Buy Amazon stock now without any fees
Want to buy Amazon stock? We’ve prepared a handy guide that explains how to buy stock in this ecommerce giant and tells you why this could be a great investment decision. Keep reading to find out more.
Our guide describes how using an online broker with CFDs gives you an excellent way to trade on the value of big tech firms like Amazon. Plus you’ll learn why Amazon’s P/E ratio gives you a great clue as to its overall long-term health. So take a look below to see why you should buy Amazon stock now.
In-demand Amazon stock
Amazon has pretty much defined ecommerce. Since starting up little over two decades ago, Jeff Bezos has transformed Amazon from being a home business into one of the ‘big five’ tech companies. 2020 saw Amazon posting operating revenues in excess of $386 billion and with Bezos’ net worth roughly half of that. So it’s easy to see why everyone wants to get involved with the world’s largest retailer.
But Amazon has grown to be something much more than an online shop. The Amazon Prime delivery service has over 100 million subscribers, plus it has expanded into everything from media streaming to producing its own tech products including smart speakers and tablets. Don’t forget that Amazon has made numerous wise investments into other companies like Whole Foods, as well as cloud computing and even artificial intelligence.
It’s been some time since Amazon had its IPO where investors bought shares worth as little as $18. But with the Amazon share price currently sitting in excess of $3,000, it shows that there will have been some smart investors out there. Amazon stock price history continues to improve year-on-year.
Amazon stock prediction
While Amazon stock has grown impressively since its IPO way back in 1997, it’s fair to say that this big tech’s stock can be fairly volatile. In the year before we wrote this guide, the Amazon stock price had risen to as much as $3,552.25 and had sunk as low as $1,889.15. Here are some of the key factors that could influence your decision as to whether you should buy Amazon stock now.
Price to earnings ratio: You’ll probably see this written as P/E ratio. This describes the ratio between the stock price and the earnings posted by the company. For example, at the time of writing this guide, Amazon’s P/E ratio was 73.98. This means that if you’d purchased all of Amazon’s shares, it would take nearly 74 years for Amazon to generate sufficient profits for you to earn back your initial investment. If you compare that to the current Facebook P/E ratio of 29.18, then you’ll know why so many people want to buy Facebook stock.
Financial reports: However there’s more to a company’s stocks than its P/E ratio. The best way to really see how a brand is performing is to take note of the findings of its quarterly reports.
Check your investment needs
It’s easy to want to rush in and buy a high-performing stock like Amazon. But here are some things you should think about before you buy AMZN.
Affordability: Remember that Amazon stocks have had a share price in excess of $3,000 for much of the past six months. So consider how buying CFDs (contract for difference) allows you to buy a portion or a fraction of a share’s value, rather than buying the share outright.
Short versus long term investment: It requires plenty of skill to be able to make consistent short-term gains over volatile stocks like Amazon. So consider making a small long-term investment that will be easier to manage and could expose you to less risk.
How to buy Amazon stock
Buying Amazon stock is a relatively simple process that can be carried out in a matter of minutes. So if you’ve done your research and have made the decision to buy Amazon stock now, here is what you need to do.
Create an online broker account: You will always have to register your own personal account when you use an online broker like nextmarkets. Signing up is usually a fairly straightforward process. It’s mostly just a matter of supplying your personal details like your name, home address, email address, date of birth and so on. You will also have to provide your bank details and there should also be some kind of verification procedure to ensure that it’s really you opening an account under your name.
Make a deposit: Once you’ve set up your account, you’ll be ready to fund your trades. All good online broker sites will let you make simple deposits with trustworthy debit and credit card brands such as Visa and MasterCard. As well as the legendary security features of these card brands, they also give you the benefit of being able to make virtually instant deposits – hugely important for fast-moving stocks like Amazon.
Check out the latest stock statistics: After you’ve funded your trading account, you’ll be able to browse the main stocks page of the broker site to see the Amazon stock price history. You’ll spot Amazon stock trading under the name AMZN. There should also be plenty of detailed statistics that can help you decide whether to buy Amazon stocks and how many. Such statistics include market capitalisation, P/E ratio, previous close, 52-week lows and highs, opening rate, daily high and low.
Execute your trades: Now that you’ve analysed all of the relevant market data, you’ll be ready to make your decision as to how much Amazon stock you’d like to buy. Just type in the quantity and submit your request. Doing so should mean that your purchase will be instantly processed and you’ll have successfully invested in Amazon.
