How To Buy Amazon Stock Now – Price, Forecast and Dividend
Amazon is one of the world’s best-known brands and largest companies – and for that reason alone, it deserves investors’ attention. But Amazon stock, in addition to its global notoriety, is a stock that has performed exceptionally well in recent years and should continue to reward its shareholders handsomely.
In this analysis, we’ll take a detailed look at Amazon’s business and its strengths, and we’ll examine the historical evolution of its share price. We will also look at the forecasts and predictions for Amazon stock, studying the outlook from various angles to formulate an unbiased and definitive opinion on whether or not to invest in Amazon. You will the be able to answer que question “Should I buy Amazon stock?”. Finally, we’ll also introduce you to a broker we think is ideal for buying Amazon stock.
Let’s first look at Amazon’s business and its core strengths, before discussing the stock’s profile and future prospects in more detail.
Amazon is known as the world’s undisputed, leading online shopping retailer. Amazon’s dominance is particularly evident in the United States, where its closest competitor, Walmart, is more than 30% behind in terms of market share.
Founded in 1994 by Jeff Bezos as a platform specialized in books, it is now headed by Andy Jassy, and its online shopping platform has millions of references. Indeed, if a product exists, it is unlikely that you will not find it on Amazon.com.
Over 200 million Amazon Prime Subscribers
Amazon has also had the genius to complement this commerce activity with the Prime subscription for customers who want faster and free delivery and access to various streaming services. As of April 2021, the company announced that 200 million people worldwide hold an Amazon Prime subscription. Thus, the revenue from these subscriptions is worth more than $20 billion annually.
Number 3 in Online advertising
Another source of Amazon’s revenue related to online commerce comes from its online advertising activities. Indeed, it is possible to publish advertisements on Amazon, as it is possible on Google or Facebook. With more than 20 billion dollars of advertising revenue per year, Amazon is the third-largest advertising company globally.
World Leader in Cloud Computing Services
It is also crucial to note that Amazon’s high-margin cloud computing business ideally complements its undisputed dominance of the low-margin online retail business. Amazon is also the world’s number one cloud provider via Amazon Web Services (Amazon AWS), with a 33% market share and a solid lead over Microsoft, its closest competitor. It has only 22% of the market.
To understand just how profitable this business is, you have to know that cloud services account for only 13% of Amazon’s revenue but 50% of its profits. And in addition to being far more profitable than the e-commerce business, the cloud business has far more solid future growth potential than the mature e-commerce business.
Finally, investors should note that Amazon has launched many other less financially significant businesses, such as Kindle reading tablets, Alexa speakers, or an Appstore. In addition, the company plans to open physical stores and start pharmacy sales, which should open up new revenue opportunities in the future.
Amazon Stock Profile and History
The stock Amazon is listed in the United States on the NYSE, under the symbol AMZN. Traders can also find the stock under the ISIN code US0231351067. It is part of the most prestigious American indices, such as the S&P 500 and the Dow Jones. Amazon stock is also part of the FAANG group, which designates the most important American technology stocks.
Note that 3 Amazon Stock split have occurred in the company’s history, but none recently. Indeed, the last Amazon stock split took place in 1999.
Amazon Stock Price History
Amazon stock was first listed in 1997, but we will focus here on its evolution over the last 5 years in order to remain relevant from an investor’s point of view.
On the Amazon chart, we can see that although the trend was already bullish in previous years, the rise in Amazon stock began to accelerate in 2017, after it first exceeded $1000 in October. Just 10 months later, in August 2018, Amazon stock quote was over $2,000, up 100% over 10 months.
Amazon stock then fell back below the critical $2,000 threshold, which served as resistance for a few months before it was crossed more squarely in April 2020 in the face of the coronavirus pandemic. Indeed, the confinements and travel restrictions led to an explosion in online sales and cloud computing needs, and Amazon was one of the primary beneficiaries.
Just 3 months later and a 50% rise, Amazon stock quote then crossed the $3000 threshold for the first time in August 2020, and continued to rise to a peak of $3452 in September 2020. Since then, a consolidation below $3500 has taken place, although it should be noted that Amazon stock attempted a bullish push in July 2021, resulting in a new all-time high of $3772.
However, as we will see when we perform a technical analysis of Amazon stock later in this guide, there is good reason to believe that Amazon will soon overcome the $3500 barrier. After that, Amazon stock quote could be heading for the next psychological level, $4000, rather quickly.
Why Invest in Amazon Share? Points to Consider
Now that we’ve seen that Amazon stock price performance has been more than satisfactory over the past few years, it’s time to look at the stock’s future. To do so, we will evaluate the prospects of the stock Amazon from the point of view of its business, its financial performance, and the opinion of professional analysts. We will also take a look at the latest Amazon stock news.
The Amazon Business Model and Fundamental Strengths
Buying AMZN is like investing in 3 complementary businesses. First, it’s online shopping, an industry where Amazon is so dominant that it’s unlikely that any competitor will challenge its hegemony.
Secondly, it is also investing in the world leader in cloud computing, an industry where the outlook is very positive. Amazon also has a considerable lead over its closest competitors for this revenue stream. And third, Amazon is also the third-largest player globally in terms of online advertising, behind Google and Facebook.
