Amazon is more than an ecommerce site. If you are a trader and want to invest in Amazon stock, it is possible to buy Amazon stock. Investors now support founder Jeff Bezos business strategy. Amazon stock price has risen more than 1500% over the past few years. How do you invest in Amazon stock stock? Let’s talk about Admirals today!
Amazon stock history. Nasdaq: AMZN
Amazon first listed shares on NASDAQ under the code NASDAQ/AMZN in 1997 at a price of 18 USD/share. The company became the second to exceed $1 trillion in market capitalization, on September 4, 2018, becoming the second in history. How much is Amazon stock today? Around $3,300!
Did the trader know Jeff Bezos had originally called the company Cadabra with the magical phrase “abracadabra”. It is a digital bookstore. Changed shortly thereafter because many people mistaken it for similar words like corpse. The first company to appear on the list was Amazon!
Amazon is fast becoming the global leader in e-commerce and has almost taken over this industry. Its rivals don’t have enough safety to grow market share or compete with Amazon.
Amazon still has two disadvantages that need to improve:
1. Financial situation: Amazon is experiencing financial difficulties. This could have a negative impact on profit margins. Shareholders are also extremely concerned about Amazon’s financial metrics.
2. The online retail market is gaining market share. Amazon’s virtual monopoly on online commerce has been repeatedly condemned. If new antitrust laws were enacted, it could pose a political risk.
Amazon’s advantage is not investing in physical stores, which makes it more competitive than traditional competitors such as Wal-Mart or Target, Sears, Macy’s and Wal-Mart.
Amazon’s business strategy allows them to save time and money while focusing 100% on their customers.
Amazon warehouse management system helps them achieve competitive prices on all their products. The trade chain is crucial for traditional competitor businesses. To make the product prices go up, there are many costs.
Amazon has successfully changed consumer habits. While Amazon understands the difficulties/challenges of transactions, it also gives consumers time to adapt.
Macy’s Sears, Macy’s Wal-Mart Wal-Mart Target Nordstrom and other brick-and-mortar rivals have underestimated the growth of online commerce. They partially ignore the advantages and benefits of the Internet, such as the low density in commerce in the United States and the link between the competitive markets and households’ purchasing power.
Amazon Stock Price & Jeff Bezos Strategy
Jeff Bezos, the CEO of Amazon, quit in July 2021 after 27 year of service. Instead of focusing solely on online business, he started a diverse business model that encompasses many other fields.
Amazon Cloud Web Services
Amazon Music Online Music
Amazon Fresh food delivery
Kindle eBooks and Kindle Fire tablets, Echo speakers, and other tech devices
Prime Video is the place to watch both short and long films
Amazon Prime is a subscription service that allows customers to reduce their subscription costs and builds customer loyalty. It offers priority access to music and video, on-time delivery and the most current real-time promotions. Actual time.
The company bought Whole Foods in 2017 to enter the retail sector. The company now owns 450 physical stores. It delivers Whole Foods products to customers’ houses, along with Amazon Fresh.
Nasdaq AMZN Amazon’s Financial Situation
Before you decide to buy Amazon stock, let’s look at Amazon’s financial situation using Admirals.
Amazon’s revenues grew rapidly due to business diversification. Amazon Comprehend will process medical data. The company also plans to acquire PillPack online pharmacy.
Amazon’s operating profit margin has begun to fall at alarming rates – from 5% to 0.2% in 2009, and 5% to 5% to 2009. After a rough run in 2014-2017, Amazon’s operating profit margin has dropped. Back to 2009 high, it was 5.3 in 2018, 5.2% in 2019, and 5.7% 2020. This rate has reached 6.2% by the end September 2021.
Jeff Bezos has a diversification strategy that focuses on healthcare, pharmaceuticals, and is designed to stabilize and increase operating margins. Investors and traders who wish to buy Amazon stock are encouraged by this development.
Despite Amazon’s growth in revenue, it is struggling to make good profits. This can be clearly seen in the EPS (Earnings-Per-Share) between 2012 and 2014.
Although Amazon has seen a significant increase in earnings per share over recent years, some investors feel that this is still below the ideal level.
Amazon is more concerned with increasing market share than making short-term profits. The financial market is still not aware of this trend.
