Much You’d Have Today was originally published by The Motley Fool