From an online bookselling business in 1994 to the largest eCommerce conglomerate today, Jeff Bezos’ Amazon has come a long way over its 28 years of existence. Amazon Inc. is currently valued at over $1 trillion with over 200 million members worldwide, and this is thanks to the company’s commitment to making every product easily available to consumers.
Aligning with this goal is the company’s recent action on its publicly traded stock, AMZN. Previously valued at over $2700, Amazon announced a 20-1 stock split, placing the value of each individual stock at a more affordable rate of $125 per share.
Of course, previous holders had more shares assigned to them to match the value of their investments.
There is a whole lot more about buying and selling Amazon stock. This article presents you with all you need to know, including
- AMZN stock forecast
- What to consider before buying AMZN, and
- Where to buy Amazon stock. Let’s get right in.
AMZN Stock Forecast
| Year | Average Stock Price |
|---|---|
| 2021 | $137 |
| 2020 | $167 |
| 2019 | $134 |
| 2018 | $89 |
| 2017 | $82 |
The company raked in over $117 billion in revenue in Q1 of 2022. Additionally considering that AMZN value has risen by over 125% in the past 5 years, it is understandable why you may want to buy or invest in it.
Thankfully, the AMZN stock forecast indicates that its value is still expected to keep rising in the near and far future.
Analysts like CNN Business and Tipranks point to AMZN hitting over $170 per share before mid-2023. With the price currently at $122, this represents a 40% increase in value.
From this AMZN stock forecast, we may say that the market is favorable for a buy. However, when buying stocks, nothing is set in stone and other factors come into play.
Factors To Consider While Buying AMZN Stock
Some of the other actions you want to carry out before pulling the trigger on AMZN stocks include making research on the company, comparing your investment goals, and choosing how to diversify your portfolio. For proper understanding, all these will be explained further.
Make Research On Amazon
Before relying on an AMZN stock forecast, and you need to do your own research (DYOR). This research doesn’t require digging up information from a customer perspective (like rating on customer service) but requires searching for information that concerns investors.
These pieces of investor-savvy information include details on historical price actions and what affects the price of AMZN stocks both negatively and positively. They also include Amazon revenue, net income, and even details of who is a member of Amazon management. All these reflect the health of the company.
One last thing to look at is the performance of Amazon competitors and how they affect the price of AMZN stocks. A few of these competitors include eBay, Walmart, and Alibaba, among others.
Once you make appropriate research on Amazon, you then proceed to make research on your own portfolio.
Consider Your Budget And Portfolio
One thing about investing in stocks is that trades are held over a long period that usually stretches over a year or even years. What does this mean for you?
Investing in Amazon means you take out some money that you probably won’t have access to for over a year. Looking at the price of AMZN, you want to figure out how much you can take out of your pockets to make some measurable profit without needing the money invested in the short term.
Now, in addition to your budget is considerations about your portfolio. Putting all your money into Amazon isn’t the best investment strategy, regardless of what the AMZN stock forecast says. This means, whether, through mutual funds or individual decisions, you also look for other assets to invest in to diversify your portfolio.
Choose An Online Broker
You need a brokerage account to trade stocks, and probably the easiest way to get one for yourself is to use an online broker. An online broker is a regulated trading platform or provider that gives you a platform to execute investment transactions through digital means.
There are thousands of brokers, so you must be careful when picking one to manage your trades.
The best online brokers are the ones that make your stock (AMZN) available to you, charge little to no commissions on investments, and also provide you with all the necessary tools to analyze charts and manage your trades. Some even allow you to buy fractional shares if you don’t have enough money to buy full shares.
Compare your needs to what an online broker offers and make your choice. Once you have a brokerage account and analyze your portfolio needs, it is time to purchase Amazon stocks.
Buy AMZN Stocks
When dealing with online brokers or trading platforms, buying Amazon stocks is completed within the blink of an eye. The only form of the delay stems from the research you need to make before deciding on purchasing the stock.
Now, there are multiple ways to purchase a stock, with the more popular methods including market orders and limit orders. Market orders are executed immediately and by the current market price, while limit orders are only executed when the share price hits a low-price target, you have set.
Market orders are for investors who want to get into the trade as soon as possible, while limit orders are for investors who have the patience to wait and get into the trade with the lowest costs.
Another method of buying AMZN stocks is through dollar-cost- averaging, where you purchase small amounts of stocks multiple times over standard periods. This helps to limit your risks of buying all your stocks at a high price.
Choose which method is best for your investment goals and get into AMZN stocks if they interest you a lot.
Conclusion
Looking at the general AMZN stock forecast, buying Amazon stocks could be one of the best decisions an investor may make. Nonetheless, other factors, like your investment goals, budget, portfolio, and information on competitor performance, determine whether your investment is good or not.
