Buy Amazon Shares: price and how to buy
Published: November 17, 2020 by Andrew
Would you like to start trading Amazon shares? Very well, then know that you have arrived at the only guide you need to understand how to trade Amazon shares.
During this guide we want to answer 2 main questions, the two most important of all for those who want to do business on the Amazon stock:
- Is it worth investing in Amazon shares?
- How to trade Amazon shares?
As you can imagine, we can anticipate the answer to the first question and it is YES: trading on Amazon is convenient and by continuing to read the guide we will explain why.
So, since it is convenient, you will surely like to know even the simplest and most direct way of trading on Amazon.
That’s why we will also talk about online trading brokers such as ForexTB, which allow you to trade on Amazon without commissions.
Amazon is a rich and growing company. No one with the capital to invest can ignore the opportunities this stock has to offer.
With trading it is possible to grasp them easily and without barriers to entry. As you are about to find out, literally anyone can invest in Amazon with the right tools.
Millions of traders around the world already operate and benefit from Amazon, read our guide and find out how to join them today. Amazon shares are also a favorite target for those who want to become traders.
Amazon shares trading: is it worth it?
The first thing we want to do in this guide is to demonstrate why investing in Amazon is worthwhile. In fact, it seems completely obvious to us.
To start we ask you a question: by chance do you know another financial giant that is growing dramatically and is continuing to buy other millionaire companies in different sectors and continuously in order not to stop this growth?
Although here on OnlineTradingCourse.net, we analyze different companies every day, we still haven’t been able to find a business entity that can even compare itself to Amazon.
In the past, countless analysts and market experts have predicted the demise of Amazon, first in 2013, then in 2014, then in 2015, 16, 17 … Everyone said that it was just a bubble and that its excessive power would go away.
Guess what? Amazon is still there, at the top of the ranking of the companies that bill the most and, hear ya, Jeff Bezos, CEO and founder of Amazon is the one who surpassed Bill Gates in the ranking of the richest men in the world.
Things like this don’t happen by chance and empires like this aren’t going to collapse tomorrow.
Yes, the Roman Empire also fell after 2000 years, but everything suggests that Amazon is still in the very early days of its splendid commercial and financial dominance.
Trading Amazon shares: the analysts
It is enough to observe a phenomenon that has been repeated for years now to understand that Amazon’s performances are absolutely amazing and that they have managed to disprove any skeptic.
Let’s see what analysts have said on Amazon in recent years to understand how the title has managed to exceed expectations each time. To do this, it will be enough to analyze the forecasts that were made for 2018.
Three of the best analysts around were in agreement on the potential for growth in Amazon’s share price, yet their estimates, after turning out to be true, were surpassed (and by far) by what then happened on the market.
- CFRA chief equity analyst Tuna Amobi: “I expect strong rises for 2018, Amazon shares could reach $ 1600 in value this year.”
- John Blackledge among Cowen’s top equity analysts: “Amazon is growing in 2018 with a target price of $ 1700 per share”.
- Satoshi Tanaka analyst at Daiwa Capital Markets: “The target price for Amazon this year is $ 1650 with a gross profit of 88 billion.”
Do you know what happened to Amazon in 2018? The company has beaten all the forecasts of the best analysts reaching its all-time high around 2012 dollars.
This has happened continuously over the years and is still happening today. Amazon is so strong that even when analysts’ estimates are positive, the price target is always beaten by real performance.
According to what has been stated so far, it is clear that if you are asking yourself: “buying Amazon shares is still worth it?”. The answer is a resounding YES.
In the coming years, new records will be broken and unless asteroid-like catastrophes occur on a collision course with earth, there are no clear signs that Amazon’s dominance and growth should end.
Let’s move on to the next question, the most important one: how can you buy Amazon shares in a simple and direct way?
How to Buy Amazon Shares?
If you have had your mouth watering at the idea of being able to buy such convenient shares, know that the good news does not end there.
Whoever you are and whatever you do in life, you must know that the best way to invest is trading in Amazon shares and it is an option open to everyone.
Investment capital is not a problem, any amount can be used. Skills are not a problem, smart investment solutions exist today (and we introduce them to you in the guide).
The question that remains, therefore, is one where it is actually possible to proceed with the purchase of these much sought-after shares? Let’s see if the right answer could be the bank.
Read also: Play the Stock Market
Buying Amazon shares with the bank?