Amazon stock can be considered a fast-growing stock. For the moment, it is better to focus on cashflow growth from operating activities and not profit growth.
Amazon Corporation can expand its operations by increasing cash flow. Now shareholders don’t have worry about this. They can rest easy knowing that poor treasury administration is what leads to most companies failing.
Jeff Bezos stressed in his April 2019 letter to shareholders that he is looking to accelerate Amazon’s diversification by investing more in companies that have great potential through “ventures”.
It’s simple. Invest in many high-potential companies, but only one company will be successful and make enough money to repay all of your investment and make a profit.
This idea provides investors with peace of mind that Amazon has medium term earnings prospects.
Amazon ticker: Jeff Bezos no longer serves as Amazon’s CEO
Amazon announced that Jeff Bezos (its founder and CEO) would not resume his position as CEO in the early 2021.
He is not completely independent of the company, however. In fact, he will remain as CEO until the third quarter in 2021. Andy Jassy will succeed him as CEO of Amazon Web Service.
One can easily say that Jeff Bezos’ exit comes at the most beautiful moment in the history the business he started. How does this news impact Amazon’s stock price today?
We will be combining technical analysis Amazon stock ticker in the next section so traders can better understand the current situation before making a decision to buy or not Amazon stock.
Amazon stock chart (AMZN stocks chart)
After understanding the company’s performance we examine its performance on stock market to determine if this is the right time to purchase Amazon stock.
Amazon stock is trending upward in terms of long-term investments. This significant trend has many key moments that traders need to keep in mind:
It has fallen 36% from its peak in September 2018. This was to create an uptrend line that started in February 2016, (the black line). This was due to lower sales than the market expected in the company’s third-quarter of 2016. However, Amazon shares have been adjusted to a reasonable value.
Amazon stock price corrected through January 2020. It has now surpassed all previous historic highs. Amazon’s stock market dropped 26% because of the Covid-19 crisis.
Amazon stock prices quickly recovered after that and reached an all time high of $3,546 per shares on September 2, 2020. That’s 118% more than the previous record. The price rise was caused by consumers being “forced”, during months of isolation, to purchase online. This led to positive predictions by analysts, which were supported by financial results.
Since then, the price has increased slowly, with daily highs and lows, until it reached a new historic high (highest to date) in July’s second week, closing at $3573. Amazon stock was above a green uptrend line (green), as of November 3, 2021. It is currently around $3,300.
For short-term investments in Amazon stock, traders need to look at trading charts that are shorter than the daily chart.
If we are able to find a technical analysis that isn’t too thorough on Amazon stock, then we can see how the Amazon stock price could enter a siderange after the September 2, 2021 high and continue its upward trajectory until March 2021. The green trendline indicates that the price is on the rise. The session was closed on July 8th with a historical maximum at $3,740.
After that, the trend began unraveling. Why? We can add a fundamental analysis to this. Amazon announced its second quarter results, which were lower than anticipated. This was reflected by the large gap on the chart.
The stock price of Amazon is currently below the 20/50, 100, and 100 week moving mean, which indicates that there may be a downtrend. However, it should be noted that November is an important month for Amazon. Black Friday and Cyber Monday will be celebrated and the Christmas shopping season begins. Can it reverse the stock market uptrend?
Should you purchase Amazon stock
Amazon’s growth potential is still evident, but it is also a company that draws attention due to its size. But is Amazon investing profitable?
Prior to the pandemic many people were looking at what was happening around Amazon’s free competition. This seemed to have been hampered due to its close proximity. Amazon has monopoly status.
The coronavirus outbreak has however changed everything. Amazon’s success in meeting customer demands and setting the bar for online shopping seems to be unaffected. It is becoming a common trend to prefer online interaction over in-person ones.
This was evident in the company’s excellent 2020 results. With the removal of restrictions on the expansion coronavirus in 2021, their numbers have declined but will continue to grow. This all reinforces the idea people are planning to purchase Amazon stock.
Last but not least, we must consider the stock split by Tesla and Apple at August 2020. Their stock price is high and they made this move to attract many investors. more private.
Amazon stock prices are currently at around 3,300 USD. This price is very expensive for investors who want to buy Amazon stock. Will you split your shares?
