Buy Amazon Stock Today
The quickest and easiest way for individuals to buy Amazon stock is to open up a brokerage account, according to Kavan Choksi, investor, founder, and business management and wealth consultant at KC Consulting.
buy amazon stock today
If you're investing in Amazon stock for the first time, he says, you should choose a brokerage that best suits your style of investing, consider the features you want your account to include, and compare the fee structures between different brokers to determine which one best meets your needs.
Brokerage accounts not only expose you to a variety of stocks, but they also let you invest in other types of assets, including ETFs, mutual funds, options, bonds, and more. And while not all brokers let you skip out on trading fees, the best platforms offer things like commission-free trading (i.e., you won't have to pay a commission each time you exchange investments like stocks, ETFs, and options), multiple account and investment types, fractional shares, and flexible customer support.
"Buying Amazon stock directly has become a lot easier and more accessible to retail investors since their 20-for-1 stock split in early June 2022," Choksi says. "Immediately after the split was executed, Amazon shares were trading at $125 per share, and have since dropped further to around $115 per share in recent days."
Note: Though one approach to Amazon is to buy the company's stock directly, you can also invest in mutual funds or ETFs that contain a percentage of the company. However, this may not always be the best move, according to Choksi.
"Funds that have exposure to Amazon often run the risk of being dragged down by other stocks and assets in the portfolio that are unrelated. Many investors are quite bullish on Amazon at the moment, so there is more scope and opportunity for upside gain if you buy Amazon directly."
If you're more of a long-term focused trader with an eye for less volatile investments, or if you're nearing retirement, you should exercise caution when investing in Amazon. The stock has proven to be particularly volatile, so it may not be a smart choice for risk-averse traders.
One of the best ways to build confidence in your decision to buy (or sell) a stock is to thoroughly research things like the company's historical performance, earnings reports, balance sheets, and financial statements. Another good move for developing market knowledge is to keep up with all news pertaining to that stock's industry, as well as other industries and assets, according to Choksi.
Now that you've decided Amazon stock is right for you, you'll need to determine how much to invest in it initially (and you'll later want to consider how frequently you'd like to buy more shares). But the initial investment amount varies per trader. Only you can decide which amount best suits your financial situation, and you'll want to make sure it aligns with your risk tolerance, time horizon, personal budget, and investing goals.
But before you select an amount and place an order, experts recommend having an emergency fund (a savings fund with three to six months worth of living expenses) in place. This will help prevent financial hardship if your stocks succumb to temporary market downturn.
While you can't control the market or its fluctuations in price, you do in fact have a say over the price you pay for shares. This can help you invest in stocks like Amazon while keeping a good handle on your budget and personal finances.
After you've bought your shares, you'll need to put a strategy in place for multiplying your returns. And you can do so without watching Amazon's stock chart every hour (unless you're a day trader). There are a couple of strategies you could use to get started. These include (but aren't limited to) the following:
Before you sell your Amazon stock, you may want to meet with an expert to see if it's in your best interest to sell now. This could include a financial advisor if you have one, or a tax professional who can explain how selling will affect your taxes.
The exact information you'll need to enter will depend on which type of service you're using. In many cases, you'll select "sell" and enter the stock symbol, which is AMZN for Amazon. Then you'll enter how many shares you want to sell and which type of order you're putting in (e.g., a market order or stock order).
Although Amazon is a juggernaut of a stock now. It has quite the tumultuous history. Amazon stock first broke $100 dollars in 1999 but after the the tech bubble burst the stock price did not reach triple figures again until 10 years later. The stock suffered a 94% drop after the $106.69 high in December 1999, crashing to a low of $5.97 in January 2001. Despite recovering in the next few years and getting back to a stock price of over $50 the stock crashed back again down to $26.07 in 2006. Despite a positive growth period, Amazon stock had another blip during the 2008 crash, losing 60% year over year. In 2016, the stock price again had some significant drops during the year due to disappointing earnings results. But each time Amazon bounced back, hitting all all time highs and continues on its seemingly unstoppable rise.
After reporting quarterly earnings on Thursday, AMZN stock sank about 4.5%. The giant beat on revenue, but missed on EPS and provided light guidance. Most notable to the media and many investors alike, the titan missed on net sales in its cloud division ($21.3 billion actual versus $21.76 billion expected).
Amazon stock last closed at $97.24, down 0.82% from the previous day, and has decreased 42.46% in one year. It has underperformed other stocks in the Internet Retail industry by 0.19 percentage points. Amazon stock is currently +19.42% from its 52-week low of $81.43, and -42.44% from its 52-week high of $168.95.
Amazon.com, Inc. (NASDAQ:AMZN) stock spiked 16.3% from its 3-year lows of $81.43. This was caused by general market trends, as the S&P 500 (SP500) consolidated above the important level of 4000 points, as well as positive news for investors about cost optimization.
With high inflation still prevalent in the current economic environment investors will want to monitor the valuation and premium they are paying for tech stocks. This is especially true after extended rallies as a higher inflationary environment is challenging for most technology companies.
Apple, Alphabet, and Amazon stock all land a Zacks Rank #3 (Hold) at the moment. Despite broader economic concerns still very much prevalent and strenuous on technology companies, their stocks trade attractively relative to their past from a P/E valuation standpoint along with solid EPS growth expected.
On Wednesday, the company said that its board had approved a 20-for-1 stock split. The move means if you already own Amazon stock, you'll receive 20 shares for each single share you own, and if you don't own Amazon stock, you'll be able to buy it at a much lower price.
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"We wouldn't use this as any reason by any stretch to buy the stock nor would we ever use a stock split announcement as a reason to become incrementally more positive on the stock," Paul Hickey, co-founder of Bespoke Investment Group said on CNBC after Amazon's announcement.
However, if you've had your eye on Amazon stock, the split would allow you to buy shares at a lower price. And Amazon is an investment Bespoke likes for the long-term, as the company has shown time and time again that it's able to go into different sectors and be successful, Hickey said.
Amazon is "absolutely a good buy right now," says Morningstar Senior Equity Analyst Dan Romanoff. The stock is one of his "top picks," thanks in part to its advertising business and Amazon Web Services. Amazon's Prime recent price hike also underscores Amazon's pricing power, Romanoff wrote in a research note following Amazon's most recent quarterly earnings report in February. The firm estimated Amazon's value at $4,100 per share, meaning that it sees the stock as currently undervalued.
The stock split is a good thing for investors, he says, as it means retail investors can get in on the action without forking over the nearly $3,000 they would need to buy a single share of Amazon today.
If the stock has more business risk, then you might choose an even lower percentage than this range. However, Amazon is a well-established business with a top management team, and while the stock price may fluctuate, the fundamental business is solid and growing.
With dollar-cost averaging, investors add a set amount of money to their position over time, and that really helps when a stock declines, allowing them to purchase more shares. High-flying stocks like Amazon can dip from time-to-time, so the strategy can help you achieve a lower average buy price and higher overall profits.
Over the past 3 months, 39 analysts have waded in with AMZN reviews and these breakdown 36 to 3 in favor of Buys over Holds, all naturally culminating in a Strong Buy consensus rating. At $136.91, the average target makes room for 12-month returns of 44%. (See Amazon stock forecast)
Amazon stock rose sharply during the global COVID-19 pandemic but has since forfeited much of its gains due to uncertain market conditions. Although the stock is off to a great start in 2023, shares are still down 39% in the last year. 041b061a72