Why Should I Invest In Amazon Stocks?

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Why Should I Invest In Amazon Stocks

Amazon.com Inc. is one of the most prestigious tech companies in the whole world right now, and it’s being led by none other than one of the world’s most popular billionaires – Jeff Bezos. 

Jeff Bezos’ business has got everything you could possibly think of, ranging from the world’s biggest e-commerce website to one of the leading TV & Movies entertainment platforms, to their own shipping companies, airlines, artificial intelligence, and even their own space exploration company called Blue Origin

Stock Exchange Basics & How To Invest In Amazon Stock 

For beginners, it doesn’t take much to get into the stock exchange investing game. All one needs to do is a little research about stock exchanges and how they differ from one another. This will allow potential investors to find the most beneficial trading platform in order to cater for their personal preferences. Whether you’re looking for the cheapest investment fees or the fullest, most detailed user interface to get as much information as possible. It’s only a matter of what platform you’d like to use or which you think would be best for you. Then, once you’ve set up your account and verified your identity, you can invest in amazon $250, or however much you’d like. We suggest investing 250 as a minimum, as anything less would see too little significance in price fluctuations.

A Brief History Of Amazon’s Success As A Company

After being founded in 1994 in Bellevue, Washington, Amazon was initially released by Bezos, who at the time was a Wall Street executive, as the first-ever place where users could buy any books they’d like and have them accessible anywhere they like. The name was picked out due to being associated with the South American Amazon River, as well as having the first letter of the alphabet as its starting letter. One of the most remembered factors from this time was their unique slogan named “Get Big Fast,” which was written on all the employees’ shirts.

The company, later on, grew massively and expanded into numerous other industries within the e-commerce sector, becoming a one-stop shop for almost anything. By the year 1997, AMZN stock was listed on the NASDAQ Global Select Market and was making over $140 million in yearly revenue. Just a year later in 1998, the company was generating $610 million in revenue, which was almost 500 million more than the prior year. 

Even though the website was growing at a massive rate for the time, people were still sceptical about certain aspects of the company. Investors didn’t really have much trust in the company and some even referred to it as a “ticking time bomb”, assuming it might fail the market as time passes, due to bigger, stronger companies at the time like Noble, Borders or even Barnes competing in the international book trade, even though none of the companies had any presence on the internet.

Until 2001, the company barely made any profit, as all the revenue generated was being re-invested into making the company bigger and bigger. This led the critics to stand by their judgement and kept Amazon on the unwanted list within the world of stock exchange-listed companies.

Bezos’ opinion on these early-age fudders was rather simple. He said that they had no idea about what potential the internet had, and he also emphasised the massive opportunities the internet was about to bring along with it. Little did the naysayers know that AMZN would become one of the biggest stocks they would ever miss out on.

Amazon And How Their Stock Fairs Nowadays.

Nowadays Amazon has placed its creator, Jeff Bezos, within the top five richest entrepreneurs on the planet, with over 161 billion US Dollars in net worth. The revenue that Amazon.com is generating annually has reached an all-time high in 2021, with around 470 billion USD. Somehow, the company just keeps on growing and reaching new heights, even when we think it can’t possibly become any bigger.

Over the past couple of years, the stock market has seen a drastic change in mentality due to the coronavirus pandemic, which really played a major role in changing the way we live our everyday lives. 

The stock market and wall street know very well that current events have a massive impact on the biggest companies in the world, and therefore they put a lot of thought into whether or not they should sell or keep their stocks in Amazon. This was all because of fear of recession, making people believe that there might be a chance that e-commerce would die down due to a potential impact on retail spending.  This has led to a sell-off which bumped the stock price down by around 30% since its all-time high which was reached in July 2021.

What does this mean, though? Is Amazon stock looking at a downhill, dwindling future up to the point where the company is no longer worth even thinking about investing in? Or was it just a little hiccup along a much longer, high potential road? Well first, let’s look at the concrete details. 

Amazon is not the only high-market cap stock that took a hit in the past few months. Many companies have taken hard blows due to the recent global events, and this has led to a drop in almost the whole investment market. This does not mean however that any of the companies that took a hit have any risk of failure or bankruptcy, in fact, quite the opposite. Many companies have already fully recovered from their COVID slumps, while others are taking their time. 

One thing we know for sure is that Amazon was, is and will always be one of the most popular go-to e-commerce websites to buy anything online and have it arrive in a short period of time. Amazon will always be one of the prime TV streaming platforms, as well as one of the most popular gaming partners in the global entertainment market. Bezos has built an empire which is going to take a lot more than a virus pandemic to kill, and therefore people should not lose trust in buying their stocks.

Considering the rate of growth which we have seen in the past, as well as all the expansions and new products the organisation is working on to grow, improve and increase its global reach, Amazon is one of the most promising companies on the planet, and it’s going to be a while before we see any other company taking its place within the biggest, most successful companies on the planet.