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Ecommerce giant Amazon.com Inc AMZN made its largest acquisition of all time in 2017 with the announcement it was purchasing physical retailer Whole Foods. Here’s a look at the acquisition and how shares have performed since the deal was announced.
What Happened: Amazon announced on June 16, 2017, it was purchasing Whole Foods Market Inc for $42 per share, valuing the company at $13.7 billion.
“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy,” Amazon founder and then CEO Jeff Bezos said.
The purchase added another unit into the Amazon umbrella, creating more incentives for customers to sign up for Amazon Prime to get discounts at the retailer and eventually more options for grocery delivery.
The Whole Foods acquisition is one of many that has helped Amazon boost its overall presence in the grocery, retail and food delivery sectors. The acquisition has helped boost overall revenue and reward shareholders along the way.
Related Link: Amazon Q2 Earnings Highlights: Revenue Beat, Loss On Rivian Investment, Prime Day Guidance And More
Investing $1,000 in AMZN: On June 16, 2017, Amazon shares opened for trading at around $996. A $1,000 investment could have purchased 1 share of AMZN.
Amazon performed a 20-for-1 stock split in June 2022, which would make the 1 share trade as 20 shares today.
The $1,000 investment in Amazon would now be worth $2,699, representing a return of 169.9%.
A $1,000 investment in Amazon at the time of the Whole Foods purchase announcement would have returned an annual average of 34.0% over the last five years.
The SPDR S&P 500 ETF SPY has returned 69.7% over the same time period, for an average annual return of around 13.9%.
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Image and article originally from www.benzinga.com. Read the original article here.