Now, these three core businesses of Amazon all have a bright future. In conclusion, Amazon is a company with diversified revenue streams in areas with considerable and almost guaranteed upside potential.
The Amazon Stock Dividend
Amazon stock does not pay a dividend to its shareholders at this time. But several analysts believe that this situation could change in the near future. Indeed, Amazon’s financial position and cash reserves would allow it to pay a comfortable dividend without questioning its ability to grow.
Most importantly, we should remember that unlike traditional dividend stocks that generally have little upside potential, AMZN is a stock that investors value primarily for its high upside potential, not its revenue.
Amazon Stock Forecast and Prediction
In order to formulate an opinion on what level Amazon stock quote could reach in the future, below we will look at Amazon stock forecast from a fundamental perspective, a technical perspective, and from the standpoint of professional analysts.
Amazon Stock Forecast: Financial Performance
Amazon’s financial results for the second quarter of 2021 were solid, especially regarding earnings. Earnings per share reached $15.12, up from $12.23 expected and up about 50% year-over-year.
For the next quarter, analysts expect EPS of only $9.04. However, it is essential to note that Amazon’s EPS has exceeded consensus expectations by a wide margin for the last 5 consecutive quarters. There is no indication that the company will not surprise positively again next quarter.
Amazon Stock Forecast : Technical Analysis
Technical analysis also provides a favorable forecast for Amazon stock. The weekly Amazon stock chart shows that Amazon has been moving within a clear bullish channel since July 2020.
A simple pullback to the upper bound of the channel would imply a move up to $3800, which would mean a solid profit compared to Amazon stock price today. On the downside, only a break below the psychological $3,000 level would challenge Amazon’s medium-term bullish profile.
Amazon Stock Forecast: Analysts’ Price Target
Finally, we note that analysts unanimously advise buying Amazon stock. Indeed, 32 professional analysts are providing Amazon stock price prediction, and all of them have a favorable opinion. Moreover, the average price target posted by these analysts is $4220, which implies a potential upside of more than 20% from the current price.
Also note that the most optimistic analyst is targeting $5,000, which implies a potential gain of nearly 40% over Amazon stock price today.
Where Can I Buy Amazon stock?
It is sometimes difficult to choose an online broker as there are so many. That’s why we’ve reviewed many of them to determine which is the best one to buy the stock Amazon. And the name that came up most often was the broker ZFX.
ZFX, a World-Class MT4 Broker
This is a relatively new broker, as it was only created in 2018. However, its seriousness is not to be questioned, as ZFX is regulated by the FCA.
ZFX provides its clients with the MT4 trading platform, which is the most widely used globally thanks to its many advantages in terms of technical analysis and automated trading. Finally, it is worth noting that ZFX offers its clients to trade stocks, indices, forex and commodities.
How to Buy Amazon Stock Easily
Buying Amazon stock from ZFX broker is a quick and easy process. In fact, you will be able to open an online account in just a few minutes by following these steps:
- 1 – Register with ZFX
- 2 – Verify your ZFX account
- 3 – Make your first deposit
- 4 – Buy Amazon stock
Let’s go through each of these steps in detail.
1 – Register with ZFX
You will need to go to the ZFX website homepage and click on the “open an account” button for this first step. A registration form will appear. You will need to enter several personal details, as shown in the image below.
It will also be necessary to verify your phone number via SMS. You will then have to choose your account type, and accept the general and privacy policies.
After completing and validating the form, you will be able to download the MT4 platform immediately.
2 – Make Your First Deposit
To deposit money into your ZFX account, you will need to click the “make a deposit” button on the screen displayed immediately after registration. You will then be asked to choose a payment method. Let’s take Mastercard as an example:
You will be asked to enter the amount to be deposited and then click the “Confirm Deposit” button on this screen. The, enter your credit card information and validate the payment.
3 – Account Verification
The final step before you can purchase the Amazon stock is to verify your account. To do this, submit supporting documents online, as shown below.
4 – Buy Amazon Stock
Once your documents are validated, you will then be ready to buy Amazon stock. You can do so through the MetaTrader 4 platform provided by ZFX. Simply download MT4 and follow the steps as will be shown on screen. You will then just need to select the AMZN stock and invest in it as you wish.
Bottom Line: Should You Buy Amazon Stock ?
Amazon is an obvious – even essential – choice for all investors who want to bet on technology. The company is indeed the world leader in its most important activities, online commerce and cloud computing services, two activities that have exploded in the context of the covid-19 pandemic. But it is also developing other businesses, which ensures that it will continue to find new sources of revenue.
In addition to this glowing fundamental balance sheet, we note that the future prospects are favorable for the Amazon share, whatever the angle studied. The company has a track record of far exceeding analysts’ earnings expectations, and the stock’s long-term chart pattern is powerfully bullish. Finally, professional analysts unanimously recommend buying the stock, with targets that imply significant potential gains.
Think Amazon stock could be a great addition to your stock portfolio? We then recommend that you take a close look at the broker ZFX, one of the best intermediary to buy AMZN stock and many others.