Amazon is one of the most popular companies in the world. In this guide, we’ll introduce you to a step-by-step guide on how to buy Amazon shares and why you may want to consider this global giant for your investment portfolio.
What is Amazon?
Amazon is an American company established in 1994 by Jeff Bezos. Initially, Amazon specialised in selling books online. Over time, the company has grown and now provides a broad array of products and services. These include not just e-commerce, but also video and music streaming, cloud computing, and electronic devices.
The company became profitable in 1998 and has continued to grow and enter new markets. Some of these areas are:
- Music (1998)
- E-books (2000)
- Fashion and clothing (2002)
- Food delivery (2004)
- Video games (2004)
- Hardware (2007)
- Software (2008)
- Amazon Prime (2005)
- Fast food restaurant delivery services (2015)
- Smart home devices like Amazon Echo (2014) or Alexa (2016)
- Drone delivery (2016)
- Furniture (2017)
- Healthcare (2018)
Today, Amazon is counted among the major technology companies, along with Alphabet (Google), Apple, and Meta (Facebook). It is known for transforming existing industries by using advanced technology and being able to operate on a large scale.
General information about Amazon
- Company name: Amazon.com, Inc
- Ticker: AMZN
- ISIN: US0231351067
- Listed on: Nasdaq
Who is Jeff Bezos?
Jeff Bezos is the founder of Amazon and is considered one of the richest people in the world.
Jeff Bezos-Executive President of Amazon
Here are some key points about him:
- He was born in Albuquerque, New Mexico, in 1964.
- After graduating from Princeton University, he worked on Wall Street before starting Amazon in 1994.
- He served as the CEO of Amazon until 2021, when he stepped down to focus on his space-related projects. He owns The Washington Post newspaper and the space company Blue Origin. Blue Origin aims to advance space exploration and competes directly with SpaceX, which is owned by Elon Musk.
- His net worth is estimated to be more than 100 billion dollars.
- He is among the top 5 richest people in the world.
What role does Bezos have at Amazon now?
After stepping down as CEO, Bezos took on the role of Executive Chairman at Amazon and remains the company’s largest shareholder. While this role is largely ceremonial, it allows him to continue as a prominent figure in the company and helps maintain the value of its stock.
Who is the current CEO of Amazon?
Andy Jassy is the current CEO of Amazon, taking over the role in July 2021. Jassy has been with Amazon since 1997 and previously led its cloud computing division, Amazon Web Services (AWS), from its inception.
Andy Jassy-current CEO of Amazon
How to buy Amazon shares in five steps
To invest in Amazon, you must follow the steps listed below:
- Create an account with a well-regulated broker (some are mentioned in the section below)
- Access the broker’s trading platform.
- Search for the stock: We can do it both by writing the name of the company (Amazon) and the ticker (AMZN), or even the ISIN (US0231351067)
- Select the number of shares you want to buy.
- Customise your order (such as order type) and send the order.
Where to buy Amazon stocks in the UK?
Here are some options to buy Amazon stocks in the UK:
|Commissions for buying Amazon shares||£0||£1.75 + £1||£0||£0|
|More information||IBKR official site||DEGIRO review||eToro review||ActivTrades official site|
What’s the minimum amount of Amazon shares you can buy?
If you choose eToro to buy Amazon stocks, there is no minimum limit you need to buy. The broker allows you to invest as little as $10 in stocks, so you can buy fractional shares.
How much will Amazon pay in dividends in 2023?
Amazon has never paid dividends to its shareholders since going public in 1997. There is also no clear information about whether the company will start paying dividends soon. Investing in Amazon is mainly for those who want to share in the company’s growth and believe in its long-term prospects.
As for dividends, it’s uncertain when or if they will be distributed. Many technology companies prefer to reinvest most of their profits in research, development, and acquiring other businesses.
For new investors, our comprehensive beginner’s guide to dividends in the UK may be helpful.
Is it safe to Invest in Amazon stocks? | Avoiding scams
Online, there are various scams that falsely advertise ways to buy stocks or invest in appealing financial assets. Amazon is not immune to fraudulent practices; scams often misuse its well-known brand to deceive people with fake offers.
However, if you follow proper steps, investing in Amazon stock is safe. Make sure you do your due diligence before selecting a broker and understand all the investment-related risks before investing your hard-earned funds.
