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Unmistakably one of the most successful companies of our time (and arguably in the history of entrepreneurship), Amazon.com Inc. (NASDAQ: AMZN) is one of the world’s most valuable public companies. Buy Amazon stock.
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Amazon at a Glance
Amazon’s historical trajectory and double-down launch toward success are
It began expanding internationally in 1998 and it continued to build its fulfillment center infrastructure. From there, Amazon continued growing at a pace unmatched by any other company.
In 2006, Amazon plowed through the $10 billion
- Amazon Web Services (AWS) for public usage
- Kindle unveiled
- AmazonFresh and Amazon Music
In the 2010s, a few more things contributed to Amazon’s upward swing:
- Amazon Prime Video (released in 2011)
- Cloud computing area with Amazon AWS
- Crowdsourcing with Amazon Mechanical Turk
- Amazon Restaurants
- Streaming services like Amazon Music and Amazon Video
- A cashier-less grocery store was added to Amazon’s arsenal
Amazon reached a $1 trillion market cap on September 4, 2018 and marked 25 years in business on July 5, 2019.
History of Amazon (NASDAQ: AMZN)
Amazon went public on May 15, 1997, and the IPO price was $18. Amazon’s stock splits were part of Amazon’s history and contributed to its trajectory as well. The company’s board of directors increased the number of outstanding shares by issuing more shares to current shareholders on the following dates:
- June 2, 1998 2-for-1 split
- Jan. 5, 1999 3-for-1 split
- Sept. 2, 1999 2-for-1 split
- June 3, 2022 20-for-1 split
Amazon’s most recent stock split was effective with the close of trading on June 3rd. The stock closed at a price of $2,447 and opened up Monday, June 6th with a price of about $122.
Check out information about Google’s stock split on Benzinga for another perspective on stock splits.
Pros of purchasing Amazon stock:
- Jeff Bezos, CEO of Amazon, is a major pro himself. He’s a founder who runs his own company, invests in growth opportunities, leads gigantic markets
andattracts and motivates talented individuals.
- Amazon’s diversification keeps exposures wide, from cloud computing to advertising to global e-commerce.
- Has a willingness to dip its toe into a wide range of industries and sees opportunities in online shopping.
- Eventhough Jeff Bezos is stepping down of CEO, there is much praise as he headed into space in the coming weeks.
- Potential oppourtunity for amazon to invest in space technoloy and join in on another huge sector.
Cons of purchasing Amazon stock:
- It’s pricey. As of July 7th, 2021, AMZN opened at $3,700.63per share.
- Amazon faces increasing direct-to-consumer online sales competition.
- The company faces overvaluation and regulatory risks.
- Jeff Bezos is stepping down as the CEO.
How to Purchase AMZN Stock
While you cannot buy Amazon stock through a direct stock purchase plan, you can choose a brokerage firm to purchase AMZN. Here are some general guidelines for purchasing stock.
Step 1: Determine how much you’d like to invest in AMZN.
Generally speaking, you should only invest an amount you could afford to lose. Stocks can be volatile and it’s easy to lose money, even with a powerhouse like Amazon.
Step 2: Choose an online broker.
Once you’ve determined how much you’d like to invest, you can contact a broker and sign up for an account, fund the account, then place a “buy” order on the stock.
You can also sign up for an online broker and apply for an account, fund the account, and buy AMZN through the broker’s online interface. Don’t have a broker? Choose from one of Benzinga’s top online stock trading brokers. Here’s a quick look at our favorites below.
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
- Active traders
- Intermediate traders
- Advanced traders
- No account maintenance fees or software platform fees
- No charges to open and maintain an account
- Intuitive trading platform with technical and fundamental analysis tools
- Does not support trading in mutual funds, bonds or OTC stocks
Moomoo is a commission-free mobile trading app available on Apple, Google and Windows devices. A subsidiary of Futu Holdings Ltd., it’s backed by venture capital affiliates of Matrix, Sequoia, and Tencent (NASDAQ: FUTU). Securities offered by Futu Inc., regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Moomoo is another great alternative for Robinhood. This is an outstanding trading platform if you want to dive deep into smart trading. It offers impressive trading tools and opportunities for both new and advanced traders, including advanced charting, pre and post-market trading, international trading, research and analysis tools, and most popular of all, free Level 2 quotes.
Get started right away by downloading Moomoo to your phone, tablet or another mobile device.
- Cost-conscious traders
- Active and Advanced traders
- Over 8,000 different stocks that can be sold short
- Access trading and quotes in pre-market (4 a.m. to 9:30 a.m. ET) and post-market hours (4 p.m. to 8 p.m. ET)
- No minimum deposit to open an account.
- No chat support
This latest groundbreaking technology is IBKR GlobalAnalyst, a new trading tool that helps investors compare the rate of PEG or price-earnings growth valuations and provide more immediate and comprehensive financial metrics of stocks, globally.
Recognizing that stock selection can be challenging for investors to compare the valuations of domestic and international stocks, Interactive Brokers created GlobalAnalyst to offer investors a simple, yet powerful tool to easily evaluate investment opportunities around the world.
Using GlobalAnalyst, investors can search for stocks by region, country, industry, market capitalization and currency to uncover undervalued stocks worldwide. The resulting table displays the current market and financial metrics, including the PEG Ratio. The PEG Ratio is the PE ratio divided by the three-year compound earnings growth rate, and smaller PEG Ratios typically indicate undervalued companies.
- Price earnings growth valuations
- Easily evaluate investment opportunities
CenterPoint Securities is ideal for active traders who demand access to advanced tools and services. While investors and casual traders are likely to be content with the basic offerings of traditional online brokerages, active traders will benefit from CenterPoint’s suite of advanced trading tools. If you value execution quality, access to short inventory, advanced trading platforms, and accessible customer service, CenterPoint is an excellent choice.
- Intermediate to Advanced traders
- High-volume traders
- Momentum traders
- Short sellers
- Unrivaled access to short inventory
- Flexible order routing for improved executions
- Discounts for active traders
- Advanced platform with fast executions
- Reliable customer service
- Not designed for beginner or low-volume traders
Step 3: Buy the amount of AMZN stock you want.
There are generally two types of “buy” orders: market order and limit order. A market order will execute the purchase at the present market price, while a limit order will only execute if the price falls at or below the limit price.
Although a limit price might give you a lower price of entry, there is no guarantee that the limit order will execute.
Future Outlook for Amazon Stock
It took seven and a half years for Amazon to reach $1,000 from $100 and it’s very possible that it could hit $10,000 between 2023 and 2025. Amazon’s potential to grow could continue over time.
Is Amazon Right for Your Portfolio?
It’s a nerve-wracking possibility to buy an overvalued stock, or one with a current price that is not justified by its earnings outlook or price-earnings (P/E) ratio. Is Amazon one of those?
There’s heated debate on both sides of the spectrum, that Amazon will not be able to sustain its current rate, or that it will be subject to price-earnings contraction. In addition, it’s possible that investors could become less enamored by Amazon’s future growth possibilities.
Furthermore, you can find less expensive ways to load your plate with e-commerce and cloud trends. Buy during price drops if you’re worried about overpaying for shares.
Frequently Asked Questions
What are the advantages of buying Amazon?
You are diversified across a variety of industries and businesses ranging from cloud computing to online shopping.
What are the risks of buying Amazon?
The risks include regulatory, increased competition and high valuations.