2008 and a desire to buy shares. At the time, the only solution could actually be the bank. This was the only body to turn to and often it could not be done independently, but an intermediary was even needed.
Not everyone was allowed to intervene on the stock exchange and even if it was granted, it could not be done freely. You had to comply with the rules of the bank, but above all you have to accept to pay thoughtful trading fees.
Well, nowadays things have not changed. Buying shares like Amazon’s in the bank is still possible, but the truth is that it is not worthwhile for anyone … Except the bank itself!
However, one thing has changed since 2009: the possibility of trading online has also arrived, in full freedom and autonomy and without paying commissions. But we’ll talk about this later, now we want to highlight the 3 main disadvantages of operating in a bank:
- Inconvenient and dated investment mode: to buy shares you still have to go to the counter and talk to bored employees, they redirect you to the first available consultant. He indicates the conditions of the bank without even listening to the customer. In the end, if you are lucky, the maximum you get is a 2% annual return.
- Very high commissions: we must not forget that in order to carry out any investment operation in the bank, the institution must be paid high trading fees that amount to tens of euros every time a position is opened and closed.
- No control: go to the bank, talk to the consultant, sign a contract. Stop. You will know nothing of your shares and cannot monitor the situation. If you are lucky the bank offers you a monthly call with a consultant who updates you on the situation, if you want more than this you have to pay.
As you can see, trading on Amazon shares from the bank is not a good choice at all. Fortunately, the alternative is not lacking and consists of CFDs, a tool that we are now going to introduce.
Trading Amazon shares online: CFD
Not many web users and aspiring investors know that there is a legal, authorized and very convenient tool for trading Amazon shares, it’s CFDs.
CFDs are the so-called contracts for difference, they take their name from the fact that they allow you to obtain profits based on the difference between the purchase price and the sale price of a market asset or security.
How do CFDs work? They are very simple.
With a CFD, if you trade by buying Amazon shares then you can earn by reselling them at a higher price, all directly online through convenient platforms designed specifically for trading.
But there is another way to profit from Amazon shares with CFDs and that is short selling. Contracts for Difference allow you to speculate on the price of Amazon shares even downwards.
If you sell stocks and their price actually goes down afterwards… You still make a profit!
No it’s not magic and it’s not an illegal mechanism. These are just the great opportunities offered by online trading with modern financial instruments such as CFDs, designed for maximum speculation.
Trading Amazon with CFDs: advantages
Do you also want another good news? CFDs are easy to use and are perfectly suitable even for beginners. They do not imply actual ownership of the shares. But what does it mean?
It means that everything is based on speculative activity permitted by CFDs, which are contracts that simulate the value of an underlying asset or security, in this case Amazon shares.
Precisely for this reason there is the advantage of earning even when the shares go down, but above all, thanks to this tool, it is possible to negotiate even with small investment capitals.
If today I wanted to buy 10 Amazon shares in the bank by traditional means. How much would it cost you? More than 18 thousand euros. And 10 shares are not many, indeed, they are very few.
You would have to wait years to make money with such an investment. If you buy them at a value of 1500 euros per share. If the following year the price increased by 100 euros then it means that you have made a profit of 1000 euros … Not much.
And what happens if the price drops? Go at a loss immediately. This is why CFDs are convenient. If the price drops, just close your buy position and open a sell one. Online to do this takes 10 seconds, literally 10.
Furthermore, you can have total control over any losses in your trades, just set up a Stop Loss (read the guide here).
But where can you start trading Amazon shares with CFDs right away? Find out in the next paragraph!
Where to trade online on Amazon?
Are you convinced and want to trade Amazon shares? Did you know you can start right away? We are about to introduce you to 3 licensed and secure brokers that allow their clients to trade Amazon shares and many other financial assets and stocks.
The great advantage that each of them offers is a great ease of use of the platforms where you can buy and sell securities. But beyond this we must not forget that online trading is practically free.
All major brokers do not charge trading fees and therefore can be opened and closed at will, without worrying about it becoming too expensive.
Does it all sound too good to be true? In reality, they are nothing more than the advantages of modern trading tools now available to everyone on the net, even on applications that can be managed by smartphones.
But no more chatter. Let’s get to know the best brokers where to trade on Amazon shares, they are:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
Amazon shares trading with ForexTB
Who is ForexTB? Simply the broker recognized as the best in Europe by many experts, analysts and simple users.
