Amazon Stocks: How Much is Amazon Stock? Are They Worth Your Investment and How to Invest the Amazon Stocks?
Why Amazon Stocks?
Amazon is one of the world’s largest global retail store. Unlike other companies, Amazon has performed well over the past year despite the pandemic crippling many businesses. The company is valued at $1 trillion. The mass growth of the company has attracted a large number of investors both new and experienced. Amazon is going to keep on growing and you should consider investing in the company. In this article, let’s find out how much is Amazon Stock and how to buy them. The following are the reasons why you should consider investing the Amazon Stocks:
1. Amazon Stocks Performs Well in the Short-Term
Most stocks are focused on long-term investments. Amazon stocks performs well both in the short-term and long-term periods. By march 2020, the amazon stock was up by 5.5%, while most of the companies experienced a drop due to the pandemic. The nature of Amazon business is what will keep it growing year after year.
2. The Online Retail and the Cloud Businesses Have a Huge Potential for Growth
Although Amazon has been in the business for a few decades now, analysts say that online businesses are still in their early stages of development. Analysts predict that the AWS cloud revenue could reach up to $57 billion in 2021. That is why it is wise to start investing with Amazon now.
3.Amazon is Run by the Founder
According to market studies, stocks of the companies that are run by the founder seems to perform exceptionally well. The owner of the Amazon company, Jeff Bezos, has stocks of his company valued at more than $108 billion in March 2021. Having such stake of the company is good enough motivation to push the company to greater heights. So, if you are wondering how Amazon, will perform in the near future, the stocks are worth your investment.
4. A Fast Growing Prime Membership
The prime membership of Amazon has been growing quite steadily. Research shows that 75% of the prime members are very unlikely to cancel their membership. On average, a prime member spends approximately $1,704 per year, while the non-members spend an average of $491 annually on amazon. The company has more than 150 million prime members from all over the world.
5. The Online Stores Are Taking the Biggest Market Share Compared to Conventional Stores
More people are preferring to do their shopping online rather than go to the physical stores. More people, not just in the US, but globally are preferring the online stores. Amazon being on the biggest retail store, is receiving most of the online shoppers. In 2019, online sales accounted to 14.1% globally. It is predicted that it will rise to 22% in the year 2023.
6. Amazon Web Services (AWS) is Generates High Profits
Studies show that AWS cloud business by Amazon has the best large-scale growth opportunity in the tech sector. The AWS is estimated to have a $300 billion market share. The AWS dominates the market over the Microsoft (MSFT), which comes in second. In 2020, the AWS had a revenue of $45 billion, which is more than the revenue of both Google Cloud and Microsoft Azure combined. The growth of the Amazon AWS is projected to keep on growing as the demand for the cloud infrastructure keeps on growing.
7. Amazon Has Positive Revenue Trends
Other than its sales and AWS, Amazon has been increasing its revenue from its other businesses. Amazon increased its revenue from $10 billion in 2011 up to $20 billion in 2016. In 2018, the revenue increased up to $33 billion dollars from $30 billion in 2017. In 2020, the revenue has seen an increment of up to $37 billion.
How to Buy Amazon Stocks?
How Much is Amazon Stock? According to Motley Fool the Amazon stock is headed to cost $4100. The Amazon stocks are available for any investor who wishes to invest in Amazon. If you want to buy amazon shares, you should use a brokerage account. The Amazon ticker is Nasdaq AMZN.
The amazon stock trade has two categories which is the market order and the limit order. If you choose the market order, you buy the stocks at the prevailing cost. On the other hand, the limit order allows you to set your own maximum price that you are willing to purchase the stocks. If the stock is above that price, the order is cancelled.
The Amazon stocks have become pricier, if you cannot afford to purchase the entire share, you buy fractional shares using your broker.
If you consider investing with a brokerage firm, you should consider a firm that offers services that will help you reach your investment goals faster. Some brokers have no commission on stocks trades.
Buying The Amazon Stocks Using Your Financial Advisor
While you can buy the Amazon shares on your own or using a brokerage firm, you can also use the help of your financial advisor. Having a professional along with you as make an important investment decision is a smart move. The financial advisor can help you to buy or sell the stocks. In addition, they will advise you accordingly when the time is right to buy or to sell the stocks.
The securities markets are volatile and can change within a short time. Having an experienced financial advisor can help you make wise investment decisions amid the highs and the lows of the stock market. Additionally, the financial advisor will help you to align your portfolio so that you can reach your investment goals quicker.
Amazon Stocks Quality and Cost
Amazon is among the greatest global companies that have acquired the status of a blue-chip. The blue-chip companies have well performing stocks with minimal instances of risks. The companies that earn the blue-chip title is a result of good management, good sales and revenue generation that is consistent over the years.
Although Amazon stocks are blue-chip you should not rush into buying them. You should know how much is Amazon stock before purchasing it. As of September 2021, the cost of Amazon stock is approximately $3900. It is pricey, that is why you should consider your financial status first as well as your long-term investment goals before you invest in the stocks. Also, you should research the company’s net income which you can find on the Amazon Form 10K.
Tips for Investing Amazon Stocks Successfully
As discussed above, Amazon is big company with great potential of growth in the future. You have seen how much is Amazon stocks and why you should consider investing with the company. If you have made up your mind about buying amazon stocks, here are things you should remember:
1. Ensure the Amazon Stock Aligns with Your Investment Portfolio
The price of the Amazon stock has reached a high of approximately $3,900, but you can check the real time price of the stocks on Amazon ticker AMZN or through your brokerage firm.
You need to check and ensure that the investment does not interfere with your future investment plans. It is best to invest regularly, rather than make one-time huge investment. This investment strategy is known as dollar-cost averaging which keeps investors from buying stocks all at once.
Also, you should consider how you will achieve diversification. Investing in just one type of stocks is risky in case where the company hits the rock bottom. Therefore, you should consider other investment options other than just Amazon stocks. Diversification enables you to have wider portfolio and lowers your investment risks.
2. How Much Are You Willing to Invest On Amazon Stocks
Another important factor you should put into consideration is the amount of money you are willing to spend on Amazon stocks. You should consider factors such as how much is Amazon stock, the fees or other costs involved. Experts advise you to avoid buying stocks with the money you might need in the next five years.
Ensure you have set aside your emergency funds as well enough for your financial short term goals. Also, instead of struggling to buy one share at such a high price, it is best to buy in fractional shares. Look for the brokers who offer fractional shares.
3. Understand the Amazon’s Investment Potential
Don’t make your decision to buy or not buy the stocks based on the company’s current price or past performance of the stock market. Analyze all the aspects that make Amazon stocks an ideal investment for your goals. Check substantial information such as the net income, the management, revenue, and earnings. Look at the competitors too. Ensure that, if you decide to invest in Amazon stocks, how it is going to impact your portfolio. Proper research will help you make an informed decision whether to buy the stocks now or not.
Amazon is one of the biggest blue-chip companies globally, buying its stock is a good investment. However, it does not guarantee you success of your investment. You should consider factors such as your investment portfolio, how much is amazon stock, the amount of money you are willing to invest, your investment goals, among other factors.