Here's how much you would have made investing $1,000 in Facebook, Amazon, Netflix and 19 other major companies back in the dayUpdated Show
2018-12-19T19:11:00Z Early investors in some of the biggest companies in the world, like
Facebook, Amazon, Walmart, or
Netflix, have seen their fortunes greatly magnified over the years. Business Insider took a look at historical split-adjusted price data from Yahoo Finance for 22 corporations that have become household names, and found what a $1,000 investment made back in the day would
be worth as of their closing prices on December 17, 2018. For companies that held their initial public offering or came into being after 1980, we used their IPO date as the starting point, and for older companies, we assumed an investment in early 1980. Here's how much you'd have made investing in those companies back in the day. Early investors in Snapchat's parent company Snap Inc. have not fared as well since the company's IPO. $1,000 invested in the company at its closing price after its March 2, 2017 IPO would be worth only about $231 as of December 17, 2018.Business Insider/Andy Kiersz, data from Yahoo Finance
Andy Kiersz Quantitative Editor Andy is a quantitative editor at Business Insider. He studied mathematics at the University of Chicago and Purdue University. Read more Read less Disclosure: Mathias Döpfner, CEO of Business Insider's parent company, Axel Springer, is a Netflix board member. Read next LoadingSomething is loading. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. More... When a company's stock gets released to the public in an initial public offering (IPO), there's usually not much news coverage outside of the financial media outlets. But that was not the case in 2012 when Facebook (META 0.26%) announced its go-public event. It was hard to avoid the buzz leading up to the stock's release day, and many social networking fans who had never invested in stocks before were interested in getting in on the action. Let's take a look back at the early years at Facebook to understand why investors were so excited about this company going public. Then we'll dive into the IPO calculations and discuss an alternative approach that would have been even more lucrative. Facebook was a hit from Day OneIt all started in 2004 when then-freshman Harvard student Mark Zuckerberg and his friends started "TheFacebook" as a way for students at the university to connect online. The announcement of the site was sent to an email distribution list of 300 students, but within the first 24 hours, four times that many had registered. In the first few years, the service was only available for college students, but even with that limitation, it reached 6 million members by December 2005. The torrid growth didn't seem to slow down. When the IPO rolled around in May 2012, the platform had an amazing 526 million daily active users across the globe and had achieved a $4 billion annual revenue run rate. No wonder people were excited about the opportunity to own stock with this amazing growth story.  Investing in IPOs and holding for the long term can lead to market-beating results. Image Source: Getty Images Getting in at the beginningThe stock was offered at $38 per share via the IPO. Let's assume you bought 132 shares for a total of $5,016 on May 18, 2012, and held all the way through to today. In the meantime, Facebook continued its incredible growth and has turned into a global juggernaut. The table below compares Q1 2012, the last quarter before its IPO, to its most recently reported results for Q2 2019.
Data source: Facebook's SEC filings. Shareholders have shared in the company's success. At today's price of around $191 per share, those 132 shares would be worth $25,212, resulting in a market-beating five-bagger. Any investor should be happy with that result, but there was a way to improve your returns with a simple strategy. A different approach with better resultsFacebook's IPO was largely viewed as a failure. In the days following the stock's release, it dropped -- and dropped and dropped. The stock stayed below the $38 mark for months and finally bottomed out in September 2012 below $18. The first 16 months of the stock's history were spent below the IPO price. FB data by YCharts. The shares didn't get back to the initial $38 again until August the following year, a full 16 months later. This was a tough pill to swallow for those who bought on Day One. But one approach that investors can use to help in a case like this is to buy in thirds. The idea is that you can get in on the stock with a small initial investment but have cash left to invest later. If the stock goes lower, you don't feel too bad, because you have money available and can add to your position at a better price. If the stock starts to rise, as a shareholder, you can be comforted that you are capturing the gains. With 20/20 hindsight, we can see how this strategy would have paid off for Facebook IPO investors. Let's assume you invested one-third of your available cash at the IPO and the remaining two-thirds split between buys at six months and at one year later.
Share prices from Yahoo! Finance. With this approach, you would have 47 more shares and a 26% lower cost basis. Today, those 179 shares at the $191 price would be worth $34,189, or almost 36% more than just investing at the IPO. Buying in thirds doesn't always pay off monetarily, but it can help manage your temperament if the stock loses value. Red numbers in your portfolio are tough to look at. Some investors might be tempted to sell, especially when numbers remain in the red for what seems like an eternity. Early Facebook shareholders who chose a buy-in-thirds approach not only would have achieved better results, but more importantly, they were more likely to hold their shares through the first 16 months of disappointing returns. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Brian Withers has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Facebook. The Motley Fool has a disclosure policy. How much would I have if I invested 1000 in Facebook?If you invested $1,000 in Facebook when it went public on May 18, 2012, the market value of your shares would be worth $4,964.21 at Wednesday's close, according to CNBC calculations. Over the same stretch, a $1,000 investment in the S&P 500 index would have grown by 216% to about $3,166, compared to Meta's 396% return.
What will Facebook be worth in 5 years?Facebook Stock Forecast 2024-2028
These five years would bring an increase: Facebook price would move from $193 to $364, which is up 89%. Facebook will start 2024 at $193, then soar to $196 within the first six months of the year and finish 2024 at $231. That means +70% from today.
What was Facebooks original stock price?The company was founded in 2004 and went public via IPO on May 18, 2012, with a share price of $38.
Is Facebook a good investment right now?Meta Platforms (NASDAQ:FB), formerly known as Facebook, has suffered significant losses in the 2022 tech selloff. The company has lost over $500 billion since its rebranding.
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How much would $1000 invested in facebook be worth today
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