How much is Amazon Stock? Amazon.com, Inc. is a multinational technology company, which engages in the provision of online retail shopping services. It operates through the following segments: North America, International, and Amazon Web Services (AWS). The North America segment is involved in the retail sales of consumer products including from sellers and subscriptions through North America-focused online and physical stores.
It also includes export sales from online stores. The International segment focuses on the amounts earned from retail sales of consumer products including from sellers and subscriptions through internationally-focused online stores. The AWS segment consists of global sales of compute, storage, database, and other services for start-ups, enterprises, government agencies, and academic institutions. The company was founded by Jeffrey P. Bezos in July 1994 and is headquartered in Seattle, WA.
How much is Amazon Stock?
You can buy Amazon stock through an online brokerage account. You’ll need to add money to the account and then search for Amazon stock within the brokerage’s platform. You can also buy Amazon stock through Amazon’s direct stock purchase plan.
1. Do your research into Amazon
There’s an understandable appeal to owning shares of a company you interact with regularly, but what you know about a company as a customer often doesn’t equal knowing it as an investor.
Don’t base your to-buy-or-not-to-buy decision on a stock’s past performance or current price. Instead, make sure that you understand what investing in Amazon really means. That can include digging into the company’s management, revenue, net income and earnings, as well as analyzing the competition. (Learn how to do stock research.)
Aside from those factors, you’ll want to consider whether buying Amazon stock is the right decision for your portfolio. The answer depends on your financial situation, current holdings and investment goals.
2. Decide whether you should buy Amazon stock
You can find Amazon’s current stock price by searching for the company’s trading ticker, AMZN, on a financial information website or through your online broker.
Before you commit, consider:
- How you’ll achieve diversification. Financial advisors often stress the importance of diversification, which means making sure that your total investments — your portfolio — aren’t exclusively made up of the same types of investments. Investing in only individual stocks is typically considered risky; if the company hits a rough patch, your portfolio will, too.
- To soften that blow, investors often turn to low-cost mutual funds like index funds to make up the bulk of their investment portfolios. These funds track a market index and invest in many companies — in some cases, that includes Amazon — which makes it easier to diversify your portfolio and lower your investment risk.
Your future investment plans. In general, it’s wise to invest on a regular basis. There’s even a name for this strategy: dollar-cost averaging. It means investing set amounts at standard intervals, rather than putting a lot of money into the market, or into a stock like Amazon, at once. Dollar-cost averaging can help ensure you don’t always buy stocks or other investments at a high price.
3. Consider how much to invest in Amazon
How much you should invest in Amazon isn’t necessarily the same as how much money you have available. That’s because the stock market is considered a long-term investment, and financial experts typically warn against buying any stock with money you’ll need within the next five years.
Before buying individual stocks, it’s also wise to make sure you have an adequate emergency fund and that you’re saving for any important short-term goals. (Here are some suggestions for where to save for short-term goals.)
If you’re new to the stock market or have a small amount of money to invest, you might also be interested in fractional shares, which allow you to purchase a piece of a share — based on a set amount of money you want to invest — rather than the whole thing. Not all online brokers offer fractional shares, but the offering is becoming more common.
Amazon Stock Jumps After Q3 Earnings
For the quarter that ended in September, Amazon reported adjusted earnings of 94 cents a share. Revenue increased 13% year over year to $143.1 billion.
Amazon stock climbed by nearly 8% in trading following the report.
“Amazon handily beat sales and earnings expectations for the third quarter, with double-digit upside across all three primary business segments and substantial improvement in operating income growth,” William Blair analyst Dylan Carden told clients in a note.
E-commerce sales were up 7% to $57.3 billion. Wall Street analysts projected sales of $56.97 billion.
Meanwhile, the e-commerce giant collected $34.3 billion from third-party sellers, compared to analyst projections of $33.4 billion.
Company officials noted that efforts to streamline its e-commerce fulfillment network are showing benefits.
Operating income increased to $11.2 billion in the third quarter, compared with $2.5 billion for the same period last year. Cost-cutting contributed to that number, including significant layoffs.
Amazon Stock: Why Investors Are Closely Watching AWS
One potential concern from the earnings report: the company’s cloud business missed revenue estimates.
Amazon Web Services posted a 12% year-over-year sales increase to $23.1 billion. Analysts were expecting sales of $23.2 billion.
AWS doesn’t have the same name recognition as the Amazon.com retail business. But it is a key profit driver for the company and watched closely on Wall Street.
Notably, a revenue miss for Google’s cloud business sank shares for Alphabet (GOOGL) that same week.
But earnings call commentary from Chief Executive Andy Jassy seemed to put antsy investors at ease.
Jassy, who led AWS before taking over as Amazon CEO, acknowledged that companies were still focused on “cost optimizations” to lower their cloud software spending. Revenue growth for the third quarter was much slower than the 27.5% year-over-year jump in the third quarter of 2022.
But Jassy noted that deal-making for AWS had picked up in September and October.
“Companies have moved more slowly in an uncertain economy in 2023 to complete deals,” Jassy said. “But we’re seeing the pace and volume of closed deals pick up. We’re encouraged by the strong last couple of months in new deals signed.”
Further, the business topped profit estimates. Q3 operating income for AWS jumped 29% year over year to $6.98 billion, ahead of Wall Street estimates of $5.6 billion.
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