As one of the leaders in e-commerce, artificial intelligence, cloud computing and digital streaming and considered as among the Big Four technology companies, Amazon has steadily shown strong stock market value.
Do you want to learn how to trade Amazon stocks?
Sector: Retail Trade
Industry: Internet Retail
This article will make you understand the stock outlook of Amazon plus we prepared a simple guide on how to trade Amazon stock and trade it through a reputable multi-asset brokerage company.
Since its IPO in 1997, Amazon has written a story of staggering success through the decades that followed.
The journey of this company from an online bookstore to an internet marketplace where any item could be bought on its website, Amazon continued and expanded its foothold in the e-Commerce industry.
The result is one of the most successful companies in the world today.
A History of Success
Amazon was one of the few companies that came out unscathed from the dot-com bubble of the year 2000.
Instead of being complacent, the company became more determined to succeed by expanding its presence online leading to its launching of the popular Amazon Web Services program and products like Kindle device that achieved all-time popularity among consumers.
And the rest is history...
Not soon after, Amazon widen its logistics and started marketing their cloud-computing suite.
Continued Meteoric Rise
Already achieving rising stock value when 2010 came, Amazon continued to climb steadily until it showed significant growth from the years 2015 to 2019.
Amazon further outpaced other industry leaders thanks to its roster of Amazon Web Service products.
And here's the deal:
Analysts believe the reasons behind Amazon's sustained winning ways comes from investing wisely in emerging technologies and artificial intelligence (AI).
Before you start, bear this in mind:
The first thing you must do before you start investing on stocks is to set a financial goal where you can craft your plans based on your financial situation.
Doing this will help you focus on selecting the best company stocks to invest on.
Second, you need to wisely choose the best multi-asset brokerage company to help you manage your investment.
If you bear this in mind, then you’re good to start your stock market journey.
In this article:
We will explain to you all the promising points of Amazon stock as an investment option. We will also teach you the simple steps on trading Amazon stocks.
And there’s more...
We also introduce you to the innovative platforms used by highly reputable multi-asset brokerage companies for trading and trading Amazon stocks. These are eToro and Plus500 — two of the leading firms involved in online trading industry today.
And to help you make a wiser financial decision, we will also offer you our unbiased forecast about what to expect from Amazon stocks in the coming few years.
If you’re ready to learn and invest, let’s get started.
Table of Contents
- Why Trade Amazon Stock?
- Amazon Stock Performance
- Amazon Stock Forecast
- How to Trade Amazon Stock?
- Frequently Asked Questions (FAQ)
- Best Brokers for Trading Amazon Stocks
Why Trade Amazon Stock?
Before trading a stock of a company, be sure to spend time learning about the company’s history and stock performance.
While you can easily see stock historical charts online, you need to do further research about certain factors that could affect a company’s market value.
Apart from familiarizing yourself with the stock performance history of Amazon, you also need to understand its business model and how they generate revenue.
To start with:
Amazon’s journey to becoming "one of the most influential economic and cultural forces in the world", is anything but easy.
Backed with a series of wise business decisions, acquisitions, brand expansions and innovation, Amazon eventually became one of the first companies to reach the milestone of hitting $1 trillion in market cap.
For such a huge company, you might be wondering...
When will Amazon stock split?
Amazon already had 3 stock splits in the past and these happened between 1998 and 1999. The company hasn't split its stock after that.
Amazon Stocks Staggering Growth
If you purchased $100 worth Amazon stock during its IPO in 1997, you will get five shares.
That stock investment would have ballooned to almost $130,000 at the start of the year 2020.
That is a mind-blowing increase of 130,000% on your initial $100 stock purchase!
Amazon shares have seen record highs several times just this year alone.
Despite the 2020 Covid-19 pandemic, which caused global economic downturn, Amazon became stronger due to increased consumer demands of products sold through the company’s many e-Commerce platforms.
In addition to this...
Amazon continues to push the boundaries of innovation by recently lunching the ground-breaking use of drones in their same-day package deliveries.
It also poured more investment in emergent technology such as facial recognition and AI or Artificial intelligence.
But wait, there’s more...
Amazon's decision to disclose its profits from the company's Amazon Web Services program attracted more interests from investors.
The AWS revenue from 2014 at $4.6 billion steadily grew through the years and by the fourth quarter of 2019, it reached $25.66 billion in generated sales.
This alone assured many investors of the earning power of Amazon.
- Copy investment portfolios of top Amazon traders
- Trade stocks commission-free
- Practice with a free demo account
- No overnight fees
- Risk management tools
eToro is one of the world’s most trusted multi-asset brokerage platform used for trading stocks such as Amazon’s. If you want to know more about this broker in detail, checkout our detailed review here.