What we like most about ForexTB are its safety and quality guarantees. It is a licensed broker regulated by Consob and CySEC.
Thanks to the prestige achieved over the years, ForexTB has become a commercial partner of important European companies including Juventus, for which it has been returning as an official sponsor for years.
We often feature ForexTB in our guides for one main reason: it’s an inclusive broker who has built a site and platform that can accommodate traders of any level of experience.
Its platform, the news it offers, the analysis and training tools, the videos and much more available on the site is material offered free to all new subscribers.
Click here to visit the official ForexTB website.
Here are two exclusive services that can greatly help you trade on Amazon on the broker’s platform in question:
- Amazon Trading Signals: Some excellent market experts and external analyst firms team up with ForexTB for the purpose of analyzing the financial markets and offering trading signals useful for trading to ForexTB clients. Trading Signals are notifications delivered via email, text message and on the platform that contain instructions on how to invest in Amazon and many other financial assets. Click here and discover the ForexTB signals service, it's free!
- Trading course: in addition, for users who like to trade manually, there is a free way to perfect their technique and it is the ForexTB trading course. This course is especially suitable for beginners who want to understand how to trade Amazon shares. You can also get the course right away by clicking here.
Copying who trades Amazon shares: eToro
Are you a beginner and don’t want to learn to do analysis on the Amazon stock to earn? Very well then eToro is the broker for you.
Thanks to its innovative Social Trading system available on its platform, it is possible to trade by automating processes. You can do it all by simply copying other professional eToro users.
How does eToro Copy Trading work?
Copy Trading is a function that allows eToro users to invest quickly and securely by copying the operations of other investors.
eToro users have a pool of over 4.5 million traders to choose from. Just open a free account, transfer funds to it through one of the available payment methods and search for the best Popular Investors (Top Traders).
eToro Copy Trading gives you the opportunity to copy the operations of Top Traders while maintaining full control over your account. You can stop copying a trader at any time.
The automatic Copy Stop Loss function provides an additional tool in the hands of the investor. Automatically set to 40%, the CSL will automatically stop when the copy value is reduced by 40%, returning the remaining funds to the user’s balance.
Making Copy Trading does not just mean copying the most experienced investors, but learning the strategies and improving. To identify the reference traders eToro provides a convenient search tool called “Guru Finder”.
In short, you just have to sign up for eToro and take advantage of this fantastic opportunity to trade on Amazon shares, click here and go to the eToro platform.
Trade.com, stock market broker
Trade.com is the third and final broker we can recommend for trading Amazon shares. In fact, in terms of reliability and security, it is on the same level as the previous 2 brokers.
We recommend Trade.com because it is also a broker devoted to ease of use and this can be seen in all its services. But more than anything else it is the attention to the needs of its customers that makes the difference at Trade.com.
This broker is also excellent for trading stocks. It has a lot of choice among the most important stocks in the world. By choosing Trade.com, you can opt for US equities, the London or Tokyo stock exchanges, everything is up to your needs.Click here to visit the Trade.com website
Infos for investing in Amazon
Now that you know that trading on Amazon is worthwhile and you also know the best platforms to do it, what’s missing? What is needed is a more in-depth knowledge of the company, to understand what leads it to grow and be able to make precise predictions on its performance.
In order to collect as much information as possible on Amazon, it is necessary to do what in technical jargon is called: corporate fundamental analysis.
It is a process that studies the company itself, the ecosystem in which it lives and all the pillars that support its growth. In this way, you really become able to accurately read the past, the present and possibly also the future of a company.
Here are the parameters you need to study (but don’t worry because in this case we have already done the study for you and we will present it in the next paragraphs):
- Amazon budgets
- Business model
- Internal management situation
- Future development plans
Evaluating a balance sheet means examining the items of income, expenses and net profits of a company. This helps them understand the quality of their financial life.
The case of Amazon, of course, is emblematic in this sense as the company year after year has done nothing but increase its profit in the face of ever-increasing expenses.
2018 was a turning point as it broke through $ 2,000 per share for the first time in the stock and the company was on its way to becoming the second, after Apple to exceed $ 2,000 billion in valuation.
The balance sheets of Amazon, therefore, are in perfect health.
Read also: Money Management
Amazon Business Model
Amazon has long since turned into a financial giant that works on the model of any other multinational. But what does it mean?
