Amazon went public in 1997, and since that moment, its shares have grown considerably, which is why this company, for many investors, is known as the “gold” of the stock market.
There is no doubt that those who thought about investing in Amazon when it came on the market, today their money has appreciated with a little compound annual interest of 36%.
This company is one of the largest in the world, which has shown us that it has constant growth and is reliable, elements that are highly sought after by large investors.
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How to invest in Amazon
When an investor thinks about Amazon, the first option that comes to mind is to buy shares. Half of North American analysts believe that Amazon’s rapidly expanding cloud business (Amazon Web Services) will produce more than double the company’s cash flow per share.
One more way to look at the company is its diversification process, with its sights set not only on the cloud but also on sectors such as streaming services, e-books or online music.
For this reason, if you are wondering how to invest in Amazon, preferring direct investment in its shares is one of the ways we have to do so; there are various online brokers with which you can do it easily.
What is an investment broker?
A broker is a company or agent that executes operations to purchase and sell financial instruments; among them, you will find stocks such as Amazon.
This option is designed for those who want to invest only in Amazon and individual securities rather than in more elaborate financial instruments, such as an investment fund.
The broker is the most direct option, so it is essential to choose one that has characteristics that ensure that you can get the most out of the money you invest: costs, security (well regulated and recognized by financial authorities), amount minimum required to invest, investment products they provide, among others.
Why should you start investing in Amazon?
Amazon’s shares have been experiencing constant and vertiginous growth for more than ten years, although it is indisputable that past results do not guarantee future profitability. Both its team of analysts in the financial country agree that Amazon is and will continue to be an attractive place to invest. If you are still not convinced, we give you some reasons to do so:
Investing in Amazon is investing big
When discussing investing in Amazon, we instantly think of “investing in the richest man in the world”, Jeff Bezos. The business skills that the founder and current CEO have are incredible.
Many consider him one of the most fearless people in business in human history.
In 1994, Bezos created Amazon, and in more than 20 years, he managed to position this company as the current leader, becoming one of the most millionaire people in the world.
Amazon is much more than an e-commerce platform
For many people, this company is just a large e-commerce Marketplace, and this is a big mistake; Amazon goes much further. One of the examples is that they have one of the most powerful and used infrastructures in the world, the Amazon Web Service (AWS).
Currently, AWS has a market share of 31%; this share positioned AWS as the undisputed leader in the Cloud Computing sector, ahead of Google and Microsoft.
Amazon’sAmazon’s share price will continue to rise
There is almost unanimous consensus among Wall Street’s leading financial analysts when discussing investing in Amazon.
In a survey carried out by 50 financial analysts, 48 recommend the immediate purchase of its shares or consider that the growth of its shares will surpass its competitors; the remaining two analysts give it a “hold” rating.
None of the financial analysts surveyed are bearish on Amazon, a situation rarely seen on Wall Street.
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