Investing in Amazon (AMZN) Stocks? Buy Amazon Shares Now

Amazon Review and Analysis

Overview

Despite its undeniable dominance over the years and its market cap of $1,5 trillion, the Amazon share is till comfortably ranked in the growth shares, since the continuous expansion of the offering of this ecommerce giant almost guarantees that more growth is on its way. Amazon’s long-term momentum may well be maintained by expansions into new areas, such as healthcare, as well as dipping into the cryptocurrencies’ realm. Moreover, saw the recent pandemic and the ensuing increase in online retail shopping due to lockdowns, boost its sales by 44%.

By the end of the guide, you should know the following:
• A brief history of Amazon.
• Amazon stocks' historical performance.
• If Amazon stocks is a good or a bad investment.
• How to buy Amazon stocks.
• Where to buy Amazon stocks.
• Amazon stock price prediction: Where Will Amazon stock Be in the next few Years?

Fundamentals

Amazon is restless and is not simply satisfied by the good performance of its bottom line offering. Instead, it is always on the lookout for further growth opportunities, especially through synergies that already fit into its existing client base and infrastructure. One such move, was its recent entrance into the $319 billion pharmacy market, by allowing clients in 45 different US states to fill their prescriptions through Amazon pharmacy. By drawing on existing structures, Amazon was able to offer massive savings at checkout coupled with 2-day free delivery, thus allowing it to effectively compete in this extremely competitive industry.

Pros and Cons of Buying Amazon stock investment

The Benefits of Amazon stocks investment

Amazon’s founder and CEO, Jeff Bezos, who is a major and seasoned professional with a proven ability to discern and invest in growth opportunities, has managed to skilfully lead gigantic markers and also inspire and motivate talented individuals by his side. Such leadership may only count as a strongpoint for the Amazon share.

Another pro is the fact that since Amazon is active in a wide variety of fields, ranging from global e-commerce, to advertising and cloud computing, an investment in Amazon brings the same wide exposure and diversification for Amazon investors as well. Coupled with this, is Amazon’s constant willingness to be always on the lookout for new opportunities for further expansion and even entry into new, promising, industries.

Things we didn't like in Amazon stocks investment

The most obvious downside of the Amazon stock is its high price, which is currently at over $3,200 per share. Other cons include significant regulatory risks and the overvaluation faced by the company, as well as pressures resulting from the increased and fierce competition by other direct-to-consumer online sales services.

Historical performance

Amazon’s share price at the time of its IPO on 15 May, 1997 was $18, but is stock history ever since has been marked by a series of stock splits, which have largely shaped its course so far. Following the decision of its board of directors, more shares to current shareholders where issued in June 1998, January 1999 and in September of the same year.

Amazon Stocks Future Price Forecast Predictions

* The prediction figures outline some of the Potential high and low of Amazon shares price prediction forecasts for the years 2021, 2022, and 2025 based on the data collected from various sources meant strictly for educational purposes only and not taken as investment advice.

Amazon Shares Price Prediction for the year 2021

By the end of the year 2021, using forecast and algorithmic analysis, our price prediction forecasts suggest that one Amazon share will reach an average price of $3.5, which will be an impressive 1% growth from it's current market price.

Amazon Shares Price Prediction for the year 2022

By the end of the year 2022, our price prediction forecasts suggest that one Amazon share will reach an average price of $4, which will be an impressive 2% growth from it's current market price.

Amazon Shares Price Prediction for the year 2025

By the end of the year 2025, our price prediction forecast suggests that one Amazon share will reach an average price of $3.5, which will be an impressive 1% growth from it's current market price.

Where Can You Buy Amazon stocks

There are several online sites and platforms where people from across the globe can buy Amazon at good exchange rates and with low or no transaction fees. To aid your quest we have comprised a list of some of the most popular methods and platforms to buy Amazon from and your strongly advised to consult this list before making your first purchase of or investment in Amazon.

How Can You Buy Amazon stocks

It only takes a few easy steps to buy Amazon stocks with credit card instantly. Speed matters - get instant confirmation, minimal registration & KYC verification!

By the end of the guide, you should know the following:
• Click the Buy Now button.
  Buying Amazon with debit card is easy, fast and risk-free. All you need to do is click the “Buy Now” button and then be safely directed to the check-out page.
• Fill in the fields.
• Proceed to checkout.
• Receive your Amazon stocks.

Risks of Investing in Amazon stocks

Tips on How to Invest in Amazon stocks and Make a Profit

There is no guarantee that you will make a profit when you invest in Amazon. However, to give yourself the best chance possible we have hand-picked the three most valuable such strategies, which you can find below:

• Tip 1: Set your own specific Financial Goals
• Tip 2: Dollar-Cost Average Your Amazon Investments
• Tip 3: Diversify Your Amazon Investment

Future Outlook for Amazon stocks

Amazon stock will still be growing in five years

Amazon's e-commerce dominance has fuelled its revenue growth, while at the same time rendering Amazon a feared player in the retail industry. However, since retail is not a particularly profitable sector, the Amazon team has expanded into other higher income niches, such as cloud computing, with Amazon Web Services now making up 11% of Amazon's overall revenue, as well as 67% of the company's operating income. In this way, Amazon can enjoy massive profit growth and avoid the struggles faced by most players in the retail industry. Amazon stock holders are thus benefitted and managed to remain unscathed from recent S&P downward trends, as the Amazon stock fell less than others was also able to quickly recover, also boosting Amazon’s market cap.

Forecasts by expert analysts expect that Amazon profits will show a yearly growth of 34% on average, which is an impressive rate, especially for a large company such as Amazon. The expectation that Amazon earnings will be doubling every three years, makes it very possible that Amazon shares will be trading at a higher price in five years’ time.

It is not all rosy for new Amazon shareholders though, since there is no dividend being paid and thus their investment is tied to the share’s growth prospects alone. These prospects may face difficulties as competition from other large retailers increases and remaining abreast increases costs, such as the recent decision by Amazon to switch to one-day shipping to beat competitors, but increasing its own operational costs in the process. Other investments made, include heavy spending on shipping and logistics to reduce the dependence on external providers such as UPS and FedEx, as well as the development of the Amazon Marketplace Web Service in an aim to increase seller efficiency through integration with Amazon’s own platform. Though these were all moves towards the right direction, the fact remains that competitors are stepping up their game too and competitive pressures may well lead to challenges and slower growth for Amazon.

The key question arising then, as regards the future of the Amazon share, is whether the company will be able to keep redefining itself and keep finding new profit sources in order to maintain and even further boost its earnings growth. Entering new markets and further improvements to the existing offering leave room for optimism and a positive outlook, however Amazon’s already huge size and the constant competitive threats render the possibility of slowing growth more likely than before.

Overall Conclusion – Final Thoughts

Is Amazon Right for Your Portfolio?

Whether Amazon is truly right for you depends entirely on your plans, goals and aspirations as an investor, however buying into an overvalued stock is indeed a nerve-wracking venture and it is important to be sure that a current high price is indeed justified by a company’s earnings outlook and prospects. If your heart is set on buying Amazon, seek to buy during price drops, while be aware that there are other less expensive options to invest in e-commerce and cloud services companies.

Amazon’s future growth possibilities and whether it can continue to sustain its current high growth rates are subject of a heated debate, with strong voices on both sides of the argument. What will really happen, only time will tell.

In this guide, the aim wasn’t only to answer simple questions like “how to buy Amazon ?” or “where to buy Amazon ?”. Instead, the goal was to equip you with the relevant knowledge and insight to be able to see and understand the bigger picture as well as make your Amazon investment journey as successful and as profitable as possible!

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