AMAZON (AMZN) Stocks
📊 Amazon.com Inc. is a multinational company that provides digital streaming, artificial intelligence, cloud computing and e-commerce to hundreds of millions of customers across the globe.
📊 The company has over 560,000 employees, 2 million sellers, hundreds of thousands of authors and developers. Amazon is one of the largest internet companies in the world and one of the largest employers in the United States. The company’s head office is in Seattle, Washington.
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OVERVIEW OF AMAZON
- First incorporated in the state of Washington in 1994 and reincorporated in Delaware in 1996, founder and CEO of Amazon, Jeff Bezos, creates the first online store in July 1995 and clients could now buy books with the click of a button.
- The company has its initial public offering on the 15th of May, 1997, and starts trading on the NYSE. Amazon’s portfolio soon expands and software, music, games and movies are added to the list of products that customers can buy online.
- Through the next couple of years, other companies are purchased to expand Amazon.com . A few of these are Kiva Systems in 2012 and Whole Foods Market in 2017.
VISION & VALUES OF AMAZON
- Offering low prices and speedy delivery services world-wide on millions of items, Amazon’s mission is to provide the best customer service. It’s essential for Amazon that its shareholders understand its approach when it comes to decision making. Amazon’s promise, beliefs and principles make customers their focal point, making long-term investments that will benefit their customers and therefore, consequently, benefiting their investors.
- Amazon has won numerous awards, including being ranked number 1 out of 100 most visible United States companies in The Harris Poll Reputation Quotient (with over 25,000 consumers) in 2016 – 2018. This means that the general public voted Amazon best when it comes to social responsibility, emotional appeal, products and services, vision and leadership, financial performance and workplace environment.
- For eight years in a row, customers voted Amazon number 1 in The American Customer Satisfaction Index and in the United Kingdom Customer Satisfaction Index, customers voted Amazon number 1 for the fifth time in a row. Amazon is also number 1 on LinkedIn’s 2018 list of Top Companies which categorize most
desirable companies to work for.
- In 2016 Amazon.com was the leading corporate purchaser of renewable energy in the United States. The use of 100% renewable energy in all their business branches is a long-term goal.
MARKET PERFORMANCE OF AMAZON
- Amazon.com trades on the New York Stock Exchange under the stock symbol AMZN.
- Data analysis for Amazon’s first quarter results ending the 31st of March 2019, shows an operating cash flow of $34.4 billion, an increase of 89 percent.
- Free cash flow is $23 million and net sales is $59.7 billion. Forecasts for 2019 shows Amazon stocks has the potential to be of great value to investors.
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LATEST NEWS ON AMAZON
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy AMAZON Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN AMAZON STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE AMAZON STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of AMAZON stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy AMAZON stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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