If you are looking to invest in Amazon, in this complete guide I will show you how to buy stocks from Amazon and answer some of the common questions. Whilst there is no buy it now button, buying stocks in Amazon is nearly as easy as shopping on Amazon when your know-how!
The company’s success is rooted in making it easy for customers to quickly — and perhaps impulsively — buy products online, a service made more valuable by the COVID-19 pandemic. So many of us use Amazon as one of our first protocols for shopping, it has become the king of convenience.
Amazon joined the stock market in May 1997 with an initial offering of $18 per share, according to Investopedia: ‘A $10,000 investment in AMZN at $18 per share would be worth more than $12 million as of May 2020.’ As of writing Amazon (AMZN) has a market cap of 1.65T making it one of the 5 most valuable companies in the world. It’s no wonder so many people want to invest in it.
Note: This is not a recommendation to invest in Amazon, but rather an explanation of how to buy stocks from Amazon do it should you choose to do so. The reality in the stock markets is that no matter how well a stock has performed in the past, there’s never a guarantee of future performance. always do your research before investing in any stock.
Amazon’s Stock – is it worth it?
It is defiantly appealing to owning a stock that you interact with regularly but what you know about a company as a customer often doesn’t equal knowing it as an investor. Make sure you do enough research so that you are making sound decisions before any investment, this will help avoid future mistakes.
Heres a few key insights and tips to consider before buying stocks in to Amazon:
- Amazon is one of the many stocks that’s received a blue-chip status. In other words, this categorization means that the company’s stock is highly reliable. Typically, businesses that perform the strongest in the market earn that title.
- Take a look at their 10-K form to better understand their financial situation. This is a comprehensive report filed annually by a publicly-traded company about its financial performance. Don’t worry I’ll show you how to find this later in the article.
- Take note of the latest share price is this affordable for you? As of Jan 2021, Amazon was trading at $3293 per share (+74% vs last year) so it’s important to consider your long-term investment goals first.
- Do you have other stocks or will this be your first? Its always recommended having a wide investment portfolio this limits any losses to a minimum.
Want more investment tips check out this article – Investing tips for beginners
How to buy stocks in Amazon
So you’ve done your homework and have decided this is the right stock for your portfolio, now comes the easy part of buying the stock.
There are 2 ways in which you can buy stocks from Amazon. Firstly you can do it yourself instantly by opening your own brokerage account (see details below) or you can consult a financial advisor and they can do it on your behalf.
How to Buy Amazon Stock With a Brokerage Account
First of all, you are going to need an online Brokerage account. One of the many advantages of using an online brokerage account is that you are charged 0% commission fees and can handle trades yourself in the comfort of your home.
The online brokerage I prefer is Webull its commission-free and if you use the link below and finish opening your account within 24 hours you get 2 free stocks!
So even if you don’t plan on investing in Amazon today you can still walk away with free stocks from Webull. Of course, feel free to do your own research I simply recommend this product as it has a great deal attached to it and it’s commission-free.
Step 1: Open a brokerage account
For the purpose of this article, we will use Webull. Of course, there are many other online brokerage accounts available this is just the one I have chosen to use.
What is Webull?
Webull Financial LLC is a registered broker-dealer with the SEC, and a member of FINRA and SIPC. It’s a new investment app that allows you to make free trades across a variety of investments. Webull strive to keep its vast depth of news, real-time market data, analysis tools, and trading commissions completely free.
Open a Webull brokerage account between 12/01/2020-12/14/2020 and get 2 FREE stocks valued between $2.5-$250!
Step 2: Find Amazon Stocks
Once your account is opened simply search for Amazon (AMZN) or if you are on the desktop version of Webull you can go directly to this page (make sure you’re logged in).
It is good to do solid research before buying any stock and what the Webull website does really well gives you the full picture including full financial statements, past trends, and access to form 10k. See image below for instructions on how to do this.
Step 3: deposit funds and purchase
If you are happy and want to proceed then you can go ahead and deposit the required amount and purchase you stock. Make sure you are doing this during market trading times. Webull will tell you on the screen if you are after hours.
Step 4: Regularly review your position
You are not finished after you purchased your Amazon stock. Now it is key to monitor your investments. This basically means following your investment strategy. Ideally, you should be holding on to Amazon stock for the long term, so this may be that you check in on your investment once a quarter to see how its performing.
Another good practice to adopt would be to follow Amazon stocks using a app like Yahoo! finance, this will automatically send you updates on the stock performance and give you any related news. Meaning you can automatically keep up to date.
How to Buy Amazon Stock With a Financial Advisor
The main advantage of a financial advisor is in the name, advise. If you are looking to invest but are unsure then a financial advisor can help guide you and work with you on your financial goals. The downside is you won’t get the 0% commission fees that you get with an online broker so you really have to way up the pros and cons.
To buy Amazon stocks through a financial advisor you would just instruct them how many you want to buy and they would do this on your behalf.
If you want to learn how to invest without a financial advisor cost these articles might help:
Amazon Stock- Frequently asked questions
Here are some of the common questions in relation to Amazon stocks.
Does Amazon stock pay dividends to investors?
No, unfortunately not. Amazon should be considered as a growth stock. This means that you the increase of the stock share price would be how you profit from owning stocks in Amazon. Another good reason why this should be a stock held for the long term (5 years +) so that you can have the maximum profit from it.
When does it make sense to sell Amazon stock?
This very much depends on your personal circumstances and the circumstances of the stock. Some investors may sell shares when they feel that the company is no longer worth as much as what’s reflected in the share price. This is why you should keep up to date with relevant news of any stocks you own and check their financial status – making your decision to sell an easy one when the time is right.
Bottom line
Amazon is a trillion-dollar company that has performed exceedingly well since it came onto the stock market in 1997. Although past performance is nothing to go buy, Amazon has certainly had a consistent performance.
In this guide, I have shown you how easily you can buy stocks in Amazon but to do so with good research of your own and to make sure you don’t just buy one stock in Amazon but diversify your investment portfolio. This reduces any risk on the stock market.
What do you think? Will you invest in Amazon stocks? Let me know in the comments below.
Looking for more advice on which stocks to buy?
If you are looking for advice on which stocks to buy then its worth check out this article on Motley Fool Stock advisor.
Disclaimer: Whilst I am an investing enthusiast, I am in no way a certified expert. I have no formal financial education. I am not a financial advisor, portfolio manager, or accountant. This is not financial advice, investment advice, or tax advice. The information on this website is for informational and recreational purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. Do your own due diligence. Past performance does not guarantee future returns. I am simply sharing my own experiences and research.