Each day, many traders decide to buy Amazon stocks to bet on a tech giant that has no rivals. If you are thinking of doing the same thing, this guide can help you. In fact, it contains some tips on trading Amazon stocks. You will also find information about brokers such as eToro (click here for the official website) which is one of the best ways to buy Amazon stocks safely.
As you can see, we’ve also created an index where you can choose the topics that interest you the most.
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.
Best Stock Trading Platforms for Amazon.com shares
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.
Broker: Iq OptionMinimum Deposit: 10 €License: Cysec 247/14
*Terms and Conditions apply **Your capital is at risk (CFD service)
- Last generation User Interface
- Low minimum deposit
Broker: eToroMinimum Deposit: 200 €License: Cysec 109/10
*Terms and Conditions apply **62% of retail CFD accounts lose money
- Copy the BEST Traders
- TOP crypto choice
Broker: plus500Minimum Deposit: 100 €License: Cysec 250/14
*76.4% of retail CFD accounts lose money **Your capital is at risk (CFD service)
- Among the best CFD brokers
- Broad cryptocurrency selection
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 Stocks
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.
Can You Buy Amazon Stocks Through Banks?
Until recently, people who wanted to buy Amazon stocks or invest in the securities of other giants went to the bank or entrusted the task to an experienced trader. With the advent of online trading, these have changed. In fact, today we can invest in assets such as stocks, cryptocurrencies, and stock market indices – just to name three – directly from our laptop or phone with the appropriate apps.
Is the actual purchase of the share still the most convenient way? The answer is no! Why not? First of all, Amazon stocks are extremely volatile. Buying the actual stock can, therefore, be risky for your capital.
Buy Amazon Stocks Through CFDs
So what’s the best practice to do this? By considering the advantages of CFDs (Contracts for Difference). These derivatives, which have been around twenty years in the making but have only become popular with the explosion of online trading, allow you to trade or buy Amazon stocks, as well as other assets, by replicating their performance. The user gains from the price variation of the asset itself.
One advantage that will be immediately clear to you is the protection from volatility. With CFDs, in fact, you are not buying the stocks themselves, but a derivative of it. A second positive aspect is convenience and no commissions are charged.
The main advantage of CFDs concerns the possibility of earning even when the asset loses its stocks. What the trader has to do is to get the asset right by opening the right position between long and short. Yes, with CFDs it is possible to earn even if the value goes down, which definitely solves any problem related to the actual purchase of the asset.
Buy Amazon Stocks And Using The Financial Leverage
CFDs are leveraged products, which means that by using them, you can expose yourself to the market for a higher amount of money than if you were depositing. You have to be very careful as the spread amplifies both gains and losses. It is, therefore, useful to familiarize yourself with the stop loss mechanisms, which is programmable through a broker.
eToro is a very easy to use platform even for those who have never bought stocks online. You can buy Amazon stocks with eToro in a very simple and convenient process.
Among the main advantages of eToro is the ability to automatically copy what other investors do.
Many beginners use eToro to find the best investors and then automatically replicate all their trades. This way, they can make a profit right away and can also learn by watching what the best investors are doing.
Also, the performance of many of these Top Traders is really excellent since they are qualified industry professionals with years of experience behind them.
Here is an example of the returns they offer:
This opportunity is also available on a demo account as well so you can test this service free of charge and without any constraints.Shortcode
Amazon Stocks Price Predictions
You can also figure out if you wish to buy Amazon stocks through its future performance. Making predictions about stock performance on the Stock Exchange is the best way to ensure high profits.
In this regard, we can say that Amazon is one of the most interesting business players in the world. This giant, which is famous above all for being the first marketplace in the world, has its headquarters in the USA, in Seattle to be precise. Over the years, however, it has also managed to consolidate an important presence in Europe.
In recent times, Amazon has gained a lot of ground over its competitors, optimizing various aspects and focusing in particular on the standardization of procedures. Despite its recent expansion, there are still several realities that can be included among Amazon’s competitors.
These include Apple Inc., Barnes & Noble Inc., Columbia House Company and several other leading companies.
Amazon and its Partnerships
When we talk about Amazon and the number of its successes, this could also means considering the many partnerships it has. Just to give some examples, let’s remember the one with Ford, which aimed at developing a device that is useful to control a car remotely.
