Amazon (AMZN), 'Buy' Even with 0 Won Dividend... What's the Secret to its 60,000% Surge in 25 Years?

▲ Amazon (AMZN), Artificial Intelligence (AI)/AI-generated image

Despite Amazon (AMZN) never having paid a dividend since its inception, it is considered the top choice for long-term investors. The growth formula of reinvesting vast amounts of cash into artificial intelligence (AI) and cloud infrastructure instead of distributing it as dividends, thereby generating explosive capital gains, is still deemed effective.

According to the U.S. financial media outlet Nasdaq on September 26 (local time), Amazon's stock price has surged by 66,570% over the past 25 years. If one had invested $10,000 in the past, it would now have grown to $6.7 million. From Amazon founder Jeff Bezos to current CEO Andy Jassy, management has focused capital on future growth opportunities instead of paying dividends, thereby increasing corporate value.

The power of the reinvestment strategy is also evident in a comparison with Coca-Cola, a representative high-dividend stock. Coca-Cola recorded a total return of 181% over the past decade, driven by its strong brand and dividend appeal, but it failed to keep pace with the S&P 500 index's growth. In contrast, Amazon's stock price soared by 520% during the same period, demonstrating an asset growth effect that far surpassed dividend stocks.

Management's bold capital allocation has been proven by the dominance of Amazon Web Services (AWS), its core revenue source. As a result of building infrastructure while enduring large initial losses, AWS recorded an operating profit margin of 39% in Q2 2026, accounting for 60% of Amazon's total operating profit. Q2 revenue increased by 37% year-over-year, marking the fastest growth in 18 quarters, with an order backlog reaching $496 billion.

Amazon plans to execute $220 billion in capital expenditures in 2026, a 67% increase from the previous year. This plan aims to significantly expand computing capacity to meet the explosively growing demand from AWS customers. In the past, Bezos famously said, "Your margin is my opportunity." With numerous investment opportunities available to generate high returns on invested capital amidst the AI revolution, the race toward business expansion instead of short-term dividends is expected to continue for the foreseeable future.

[Article Key Summary]

-Amazon (AMZN) stock price surged by 66,570% over 25 years, demonstrating overwhelming asset growth even with a no-dividend policy.

-AWS recorded an operating profit margin of 39% and revenue growth of 37% in Q2, securing an order backlog of $496 billion.

-Amazon will invest $220 billion in capital expenditures in 2026, a 67% increase year-over-year, solely for AI infrastructure expansion.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*