Its enormous expansion, which shows no signs of stopping, is given by the constant acquisitions of other companies in sectors where in the past it did not even dream of operating.
The days when Amazon only sold books and used ones are a long way off. By now the company has become a very important player in the media, electronics and much more.
At the moment the strongest fields of expansion are “food” and transport.
In the first case, Amazon is buying stakes in companies like Deliveroo, in the second, Bezos announced the construction of the first Amazon-owned airport in order to control the supply chain and cut costs.
As for the competition, Amazon looks almost everyone from top to bottom. But in order to trade on its shares it is always important to understand who the competitors are and what choices they make to try to stay in the market.
As for Amazon’s prime niche competitors, we have Wish and Alibaba. Two companies that operate in the marketplace sector but which, in the first case are still too small and in the second have grabbed a completely different market: the eastern one.
Competitors “closest” to Amazon’s current business are many other companies that are affected by the expansion of the Bezos giant. Here is an exhaustive picture:
- Media Production: Amazon here competes with eBay, Comcast, Netflix, Sky, Time Warner Cable, Apple (with the iTunes service), Disney, Google (with its PlayStore) and media producer Liberty Interactive.
- Distribution Fund: Amazon has several competitors in the electronics and merchandising sector in general, including: LightInTheBox Holding Co., Overstock.com, PCM, Vipshop Holdings, JD.com, Wayfair Inc. and Zulily, Best Buy, RadioShack, Staples, Target, Walmart, Sears, Big Lots, Delia and Systemacs.
- More broadly, Amazon competes with many of the world’s largest companies including CDW, PC Connection, Insight Enterprises, Oracle, salesforce.com, SAP, Accenture, and Citrix Systems.
Few are aware of it, but many companies and websites that we use every day, or that the American public often use, are now owned by Amazon:
- IMDB: movie website, one of the largest in the world
- Alexa.com: company that collects browsing data
- Audible: audio entertainment company
- Zappos: one of the leading footwear and apparel website in the world
- Annapurna labs: Israeli chip maker
- AbeBooks: A company that deals with tracking down rare or used books
- Goodreads: online community of people interested in reading
- Twitch.tv: The world’s leading video game streaming platform
- Amazon Robotics: Robotics company, formerly known as Kiva Systems
- Whole Foods: Amazon owns a chain of organic products
Internal management situation
To understand the health of a company it is essential to also look at internal management issues. This also applies to the staff, at all levels.
Unfortunately, Amazon is not a company where the work situation is idyllic and there are complaints at all levels. To achieve the high quality standards in customer care and speed in deliveries, employees are sometimes forced to do things out of the ordinary.
However, this is not a factor that impacts too much because they are often easily replaceable personnel. In the future, then, automation will lead to a drop in the number of employees in the company, partially eliminating the problem.
Read also: Buy Netflix shares.
Finally, here’s a look at the future. The company’s development line has already been drawn. In the future, the acquisitions of new companies will be more and more and all will contribute to the growth of this huge organism.
If we look at the next 10 or 15 years, we can confidently say that Bezos will lead his creature towards ever more massive automation.
The days are not far off when parcels at home could be delivered by drones and huge warehouses being dominated by robots.
Moreover, the company continues to invest in research and development in an impressive way. There are many patents registered by Amazon some of them concern new delivery systems, facial recognition and new software.
Amazon’s presence in food and electronic payments will be increasingly important, but there are also projects such as Amazon Go with cashless supermarkets and expansion in the streaming sector.
Amazon Conclusions: velds at 500%
Why do we feel so confident when we say that Amazon is a great investment and that trading Amazon stock may turn out to be the biggest deal of the next 20 years?
The answer is simple. Just ask yourself what other financial asset has brought returns of 500% to investors and traders in less than 5 years? The answer is none!
Only Amazon has succeeded in this.
In the course of our guide we have seen that Amazon stock trading is now open to everyone. The main brokers such as ForexTB, eToro and Trade.com allow you to start testing even with less than € 200 to invest.
In addition, they have Demo platforms where you can do trading simulations with virtual balance money!Click here to join the ForexTB platform now and invest in Amazon
The best option is to choose a Broker with CFD contracts to buy / sell without any commission.
Yes, by choosing brokers who operate with CFD contracts (contract for difference)
Absolutely not, banks charge fixed commissions and execution times are slow.
In Europe, the most successful Broker is eToro, also useful for investing automatically by copying the best Traders.