Why should you consider buying Amazon shares?
Investing in Amazon stocks could be worth considering because of the company’s diversified business, continuous innovation, and strong market presence. Amazon operates in multiple sectors, from e-commerce to artificial intelligence, making it more resilient to market changes.
Amazon operates in several different areas:
- E-commerce: Amazon’s primary business is its online retail platform that sells a vast array of products and services, from books to electronics.
- Video and Music Streaming: Amazon provides video and music streaming services via Amazon Prime Video and Amazon Music, respectively.
- Cloud Services: Amazon Web Services (AWS) is the company’s cloud computing division, offering various services like data storage and processing to businesses and organizations.
- Electronic Devices: Amazon manufactures and sells devices like the Amazon Echo smart speaker, Kindle e-readers, and Amazfit smartwatches.
- Delivery Service: Amazon has its own package delivery network, which has grown quickly and helps make its e-commerce operations more efficient.
- Artificial Intelligence: Amazon invests in AI technologies such as its virtual assistant Alexa, which is incorporated into many different devices.
- Online Pharmacy: Amazon recently entered the online pharmacy sector by acquiring PillPack, a service that delivers prescription medications directly to customers.
- Supermarkets: Amazon has also acquired the Whole Foods supermarket chain, which has allowed it to expand in the food sector and compete with other giants such as Walmart.
- Automation: Amazon has developed a series of automation technologies to improve the efficiency of its storage and delivery operations, such as the Kiva robots.
Amazon shares performance | How much are they worth?
Amazon shares are traded on the New York Stock Exchange (NYSE) under the ticker symbol AMZN. For many years, Amazon has been one of the top 10 largest companies in the world, which has generally resulted in an increasing stock price. This trend continued until the end of the pandemic in early 2022.
Understanding Amazon’s stock split
In June 2022, Amazon conducted a 20:1 stock split. This meant that for every share of Amazon, investors received 20 additional shares. The stock price dropped from around $2,000 to approximately $124 as a result. A stock split doesn’t change the company’s total market value or an investor’s total ownership in the company; it just increases the number of shares available and makes each share less expensive.
Amazon also announced a 10-billion-dollar stock buyback. The board of directors stated the split would provide employees greater flexibility in managing their Amazon wealth and make shares more accessible to potential investors.
Top 10 companies in the world
As of this writing, Amazon ranks among the top 10 companies worldwide in terms of market value. Other companies in the top 10 include Apple, Microsoft, Google, Meta (formerly Facebook), and Tesla.
Amazon consistently innovates and adapts to market changes. They’ve pioneered drone deliveries and developed artificial intelligence technologies like the Alexa virtual assistant. Amazon also invests significantly in research and development, particularly in robotics and automation.
Experts’ opinions on Amazon stock
Many investors and analysts consider Amazon a sound long-term investment due to its dominant role in e-commerce and continuous innovation. There’s a generally positive consensus about the value of Amazon stock, with most opinions indicating a buy recommendation.
However, as with any investment in the stock market, there are potential risks when buying Amazon shares. For example, the company could face increased competition, changes in government regulation, or internal management problems that could negatively affect its financial performance.
This is not investment advice but rather a summary of opinions from other professional investors.
If you’re interested in community opinions on Amazon stock, financial forums like Reddit, Yahoo Finance, and Seeking Alpha offer varied perspectives.
Which companies are competing with Amazon?
If you already own Amazon shares or are considering other options, companies like Apple, Microsoft, and Google are also strong contenders in the tech industry.
Buy Amazon shares: summary
In summary, while Amazon has grown significantly since its rise in popularity around 2014, many believe it’s not too late to invest. The company has shown a pattern of stable growth and seems poised for a strong future.
How profitable is it to buy Amazon shares?
The profitability of buying and selling stocks in general always depends on the price at which the stocks are bought and sold; you should take into account the macroeconomic and market conditions and the company’s ability to maintain its competitive position.
How much does Amazon pay in dividends?
Amazon currently does not pay dividends to its shareholders.
Why did Amazon shares drop so much in 2022?
As a business model based on e-commerce, Amazon was negatively affected mainly by inflation and the consequent change in monetary policies of most central banks in the world (which affected the stock market in general), as well as by the increase in competition in the market. In addition, the company faced criticism for its labour practices and its tax policies.