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Amazon – formerly Cadabra – is the popular company founded by Jeff Bezos in 1994.
It is often considered as a real disruptor: this company born to be an online retailer – then expanded into sectors like streaming, cloud computing, gaming, storage services, blockchain-based solutions, artificial intelligence and more – was able to challenge established companies and to efficiently reinvest capital over time.
It is listed among the US top five tech companies – along with Microsoft, Alphabet, Meta and Apple.
The company went public in 1997. It was listed on the Nasdaq at an IPO price of $18, under the ticker AMZN.
In this article, we will cover the key features of AMZN stock, as well as its past performance and how to buy it.
- 1 Amazon Stock Key Features
- 2 Amazon Stock Over the Years – Review
- 3 How To Invest In Amazon Shares
- 4 How to Buy in the Amazon Shares Through eToro
- 5 Summary
- 6 FAQ
Amazon Stock Key Features
- The company split stocks four times
- Amazon’s dividends are lower than the average in the US – 0.17%
- The company doesn’t pay these dividends to shareholders, since it usually reinvest profits
- There are over 10 billion Amazon shares outstanding
- Amazon offers a Direct Stock Purchase Plan (DSPP)
Amazon Stock Over the Years – Review
AMZN stock went through ups and downs. This is pretty normal if we consider market cycles, but if we consider recent years, we need to take into account an unprecedented event like the pandemic.
Starting from 2019, the stock has experienced impressive uptrends, brief and deep corrections, and the company shared both positive and negative earnings reports. Moreover, as other companies heavily reliant on technology, Amazon faced additional regulatory scrutiny and the positive effects recorded for stocks like AMZN during the first phase of the pandemic – as well as the following dramatic correction.
AMZN Stock in 2023
Sustainability and issues with workers.
The stock opened 2023 with a significant dip – around $85, but soon rebounded, and it’s currently traded at around $120.
The company has been making headlines not only for a stronger attention towards green and sustainable solutions, but also for what concerns issues with workers, especially for the return-to-work policies of the company.
AMZN Stock in 2022
Fall and split. It’s no mystery that 2022 was the year of deep corrections for all those companies that recorded impressive growth after the breakout of the pandemic.
Amazon is among them.
The year started with earnings data that were still positive for the company – especially if we consider a positive surprise of +668% in February. But the following reports were below expectations. Maybe to cope with losses, a stock split occurred in 2022: in June, a significant Amazon stock split resulted in the offering of 20 shares for each share owned by investors.
The stock went from $170 to $84 by the end of the year.
AMZN Stock in 2021
New CEO, new jobs, new regulatory scrutiny.
2021 was an intense year for Amazon – as for other tech companies.
The price of the stock suffered a natural correction, which followed the impressive growth of the previous year.
The stock went from $159 to $166. It didn’t record high volatility, despite major events and announcements:
- In July, Andy Jassy replaced Jeff Bezos as the CEO of the company;
- Network expansion, to meet a demand that in 2021 was still constantly higher;
- Amazon and other companies faced stronger regulatory scrutiny in 2021, especially antitrust scrutiny.
AMZN Stock in 2020
Confirmation of the uptrend and the effects of the pandemic.
In 2020, the stock not only confirmed the rebound started in 2019, but was also the beginning of a solid uptrend. A little dip anticipated the relatively negative earnings of the company published in April, but Amazon is for sure one of the stocks most positively affected by the pandemic.
The company went through 2020 with positive revenues and earnings – that reached impressive surprises of almost +600%.
The price of the stock went from the $94 of June 2 to $162 by the end of the year.
AMZN Stock in 2019
The rebound after the dip. The first days of the year began with a slight recovery of the stock that had reached a dip below $68 during the end of 2018.
The company started the year with positive earnings data – with a surprise of +6.94% in January, and +50.72% in April, but reports were relatively negative in July and October, causing a brief downturn.
The stock surpassed $92 by the end of the year.
Investors and traders interested in Amazon can get exposure to the company through different financial products.
Stocks are the most common way to invest: investors can hold stocks issued by the company and observe market developments over time, or trade the stocks they own.
There are also derivative financial products based on the price of AMZN. For example, AMZN CFDs (contracts for difference) give investors the opportunity to enter contracts, which represent financial instruments, based on the price of the stock – that works as an underlying asset.
Another way to invest in Amazon is through Amazon Options, which give traders and investors the right to buy or sell options at a specific price in the future.
Moreover, AMZN is a part of the assets included in major financial indices like S&P 500, Nasdaq, Dow Jones.
Today, investing is a more inclusive activity thanks to the availability of regulated online brokers that also focus on user experience.
One of the brokers currently available is eToro.
In spite of the fact that there are countless alternatives in the market when it comes to online brokers, they’re not all equal.
Users should always rely exclusively on regulated brokers, in order to trade and invest in a safe environment. Moreover, they should consider their individual financial goals and preferences.
To give you a practical example of a regulated online broker and how you can use it to invest in AMZN, we will analyze the functioning of eToro.
Step 1: How to open an account
New users can start by creating a new account on eToro. This first step begins by clicking the “Sign up” button on the homepage of the website of the broker – or its mobile application.
The form that will appear will require you to enter your name and email address, and set a new password. Users can also choose to sign up by linking a social account like Facebook or Google.
Step 2: How to complete the registration
This step is pivotal to follow regulators’ rules. A platform that offers and manages financial products should always be able to identify its costumes, and it’s for this reason that eToro will ask you to upload your identification documents.
Step 3: Everything is ready to deposit funds
New users can now make their first deposit, in order to start investing and trading on eToro.
This can be done by navigating the Deposit page and choosing one of the available payment methods.
Step 4: Search for AMZN
Users interested in Amazon stocks can now use the search bar to find the investment product they’re interested in.
They can find the stock by typing “AMZN” or “Amazon” in the search bar included in the online platforms provided by the broker.
Step 5: Invest in AMZN
Now users are ready to invest in Amazon stocks.
After searching the stock, a page dedicated to the asset will appear, giving users the opportunity to invest in Amazon by choosing the amount they want to invest or the number of stocks.
Amazon is one of the largest companies in the world. Born as a retailer, the company has expanded over time to offer services and products across several sectors – streaming and cloud services, gaming, storage, blockchain and AI-based solutions and much more.
The success of the company heavily depended on the intuitions of one of its founders, Jeff Bezos, who has served as the CEO of the company until 2021.
Despite the replacement of the CEO, the company went through uncertain times without experiencing too high volatility. Moreover, investors need to consider the financial strategies used by the company to make its stock more attractive during specific periods – for instance, stock split.
In this article, we covered the publicly traded company and its stock, as well as the performance of the stock during the past few years, to give you all the information you need if you’re interested in AMZN stock – including information on how to invest in it.
The global financial uncertainty is influencing the stock market, and in the case of Amazon a drop might also be linked to the relatively negative reports related to the performance of the company – especially for what concerns its cloud services.
Traders and investors should always evaluate according to their goals and the level of risk they can afford.
Yes, four times: a 20-for-1 split in 2022; a 2-for-1 split in 1999; a 3-for-1 split and a 2-for-1 split in 1998.
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