Does it pay to buy Amazon AMZN shares? Quotes and forecasts 2022
Seattle-based giant Amazon is one of the largest and most profitable companies in the world, so much so that its founder Jeff Bezos has become one of the richest and most revolutionary men of the modern era.
To buy Amazon shares safely and professionally, you need to follow 3 simple steps:
- Register with a regulated broker
- Make the minimum deposit
- Open the purchase transaction on the platform
Amazon’s best trading platforms are free and allow you to practice on a demo account, using virtual money. As a result, there are no costs and no risks.
To get off to the best start, in this article we will provide a list of the best brokers with which you can reliably buy Amazon shares.
Before we begin, let us mention eToro because not only is it very user friendly, even for beginners, but it even allows you to copy what other investors are doing.
In this way, even a beginner is able to start investing right away, copying investors who have performed well in the past (even if they are no guarantee of future profits).
Moreover, eToro’s social is perfect for those who want to learn, because it allows them to observe live what other more experienced investors are doing and interact with them.
What are the relevant financial figures to consider when investing in Amazon shares? Here are the main ones:
- Turnover: $386 billion
- P/E ratio: 73
- Capitalisation: $1.54Bn
- Operating Income: $6.87Bn
- Cash Flow: $5.97Bn
- Cash and cash equivalents: $42.12
- The capitalisation figure of over USD 1 trillion stands out: a record figure that eloquently indicates the size of Amazon.
A veritable giant in the financial world and one of the best stocks to buy and hold in your portfolio.
How to buy Amazon shares (or sell them)
There are many ways to buy Amazon shares, although there are few truly viable opportunities. These include buying shares directly from trusted brokers and speculating with CFD contracts.
Those who are looking for passive management will be able to choose a few opportunities, which we analyse in detail.
Share certificates
The most popular way for investors worldwide to buy Amazon shares: everyone dreams of becoming a shareholder in Jeff Bezos’ giant!
It follows that the Amazon share certificate is very popular and there are many opportunities to get hold of it: banks, SIMs or specialised brokers.
This option will allow us to become Amazon shareholders and earn money in the event of a share price rise.
A useful tip: recent rumours speak of a split for Amazon shares, due to their high demand. This should reduce the value of each individual share, making it more attractive even for investors without large capital at their disposal.
How can Amazon shares be bought as practically and cost-effectively as possible? Certainly by choosing eToro, selecting AMZN on the platform and proceeding with the purchase after deselecting leverage:
CFD Contracts
How to trade Amazon shares with CFDs? The most suitable investment for this kind of asset is the use of CFD contracts, which are reliable, professional and transparent.
Here are the main advantages of CFDs for investing in shares:
- EU-regulated financial instruments
- Can be activated with one click
- They allow short selling
Let’s open a specific focus on this last point: Are Amazon’s shares destined to grow forever? No financial security is destined to grow indefinitely, not even Amazon’s shares.
Precisely for this reason, those who decide to invest in shares via CFD contracts have two options:
Buy Amazon shares to gain from the price increase
Sell Amazon shares short to gain from the fall in price
In light of the above, simply click on ‘Buy’ to activate the bullish CFD and buy Amazon shares, or click on ‘Sell’ to activate the bearish CFD and profit in the event of a fall in price. But always remember that if you invest in the wrong direction with CFDs, you will lose money accordingly.
Sector ETFs
Amazon shares can be found on a large number of ETFs.
These investment portfolios are composed of numerous assets within them, carefully selected by professional managers.
There are many equity ETFs that have Amazon shares as their main asset. Funds based on American stocks, others on technology stocks and still others on profitable stocks, AMZN stock is always present with the highest percentage of the whole fund.
It may be a good idea to invest in one of these ETFs and include Amazon within an already diversified portfolio. Management is passive, a suitable solution for beginners.
Where to buy Amazon shares?
Investors have 2 investment solutions to choose where to buy Amazon shares:
- Bank
- Brocker
Let’s discover the advantages and disadvantages of each option, with a summary table at the end of the review.
Bank
How to buy Amazon shares in a bank? The classic way is to go to the bank counter and start the paperwork for opening a securities account.
After paying stamp duty and various fees (management, account opening and others), it will be possible to place the purchase order on Amazon, via the bank operator.
Some more innovative banks also offer Internet banking services to manage stock investments. It is often necessary to have a current account with the chosen bank and in any case we will come up against two objective difficulties:
- Platforms that are difficult to use
- High commissions per execution
Unfortunately, this investment method is characterised by high fixed costs. Investing in US equities through a bank and holding them in one’s portfolio has a higher than average cost.
Banks often charge fixed costs of €7 or more per trade. A figure that is bound to rise (even up to €20) if we trade foreign shares: a drain on our pockets!
(82% of retail investor accounts lose money when trading CFDs with this provider. Consider whether you understand how CFDs work and whether you can afford the high risk of losing your money)