When a company goes public, it can draw a herd of investors chasing the next hot IPO. For those who don’t regularly play the market, many are left wondering if they missed their gravy train. Instead of dwelling on hypotheticals, look at this hard data from a cross-section of tech companies. If you bought $1,000 worth of stock in any of these 50+ companies at IPO, this is what your shares would be worth today.
Many of the most profitable growth stocks in the world live in the tech sector. Since the dot-com boom of the late nineties, eCommerce and media companies like Amazon have been market powerhouses. For example, had you bought $1,000 worth of Amazon stock in 1997, you’d earn almost 100X your initial investment and be sitting on a comfortable $972,653. Had you sunk the same amount into Tesla, you’d now have $19,335—impressive, considering it’s been less than ten years since the company went public.
Unfortunately, tech companies can also be infamously volatile. Despite the hype around gear-centered tech companies like Fitbit and GoPro, your $1,000 would be cleaved by a quarter had you bought their shares at the IPO.
Of course, the tech sector is not the only one that’s high risk, high reward. Outside of tech, other surprising arenas can yield big returns, like apparel. You’ll notice Under Armour would have built your $1,000 up to $11,268 in just 13 years: nothing to sneeze at.
Home goods can yield long-term capital appreciation, as evidenced by Johnson and Johnson, Coca-Cola and Walmart: all household names that would win you anywhere between $1,247,040 and $12,789,450 had you bought in well over fifty years ago.
If you’re not that patient, disruptors like Netflix can turn insane ROI fast: $1,000 invested at IPO would be worth an impressive $256,331 today. Netflix took a risk and cannibalized its DVD business, pivoting into streaming services, a market it now dominates. Suffice to say, their risk paid off.
Of course, tech or non-tech, a stock’s past performance is certainly no guarantee of future returns. Winners and losers rise and fall with the tide of the economy. Whether you’re investing in tech, or non-tech companies, there will always be market outliers.