Investing in Amazon
Today, Amazon is not only dependent on online commerce or its stock market activity. This powerful company has managed to massively diversify its revenues into different business models. All of them, related to packaging, parcels, branded product development, infrastructure, cloud services, and more.All this with the intention of further expanding its empire and above all to provide its customers with an unforgettable experience. That is why, when we talk about investing in Amazon, we are talking about a real investment. But is it safe? In this article we will show you how to invest in Amazon shares in the most viable way possible Don’t you believe us? Take a look and find out for yourself.
What is Amazon?
Amazon went public on Nasdaq in the year 1997, under the code: amzn stocks. since then, the company has done nothing but expand and that is reflected since its initial public offering. Amazon with its publicly traded stock, has been one of the first two companies to surpass $1 trillion in terms of market capitalization on September 4, 2018.It is not for nothing that since its birth on July 5, 1994, Amazon has become the world’s number one reference in e-commerce.However, the diversification policy of Amazon’s founder and CEO, Jeff Bezos, points in the direction of diversifying its business model. Beyond e-commerce, Amazon is active in several sectors, including:
- Amazon Music. Aimed to offer its customers a good online music service.
- Amazon Web Services. This is a project created with the intention of offering high quality services in the cloud.
- Amazon Fresh. It is an ambitious service of Amazon which is intended for the delivery of fresh food products and in good condition.
- Amazon Kindle. It is undoubtedly one of the best platforms for reading digital books, is comprised of an App, which facilitates your reading and Fire Kindle, which are Tablets that complement your reading.
- Amazon Prime Video. It is a Streaming entertainment service, which is trying to compete directly with Netflix and the entertainment giant Disney.
All these services are offered by Amazon simultaneously, and the good thing about all this is that one service can complement the other. As in the case of Amazon Prime subscriptions, with benefits such as delivery times, priority access to promotions and, above all, immediate access to music and video.In this way, Amazon seeks to increase customer loyalty by offering them more and more services that can help them in different areas.
Why buy Amazon stock?
As we mentioned before, Amazon’s number one strategy is to build customer loyalty, offering the best of different services with the good quality that the Amazon seal represents.Now, it’s no surprise that the company is growing at a rapid pace due to its good revenue diversification. And you know what the best part is? That this will continue to happen. Amazon has made public its interest in the pharmaceutical sector.Even this powerful company has already started to get going by acquiring the online pharmacy PillPack. Thus, the birth of Amazon Comprehend Medical, which will be a service in charge of medical data processing.Now, if you want to invest in Amazon through its stock price in a safe way, we must tell you that its shares should be analyzed like those of any high-growth company. Quite simply, we should only focus on cash flow and not on profits.Buying Amazon shares: Advantages
- Consistent upward trend in e-commerce. All this thanks to the consequences of the quarantine due to the Covid-19 pandemic.
- Amazon is expanding every day and getting new ways to diversify its income. There are more and more sectors in which Amazon is entering, so we can say that the growth of this giant is just beginning.
- Amazon has a branding that is increasingly recognized worldwide. Reaching sizes such as Microsoft, Apple or even Coca Cola.
Buying Amazon stock: Disadvantage
- Amazon’s shares may be affected due to the antitrust policy. Mainly President Donald Trump has been in highlighting Amazon’s excessive weight in different sectors of the U.S. economy.
- The EU accuses Amazon of violating users’ data privacy. This is because, according to the EU, it considers that Amazon uses the data of its third-party sellers to create its own campaigns and retail strategies.
Amazon is undoubtedly one of the most attractive stocks in the market, so every investor would like to have a stake in this electronic giant. However, how can we effectively trade Amazon shares? Very easy, through brokers such as:
These brokers operate in a completely secure way and you will be able to track Amazon on the stock market. In this way, you will know the price or value of Amazon shares in real time. So you will be able to buy their shares at the most opportune moment.
Tips for investing in Amazon stock
Despite the wonders that Amazon has achieved for its customers in all these years, it continues to be accused of using monopolistic practices by the U.S. government. On the other hand, on the Democratic side, the GAFA (Google, Apple, Facebook and Amazon) has been strongly criticized. It will be interesting to see how this controversy unfolds.That gives way to the next tip, and that is to get advice from professional brokers, as they can be very helpful in acquiring shares in this company at the right time. In addition to that, you will significantly reduce the risk in your investments for each Amazon share according to its share price.