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How To Buy Amazon Stock (AMZN)

If you’ve come to this website because you want to invest in Amazon, you’re probably already aware that this retail giant has consistently been a solid investment on the stock market. Consumers have been more reliant on online shopping  since the outbreak of the pandemic and this has helped Amazons stock grow.

Amazon makes it easy for consumers to purchase goods online quickly. Our guide will teach you how to open a brokerage account and start investing in Amazon stock.

Quick Amazon History 

Amazon, which began as an online book retailer in Jeff Bezos’ garage in 1994, went public in 1996. The initial public offering (IPO) price for Amazon was only $18 on May 15, 1997. Amazon is well known as a shopping site that also developed the kindle tablet and the Alexa Echo device. Amazon had been working on the very popular Echo device since 2011, and the products were eventually released in June 2015.

Jeff Bezos founded the company in 1994, and it now provides a wide range of goods and services to consumers all over the world. In February, the Amazon cofounder told workers that he will be stepping down as CEO in the third quarter of this year. Andy Jassy is set to succeed Jeff Bezos, who decided to step down as CEO. The company’s massive expansion has attracted both new and seasoned investors. 

The Good and the Bad of Amazon Stock

Amazon has proven to be a leader in basically any industry that it dives in to. Let’s review some of the benefits and disadvantages with owning their stock.

Pros of Owning Amazon Stock 

  • Amazon has shown a tendency to expand into a variety of businesses efficiently, which means there is still tremendous growth potential.
  • Amazon is an ecommerce site that puts other online shopping sites out of business because they offer such a wide variety of products from every industry.
  • Their stock is expected to continue to be one of the best long-term investments. It’ll be a stock that you’ll want to keep for a long period of time.

Cons of Owning Amazon Stock 

  • Investing in Amazon stock can be risky because sharp declines and increases in shares of this stock will frequently happen throughout the year with a company this large. Investors who aren’t prepared for this level of uncertainty will struggle to hold the stock.
  • Amazon doesn’t currently pay out dividends, making the average investor bank on growth for capital appreciation.

Outlook for Amazon Stock

Amazon recently announced first-quarter earnings and a sales forecast for the second quarter that both surpassed previous estimates. Amazon stock has soared over the past few weeks due to reports of Vice President Joe Biden’s $2.3 trillion infrastructure plan.

The company has more than 200 million paying Amazon Prime subscribers. Amazon Web Services’ revenue increased by 32% to $13.5 billion, with a $4.16 billion operating income.

Steps to Buy Amazon Stock

To purchase Amazon stock, you must first open a brokerage account, then a trading account, deposit money, and then begin purchasing shares. 

Step 1: Select a Brokerage

You must first locate a brokerage that allows you to purchase Amazon stock. You’ll need to open a brokerage account if this is your first time buying stock. After you’ve attached a payment method to your account, you’ll start by placing a buy order through your broker’s trading site.

Step 2: Open the Trading Account

After you’ve chosen the ideal brokerage, you’ll need to open an account. This account is only accessible through the internet and allows you to monitor the stocks in your portfolio. All you’ll need is an email address to get started, and then you’ll be able to launch your own trading account.

Step 3: Deposit Funds Into the Account

After you’ve added a payment form to your account, you’ll be able to deposit funds to purchase Amazon stock. The next step would be to figure out how many Amazon stock shares you want to buy.

Step 4: Search for the Amazon Ticker Symbol 

A publicly traded stock has a ticker symbol that is used to classify it on the exchange. When you’re ready to start trading in stocks, look up the ticker symbol “AMZN” for Amazon.

Step 5: Purchase Amazon Stock

You’d log into your online brokerage account, search for Amazon stock, enter the number of shares you want to buy, and press buy. It’s important for all investors to keep track of their stocks and how they’re doing.

Is Amazon Stock a Good Buy?

Your financial goals should determine whether or not you should purchase Amazon stock. Amazon’s company is doing well, and its potential for future growth is looking favorable based on analyst predictions.

Amazon could potentially continue to be a great stock to buy. Their financial results have been strong, and Amazon’s future prospects are rising exponentially. If you’re looking for a stock that will have outstanding long-term returns, Amazon might be a reasonable choice. If you have any questions or need guidance, feel free to turn to a financial advisor for investment advice.