Since starting in 2006, the eToro platform has gained the trust of more than 10 million traders.
How to start using eToro?
eToro's platform is very simple and straightforward but before using it, it affords you to learn and work on your trading strategy first.
After a basic process of registration, eToro users will get a virtual money of $100,000 that they can use to work on their trading strategies and harness their skill before investing on real money.
eToro’s unique social elements features
What makes eToro's platform unique is the addition of a social element called CopyPortfolios, which is a long-term thematic asset that operates in the form of a managed portfolio bundling investment and top traders with a prearranged strategy.
The ability it gives to users to copy the investments of more successful traders is what makes it truly innovative.
Learning to trade more with eToro
Known as the pioneer of social trading in the industry, eToro provides a better communication between traders that result to increased profits.
In addition to its CopyTrader program, eToro's Personal Investment Program allow traders to view others' portfolios, trade history, watch lists, general statistics, watch lists and risk level.
Doing so, a user can easily learn the many ins and outs of stock trading.
eToro charges Zero commission
Using the eToro platform will not cost you any commission charges.
Do take note though that you will not be paying commissions specifically for opening or closing long positions only.
Here's the best part:
As a regulated broker, eToro follows all the strict guidelines of different regulatory bodies including the following:
- CySEC – Cyprus Securities and Exchange Commission
- FCA – Financial Conduct Authority
- ASIC – Australian Securities and Investments Commission
- Competitive spreads for Amazon
- Trading with as little as $100
- Fast and reliable order execution
- Risk management tools
- Fully regulated by the FCA, CySEC and ASIC
CFD Trading has made it easier for individuals to invest in the stock market.
While it is complex to do this by yourself, the emergence of online brokerage companies have made the process doable and accessible.
It is important for you to choose a highly-trusted company when you decide to dabble in CFD Trading.
Plus500 is one such platform where you can learn about the stock market, invest wisely and make profits from it.
What is CFD Trading?
CFD Trading is a departure to traditional trading.
CFD stands for Contract for Difference, and it is driven by making a knowledgeable stake at an asset based on your analysis that its stock will rise and sell if you foresee an incoming decline.
It's all about trading and selling assets without having to hold on to it long-term.
This makes CFD as a popular alternative to the usual investment technique of the old, because you can capitalize on the increased chances of gaining profits.
The Plus500 platform allows you to trade Amazon stocks in a seamless process and afford you to easily invest on other high-yielding stocks by simply opening the Trade or Sell features of the Plus500 application program or apps.
Plus500 makes stock trading more convenient
With Plus500’s platforms, you take total control of your investment by simply utilizing the integrated risk management tools of the application.
The Plus500 platform is fully-digital, user-friendly and has low minimum deposit and trading fees.
Here’s another Plus500 feature that is not common with other brokers: sector indices
With sector indices, you’ll have the opportunity to trade on a basket of stocks based on a particular market sector and capitalize on current stock market investment trends using just one underlying asset rather than placing them on every stock.
Rather than trading on Amazon stocks alone, you can trade on the NYSE FANG+ index futures CFD instead.
This index is comprised of 10 next-generation technology companies which includes Amazon and other tech giants like Apple ( ), Facebook ( ), Netflix ( ) and Alphabet (Google) ( ).
Guaranteed safe and regulated
Plus500 is also duly licensed by the following financial regulators:
- Plus500CY Ltd authorized & regulated by CySEC (#250/14).
- Plus500UK Ltd authorised & regulated by the FCA (#509909).
- Plus500SG Pte Ltd, licensed by the MAS (#CMS100648-1) and IE Singapore (#PLUS/CBL/2018).
- Plus500AU Pty Ltd (ACN 153301681), licensed by:
ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546. You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.
Amazon Stock Performance
After soaring for additional 60% gain the past couple of years, analysts believe Amazon stocks will continue to get higher.
The path to higher stock value
Several analysts have lifted their 12-month price targets for Amazon with an additional $700.
A few analysts see Amazon stocks reaching monumental highs in the next year or so.
The common reasons cited by financial watchers is the momentum enjoyed by Amazon in their e-commerce business that is expected to invite more consumers when the post-Covid era arrives.
It gets better...
Analysts still see Amazon as a "safe-yielding' technology stock and with an average rating of "trade" from several trusted brokers.
Amazon Stock Forecast
Below is a snapshot of what Amazon is planning in the next couple of years and followed by our forecast of future Amazon stock value based on current market movement and analysis.
