Amazon (NASDAQ: AMZN) has become a very successful company since its 1994 founding. Its initial public offering (IPO) price was $0.075 (after adjusting for subsequent stock splits) in May 1997. Appreciating about 178,900%, it's trounced the S&P 500's roughly 750% total return.

However, that doesn't mean it will replicate this return. There's an investing axiom: Past success doesn't guarantee future results.

Hence, if you are contemplating purchasing the stock or even if you already own it, it's important to analyze Amazon's prospects and valuation to determine whether you should purchase, hold steady, or sell the stock.

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Source Fool.com