Amazon stocks refer to the company Amazon.com Inc. founded in 1994 by Jeff Bezos, its current president. This is a global giant for online purchases, which allows all users connected to the internet and on the Amazon website to access an immensity of products in numerous categories, from books to audiovisual equipment, from musical instruments to clothes.
To trade on Amazon stocks in the most intuitive way you can use this free regulated European platform.
Amazon is a real social phenomenon that has changed everyday life like Facebook or Apple have. Speaking of numbers, its turnover exceeds 80 billion dollars each year, just like a small country. Amazon shares are listed on NASDAQ, the New York index dedicated to technology companies. Today you can trade Amazon shares online through 24option’s free platform.
On this page we provide an overview of the stock, highlighting some main aspects to be taken into consideration in the case of evaluating the option of investing through the traditional purchase of shares, as well as options to be evaluated in the event you want to invest in Amazon shares with CFDs.
Below is a list of the best brokers for investing in and trading Amazon.com shares. All brokers listed are regulated and authorized with Cysec.
Top Info on Amazon.com Inc.
Name: Amazon.com Inc.
Key persons: Jeff Bezos (P) (CEO)
Amazon stocks forecasts
For investment purposes, to make Amazon stocks forecasts we need to consider some specific aspects of this company, in addition to other more standard considerations we make note of at the end of this paragraph.
As for the specific aspects, we must first consider that Amazon is one of the very few companies in the world to offer this type of service at the level it does. Its main competitors are Alibaba and eBay (mainly a site for online auctions). Amazon numbers, although extraordinary, also show how this company is very complex to manage. Despite millions of purchases made by customers each year, Amazon has had negative net results in the past. Therefore, the first thing to consider is the company’s management and the results it could achieve year by year. However, worse case scenario, it will be forced to dismiss staff linked to its additional services or adjust its current offerings, such as Amazon Prime, which allows subscribers, for pennies on the dollar, to receive orders in just 24 hours. This type of mentality is typical of Jeff Bezos, founder and president of Amazon, who is “fixated” on revolutionizing the way of thinking and acting of millions of people. He is a typical entrepreneur who thinks big, and so far has been successful.
This last statement should be considered carefully, since innovations proposed by Amazon, regardless of what they might be, could really upset the stock’s trend, in a positive way (if the innovations are well received or respond well in a given period) or in a negative way (if they are a flop). It is necessary to consider this factor the moment novelties are launched, and at a later time, when they have been “digested”. A great novelty could also come from a partnership with large agreements made with other companies.
For those considering a long-term investment, for example by buying shares, to make predictions on Amazon you’ll have to consider the factors just discussed in addition to usual ones for each type of stock investment. The latter include periodic financial statements (annual, but also bi-annual and quarterly in order to analyze historical data), analyst reports within the company (also available online in official documents), analyst reports and rating agencies external to the company.
For those who instead want the option of trading on the exchange on Amazon with CFDs, you’ll have to consider all those events that can have an immediate impact on stock prices, so as to make quick forecasts and consequently negotiate up or down . These events can be scheduled (eg announcements of earnings) or unscheduled (unpredictable events that may affect the stock).
Amazon.com Stock Prices on the stock exchange
In 1997 Amazon stock was worth just over $1, at the beginning of 2016 it was worth $552. That’s all? Of course not. In the long term, the upswing boomed in 2016 when the stock rose from $552 to over $750 in the first nine months. These are mind-boggling figures, that can make any type of shareholder, of any age, of any level dizzy. If the small investor manages to earn over $15,000 in a year with 100 shares, whoever owns 1,000 or 10,000 is certainly well off. These booms, it must be said, can lead to very clear profits, so the stock in these cases could see temporary but very incisive declines.
Amazon dividends have not yet been distributed (2016 update).
To this regard, even if it isn’t obvious, you should remembered that CFDs also make it possible to earn profits from dividends. In fact, if you have a purchasing position (ie upward) at the time of the dividend’s distribution, a premium related to the multiplier of the financial lever used will be paid by the broker on the capital available on your trading account (Plus500 offers leverage of 1:20 for shares). On the flip side, should you maintain a sell position, the premium will be negative instead.
Investing in Amazon through the purchase of shares is certainly not a simple decision, due to their cost. In fact, for every share you’ll have to shell out hundreds of dollars and, should the dollar ever lose value (if it were to) and collapse the price of this stock, it would still remain an expensive option. However, in the course of the article we highlighted the excellent reasons that could lead you to consider investing in Amazon shares.
To invest in long-term Amazon shares with the traditional purchase of stock, you can contact an authorized bank. Investing in Amazon shares is recommended in cases where the aim is to achieve long-term results. In this case commission and consultancy costs will also be taken into account, in addition to the “recommended” duration of the position length, usually not less than 1 year.
An alternative solution to the purchase of stock and specific to those who want results in the short term is that of trading Amazon’s CFDs. Among the advantages is the fact that it’s possible to start with a limited budget, operating from home or on the go with a mobile device in full autonomy. CFDs (Contract for Difference) are financial instruments that can be traded online through special trading platforms. These platforms enable you to trade online by placing up or down orders on securities. The listing of equity CFDs derives directly from that of the underlying stock, which in the case of Amazon CFDs offered by Plus500 consists of the Amazon stock as listed on NASDAQ.
To negotiate on Amazon CFDs you’ll need to access a trading platform that offers this stock. Not all brokers, in fact, in addition to offering their own trading platform, allow you to trade online on all listed stock.
To play the stock market on Amazon shares, for example, you can use the Plus500 platform, which allows you to access a large number of tradeable securities. You can test it by practicing in free demo mode, an excellent solution if you need to practice first without risking anything.
Another platform is that of eToro, suitable for those with zero or little experience and want to start slowly. This platform allows you to communicate via forums with other users, and to automatically copy what has been done by more experienced traders, independently and classified based on the results.