Our stock forecast should serve as your guide to making wise decisions and these are based on the current situation of the company, the worldwide economy and current market trends.
While we take pride in the high accuracy of our projections, it does not predict the future performance of a stock value.
Many factors and unforeseen circumstances may cause a different result from what was forecasted.
2020: Sustained Growth Despite the Global Pandemic
As most companies around the world took a hit financially—no thanks to the Covid-19 pandemic—Amazon managed to double its Q2 profit of 2020 to $5.2 billion as opposed to 2019's $2.6 billion.
Not so surprisingly...
As the new normal slowly takes over the way of life in 2020, Amazon generated 175,000 new jobs to meet the growing demand of its e-commerce business.
At a time when most companies are struggling due to the pandemic, Amazon showed that it can weather the storm and keep its position remaining strong.
To see is to believe?
Checkout this updated graph and notice how Amazon's stock has performed for 1 year:
A bright future
Our forecast for Amazon’s stock growth this year is going to be medium to high. More better news awaits especially if Amazon experience another solid quarter to end the year 2020.
2021: Road to More Ambitious Projects
Amazon is ready to go bigger in the coming years. Cashier-free stores, expansion in India, a widened food delivery service, artificial intelligence-powered home robots, and Alexa with a human touch, are just some of the grand plans of Amazon that are expected to start rolling out in 2021.
2022 and Beyond: Autonomous Driving and Delivery Drones
Expect Amazon to step up its self-driving technology and expand its delivery drone fleet by 2022 and beyond.
These plans will only add more promise to Amazon’s stock value in the market.
Based on the amazing news we mentioned on this article, our outlook for Amazon’s stock growth ranges from medium to high.
How to Trade Amazon Stock?
Simply follow the steps below and you're good to go:
Open an account with an online broker.
For you to trade Amazon stock and other company shares, first you need to open an account with a brokerage which offers a platform for trading.
Signing-up for an account only takes a few minutes to accomplish and after completing this process, you need to make a deposit so you can start investing.
Open your broker's trading platform.
Let's say you have opened an account with a specific brokerage and you have already funded it. The next step to do is to open their platform to start trading.
Look for the Amazon stock (symbol: AMZN).
After opening the platform, search for the Amazon stock by using the search bar and entering either "Amazon" or its stock symbol "AMZN".
Select Trade and set the amount.
Click on "Trade" and specify the amount that you wish to invest. You may also set several specific parameters depending the features that are offered to you by your broker.
Execute the order.
Initiate the trade by executing the order.
Should I trade Amazon stock?
Yes, you should.
Aside from the strong historical performance of Amazon stock, another advantage of owning a stock of Amazon is its management team, which analysts say are among the smartest people in the industry and are considered committed to the long-term success of the company.
Amazon is also expected to benefit from the increasing dependency of consumers on e-commerce platforms and other cloud computing technology.
Owning an Amazon stock is one great way of being involved with one of the highest-quality and ever-growing company in the whole world and this can be done via a regulated well-established brokerage.
So, are you excited to start trading Amazon stocks?
Excitement is an understatement as there are many things to be confident about the direction where Amazon is heading.
As it continues to build consumer base and increase threshold in the e-commerce industry, the company is expected to reach greater heights in the coming years.
This would also mean a steady growth of its stock value in the trading market.
Frequently Asked Questions (FAQ)
How Much is the Amazon Stock?
Here is the current stock market price of ( )
Who Owns the Most Shares of Amazon?
Advisor Group, Inc. currently owns the most Amazon stock at 35,429,155 shares with a total value of $69,076,932,086.
How Many Outstanding Shares Does Amazon Have?
Based on the last market closing, Amazon’s outstanding shares is 500.89 million.
Where Can I Trade Amazon Stock?
We recommend you trade Amazon stock from highly-reputable brokerage companies. eToro and Plus500 are two of the most widely-used and trusted CFD (contracts for difference) platforms in the planet today. You’ll make your life easier if you trade your Amazon stocks from either one from eToro or Plus500.
Best Brokers for Trading Amazon Stocks
From our in-depth analysis and close monitoring of the stock market, we found that eToro and Plus500 are two of the best brokers for trading Amazon stocks. You may also check other reliable brokers that offer Amazon stock CFDs. All you need to do is click on the Amazon Page of your broker of choice and you'll be directed straight to their stock trading page.
Min Deposit: $200
Regulation: CYSEC, FCA
Min Deposit: $100
Regulation: FCA, ASIC, CySEC
Min Deposit: $100
Regulation: CBI, ASIC, FSC, FSA, FSB
Min Deposit: $5
Regulation: IFSC, ASIC, CySEC