Among others, we also mention the one with Samsung. Dating back to 2014, its goal is to broadcast content through 4K television sets. What about its partnership with Nintendo? As they say, there’s a lot of it!
Remember that Amazon is listed on the Stock market since 1995 and is included in the calculation of the Nasdaq Stock Exchange index. The Seattle giant represents one of the most interesting assets for traders around the world with a turnover of almost 40 billion dollars a year. As already mentioned, the last few years have been positive, to say the least. For several times, the Seattle giant managed to exceed the profits of the previous year by 40%.
Amazon has enough stock market capitalization that in 2017, it exceeded 430 billion dollars.
Amazon Stocks Forecasts For Future Growth
Several years after its foundation, Jeff Bezos’ giant continues to earn money on the Stock Exchange as if it were an emerging stock. The rise in question may not end. There are several reasons for its success. First, Amazon is a colossus led by its founder. Bezos founded Amazon back in 1994 and still acts as its CEO today, which is undoubtedly positive for the company’s performance.
Another aspect to consider is the fact that Bezos owns many stocks in the group. Overall, we are talking about more than $78 million. This CEO has every interest in making the company prosper since he owns almost 20% of it. Amazon, moreover, stands out among the tech giants for the quality of its customer care, as well as a group able to contain its competitors with an order processing network that knows no rivals in the world.
Other Practical Tips Before You Buy Amazon Stocks
We saw earlier that buying Amazon stocks is not the most convenient solution. Keeping in mind the advantages of CFDs, it is worth mentioning some very useful indicators. Among these is the publication of the results on the basis of which the value of the securities can lose or gain shares.
Also, the launch of new products/services, as well as various situations, greatly affect the health of stocks A last piece of advice is to consider the general trend of the Nasdaq. Another factor that we should not forget is that aspects such as patent counterfeiting and exchange rate fluctuations can affect both investor confidence and group profitability.
We cannot conclude from these simple tips. First of all, in order to buy Amazon stocks in a really useful way of trading results, it is necessary not to lose sight of the main news about Jeff Bezos’ company. Second, there are so many reasons to bet on the shares of the Seattle giant!
Opinions Before You Buy Amazon Stocks
Amazon stocks are particularly popular with beginners because those who invested even just 1,000 euros at the right time could make a profit of more than a million euros.
Therefore, there are beginners who think that Amazon stocks are destined to grow forever.
Unfortunately, this is not the case. No financial shares can always grow, not even that of a profit-generating machine like Amazon. Jeff Bezos himself, in a confidential meeting recorded by an abusive participant, admitted that Amazon could go into a crisis within the next 30 years.
Is this a problem for anyone? Absolutely not, indeed, even the stock’s downturn can be an excellent earning opportunity.
This can obviously be done through short selling. All the best CFD brokers allow you to buy Amazon Stocks and sell them in a short position. Short selling is a speculative operation that generates profits when the value of a stock decreases.
Unfortunately, many beginners ignore this possibility and therefore give up this opportunity to make a profit.
The Cost When You Buy Amazon Stocks
What is the cost when you buy Amazon stocks? If you choose to trade with a broker that does not charge commissions, the cost is zero. The best CFD brokers we have talked about in this article always operate without charging any kind of commission or fixed cost.
For those who decide instead to buy Amazon stocks in a bank or with brokers linked to banks, the cost can be high.
Buying Amazon stocks today is very simple. CFDs are tools within everyone’s reach, which can be managed after a fairly short training course. As we mentioned the leverage, CFDs are risky products anyway. When you decide to start trading Amazon shares, it is advisable never to lose sight of this aspect and not to be enticed by the promises of immediate gains made by the promoters of scammers.
Brokers such as eToro immediately make things clear by specifying that online trading is risky.
What is the best way to manage them? The demo account is undoubtedly useful but not enough. You must also consider a strategic approach such as Money Management. This strategy is as simple as it is important. What does it consist of? The division of capital into several parts. Each of them must be allocated to a single asset or a specific transaction. Ideally, you should not exceed 5% per single transaction.
In this way, you protect the capital of those who choose to buy Amazon shares by preventing too many loss-making transactions from causing damage.