Stocks gave back some of the gains they earned during the rally that swept the market in the week following President-elect Donald Trump’s Nov. 5 victory — but some stocks gave back more than others.
For Amazon (AMZN), there’s not much distance between its value before the election and the current cost of its shares. If the start and end prices from those dates are the only context, it seems that not too much happened with Amazon from then until now — but a whole lot happened in between.
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Here’s how much a $1,000 investment in Amazon made the day before the election would be worth now and a look at how it got there.
Also see whether Amazon stock is a good buy this holiday season.
$1,000 Would Have Bought You About $62
Amazon closed at $195.78 on Nov. 4. At the end of the month, on Nov. 29, it closed at $207.89.
That means anyone who invested in Amazon the day before the election would have been 6.2% richer in a little less than a month.
That would leave someone who invested $1,000 with roughly $62 extra for a grand total of about $1,062 — but that was not the whole story of Amazon’s journey during that time.
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A Brief but Intense Rally Lifted the Market
Amazon was just one stock in a brief but significant post-election rally that lifted the entire market through the close of the Friday trading session on Nov. 8.
According to CNBC, the S&P 500 finished the week up 4.66% and the Dow climbed 4.61%, with both indexes tallying their best week since November 2023. The Nasdaq did even better, banking a 5.74% increase, while the small cap Russell 2000 rose by 8.57%.
But the euphoria ebbed over the weekend, and by Monday’s trading session on Nov. 11, the S&P plateaued before shedding some of its gains.
An Overzealous Tech Run Preceded an Amazon-Led Freefall
Amazon climbed higher and faster than the wider market following Trump’s victory — but then it fell further and harder too.
Investors who bought Amazon on Nov. 4 and sold at its Nov. 13 peak would have earned 9.36%, about double the Dow’s and S&P’s gains at the height of the post-election rally.
But the tech-heavy Nasdaq, which out-rallied the broader market that week, was a correction waiting to happen.
On Friday, Nov. 15 — one week after the Trump market rally’s zenith — Forbes reported that Big Tech had sold off $500 billion in value after a “dangerously bullish” run as investors dumped tech stocks that they perceived as sensitive to interest rates.
The six most valuable tech companies — Alphabet, Amazon, Apple, Meta, Microsoft and Nvidia — lost $458 billion in one day. The two stocks leading the charge — both of which lost $90 billion in market value that day — were Nvidia and Amazon, proving once again that timing is everything but that timing the stock market is impossible.
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This article originally appeared on GOBankingRates.com: Here’s How Much $1,000 Invested in Amazon the Day Before the Election Would Be Worth Now
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
