Without a doubt, Amazon is the biggest e-commerce company in the world. Since its humble beginnings in 1996, the company built a reputation as the go-to online retailer globally. It is one of the pioneers of online shopping. To date, even with the emergence of its new competitors, Amazon remains to be hard to rival. It is no longer surprising that many of the online shopping guides point out to products you can buy at Amazon.
Because of the positive image the company has built, its stocks are some of the favorites of many investors. Admittedly, there have been not-so-stellar years for its performance. Despite this, many people still believe that it is one of the best if you want to invest in stocks. Read the rest of this post and we’ll talk more about Amazon stock price development and what it means for investors.
A Look at the Past, Present, and Future
When talking about Amazon’s stock price development in 2019, we must discuss its historical performance, as well as predictions of how it will fare in the future.
According to Yahoo! Finance, as of the time of writing this article, the stock price of Amazon is 1,747.34. On the same day last year, however, the price is at 2,003. Looking at its records this 2019, the highest so far was on July 8 when the stock price reached 2,011. Analysts also expect that by the end of the year, the highest recorded stock price of Amazon should be at 2,303.14.
With the current stock prices, as well as historical data and future predictions, analysts recommend that you buy Amazon stock. After all, it is one of the most stable and trusted companies in the world, so it is hard to go wrong with the decision.
Why You Should Buy Amazon Stock
If you are not convinced to invest in Amazon stocks, allow us to give you some reasons why you should do it. According to U.S. News, this 2019, Amazon has already registered a 24% share increase. It may not be as stellar as its performance in the past years, but still, this is better compared to others in the overall market.
The business performance of Amazon is one of the best reasons why now is a good time to invest in the company’s stocks. They are out-competing other players. It is estimated that more than half of the shoppers in the United States start their shopping at Amazon. They represent a 40% share of the e-commerce market in the country and this continues to grow day after day.
Many people, including business experts, are also praising the performance of Amazon’s top management, which is one of the reasons for the company’s incredible global success. It is said that the company has one of the most experienced management teams in the industry The management style is customer-centric, which seems to be working effectively. Because the company is in good hands, you can expect positive outcomes for your stock investments.
Also, experts agree that the price of Amazon stocks is not expensive, which is why it is easy to invest in it. Especially when you consider its historical performance, you will realize that their stocks are affordable.
Lastly, the company also comes with an exceptional and sustainable business model. Even with the changes in the market demand, the business model remains incredible, making sure that the company stays profitable. Today, Amazon is more than just an online shopping platform. They have already developed their products, and undeniably, they are doing well in the global market. From smart speakers to e-readers, the company is constantly searching for ways to expand its business and earn more.
A Word of Caution
While there have been lots of words of praises about Amazon stock prices, there are also some things that should make you cautious. As an intelligent investor, you need to look at two sides of the coin.
A lot of people are concerned about how the company’s incredible performance is deeply rooted in the expertise of Jeff Bezos, the company’s CEO. His vision and leadership steer the direction and success of Amazon. While he is healthy, if there comes a time that new management takes over, stock prices can plunge. Investors may lose confidence and it might take a while before the company can rebuild itself.
To add, while the growth story of Amazon remains to be a story that is envied by other businesses, many things are out of its control. Trade wars, privacy concerns, and weakness of the macro economy are just some of the factors that can negatively impact the market performance of Amazon, as well as other companies in the United States. This problem is not specific to Amazon. Nonetheless, it is a legitimate concern to be worried about the investment you will be putting up in the form of stocks.
Investing in Amazon Stocks
If you are now decided that you would like to invest in Amazon stocks, the next thing you are probably concerned about is how to do it. Luckily, the process is pretty much straightforward. After doing your research, open a brokerage account. You can open an account in less than 15 minutes, and the process is pretty much the same as opening a savings account in a bank. When looking for a broker, some of the important considerations include the commissions and charges, customer service, reviews, and tools available to manage your stock investments.
Once you have created a brokerage account, you can now start buying Amazon stocks. You will do it through the website of a broker or a trading platform. Wait until the price is low before you buy. After buying the stock, all that you have to do is to monitor its performance and determine the smartest move to do. For most, they resort into the hold strategy when they are new and wait until the value of the stock grows, especially if they believe in the company where they put their money.