Analyse risk
We have to make the important point that investing is inherently risky. Many investors on the stock market will make a loss, and it’s essential that you only invest money that can handle losing. While everything from Amazon stocks to cryptocurrencies have made rapid gains over the past decade, this is no guarantee that things won’t quickly deteriorate. After all, the dotcom crash showed how speedily ambitious tech investments can drop in value. So always consider the downside of online trading as well as the upside.
Investing in big tech
It’s worth doing a little research into the online broker that you are using. After all, you will be making your deposits at these trading sites and you will also be providing the broker with some potentially sensitive personal information. We would also recommend that you see how CFD trading could offer you an easier way of managing your investment portfolio. Plus it’s good to only use those brokers who offer you free stock trading so that you can keep those commission fees to a bare minimum.
The great thing is that when you use a broker who uses CFDs, you’ll find it just as easy to invest in Amazon or buy Facebook stock. This is because when you buy a CFD, you aren’t actually buying the stock of the company. Instead, your investment will be linked with the price changes of the stock. So if you bought a CFD in Amazon, you’ll get a return should Amazon’s price rise. Conversely, your investment would take a hit should Amazon’s stock price fall. As long as you remember both the negative and positive points of investing in CFDs, you’ll see that they can offer many advantages over just buying stocks outright.
Amazon stock prediction
While many companies have struggled with a variety of problematic global conditions over the past few years, Amazon is one of the few brands that has adapted well to ‘the new normal’. This is because the brand has been well placed to take advantage of online technologies that see us moving away from high street shopping towards ecommerce.
However, it’s worth noting that there is a fair amount of concern about how Amazon will cope once Jeff Bezos steps aside from his CEO role. Bezos will be staying active at the brand, but it could prove to be a pivotal point in how Amazon tailors its long-term business strategy.
It’s thought that Amazon will continue to grow as a services company to work alongside pre-existing companies rather than stealing their sales outright. As such, Amazon is expected to be working on helping other brands do everything from advertising to providing logistics support and shopping.
Much of this optimism is down to the fact that Amazon just can’t stop posting record figures. The brand recently earned quarterly revenues that topped $100 billion for the first time, and it’s thanks to its diversification away from ecommerce that Amazon continues to be a star of the stock market.
There are plenty of interesting rumours about where Amazon will head next. From conquering the cloud computing model, there are indications that Amazon could soon be heading into the healthcare market. Plus with renewed investment in advertising and some impressive advances in AI tech, it looks like Amazon is set for yet another record-shattering decade. Definitely something to think about when you decide which stock to buy next.
Alternative investment options
While Amazon is a great investment opportunity, there are obviously many other big tech brands who’ve been making a killing on the stock market. Anybody who witnessed the Facebook IPO of 2012 will know how that brand lived up to the hype. In fact, whether you’re looking at companies ranging from Apple, Microsoft and Google to Tesla and even Netflix, you’ll see how technology is powering the big hitters on Wall Street. Although there are plenty of concerns about whether the tech bubble will burst again, it would clearly defy the past couple of decades of exceptional growth.
Similarly, there are many people who are predicting that the Bitcoin bubble will burst sooner or later. In effect this already happened in 2018 when the value of Bitcoin dropped a staggering 65% in less than a month. However, Bitcoin has since bounced back and looks like it might finally be getting accepted by the mainstream. Plus with other cryptocurrencies like Ethereum, Ripple and Litecoin making remarkable gains, it’s easy to see why cryptos are making their presence felt at most decent online broker sites.
Stocks in big tech companies and cryptocurrencies may get lots of headlines, but this volatility can also have a dark side. This is because both are capable of soaring highs and crushing losses. As such, it’s often a good idea to try and balance out your portfolio by investing in a few more traditional assets. It could be something as simple as investing in forex markets like US dollars or British pounds. Plus commodities markets such as precious metals and energies are well known for their relative stability. All of which should give you lots of solid options for your online trading.
Conclusion
Our guide has shown that there are plenty of great reasons why you should buy Amazon stock now. Everything from the brand’s basic ecommerce model to its investments in everything from streaming to AI shows that Amazon has big plans for the future.
You’ll also know that trading CFDs gives you a flexible and easy way to benefit from the price rises in big tech stocks like Amazon. Obviously, the best way to navigate the turbulent stock market is to invest cautiously. But if you’re willing to do your research and only invest with money that you don’t mind losing, then the chances are that you’ll enjoy what you get when you buy Amazon stock.
