Amazon, led by Jeff Bezos, almost ran out of cash 24 years ago. At $400 billion, it’s projected to have as much money as Apple and Microsoft combined by 2027: here’s more

Amazon.com Inc. from Jeff Bezos. (NASDAQ:AMZN) nearly ran out of cash 24 years ago during the dot-com bubble bust of 2000. It appears to have been left with just 10 months of cash, with the stock price plunging to $7 from $107 .

Fast forward to 2024, Amazon is expected to have almost as much cash on its balance sheet as its rivals Apple Inc. (NASDAQ:AAPL) and Microsoft Corp. (NASDAQ:MSFT) combined through 2027.

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What happened: Amazon is expected to accumulate $127.4 billion in cash and short-term investments by the end of the year, according to S&P Global Market Intelligence, Business Insider reported.

This figure exceeds the cash reserves of the tech giants Alphabet Inc. and Microsoft, which stand at $112.8 billion and $108.1 billion, respectively.

By 2027, Amazon’s cash reserves are expected to approach $400 billion, a significant shift for a company traditionally focused on reinvesting rather than accumulating cash.

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Wall Street is now speculating whether Amazon will follow in the footsteps of other tech companies, returning some of that money to shareholders through buybacks or dividends.

Apple is projected to have a cash pile of $106.51 billion, while Microsoft is expected to accumulate $300.88 billion, bringing the combined total to $407.39 billion for two of the most valuable companies in the world by market capitalization.

See also: This startup backed by Jeff Bezos will allow you to become an owner in just 10 minutes and you only need $100.

For context, during the collapse of the dot-com bubble in 2000, Amazon’s stock fell, and the company’s cash reserves fell as well. Bezos, however, was not fazed. “Well, we’re a famously unprofitable company,” he said.

“And this is a conscious strategy and investment decision.”

Trends: The global gaming market is expected to generate $272 billion by the end of the year – for $0.55/share, this VC-backed startup with a user base of over 7 million gives investors easy access to this asset market .

Why it matters: The increase in Amazon’s cash reserves comes at a time when the company is making strategic moves to strengthen its market position.

The story continues

Cathie Wood’s Ark Invest recently made a significant investment in Amazon, purchasing 76,505 shares, despite concerns about the company’s growth trajectory. The move followed a downgrade by Wells Fargo, citing slowing growth and increased competition.

In addition, Amazon is preparing for the holiday season by increasing its workforce by 250,000 to meet the demands of increased retail sales. This hire underscores Amazon’s commitment to maintaining its competitive edge in the retail sector.

As Amazon’s cash reserves grow, the company faces pressure to balance reinvestment strategies with potential shareholder returns, a decision that could have a significant impact on its future financial trajectory.

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Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga editors.

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