How to Buy Amazon Shares | Step-by-Step Guide to Buy AMZN Stock _ Are you interested in investing in stocks? Then, you are at the right place. Today we are going to be unveiling all you may need to know about Amazon shares.
Are you READY for the exposition on this subject? I guess it’s a YES! Then let’s roll.
About Amazon
Amazon.com, Inc. is an American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It has been referred to as “one of the most influential economic and cultural forces in the world”, and is one of the world’s most valuable brands.
It is one of the Big Five American information technology companies, alongside Alphabet, Apple, Meta, and Microsoft.
Amazon was founded by Jeff Bezos from his garage in Bellevue, Washington, on July 5, 1994. Initially an online marketplace for books, it has expanded into a multitude of product categories: a strategy that has earned it the moniker The Everything Store.
It has multiple subsidiaries including Amazon Web Services (cloud computing), Zoox (autonomous vehicles), Kuiper Systems (satellite Internet), and Amazon Lab126 (computer hardware R&D). Its other subsidiaries include Ring, Twitch, IMDb, and Whole Foods Market.
Its acquisition of Whole Foods in August 2017 for US$13.4 billion substantially increased its footprint as a physical retailer.
Amazon has earned a reputation as a disruptor of well-established industries through technological innovation and mass scale.
As of 2021, it is the world’s largest online retailer and marketplace, smart speaker provider, cloud computing service through AWS, live-streaming service through Twitch, and Internet company as measured by revenue and market share.
In 2021, it surpassed Walmart as the world’s largest retailer outside of China, driven in large part by its paid subscription plan, Amazon Prime, which has over 200 million subscribers worldwide. It is the second-largest private employer in the United States.
Amazon also distributes a variety of downloadable and streaming content through its Amazon Prime Video, Amazon Music, Twitch, and Audible units.
It publishes books through its publishing arm, Amazon Publishing, film and television content through Amazon Studios, and is the owner of film and television studio Metro-Goldwyn-Mayer since 2022. It also produces consumer electronics—most notably, Kindle e-readers, Echo devices, Fire tablets, and Fire TV.
If all of this has piqued your interest in Afterpay’s growth, here’s everything you need to know about purchasing Amazon stock.
How to Buy Amazon Shares | Step-by-Step Guide to Buy AMZN Stock
1. Open a brokerage account
Opening a brokerage account is the first step in purchasing and selling assets such as stocks, mutual funds, and exchange-traded funds (ETFs). However, a brokerage is more than simply a ticket to ride Amazon to the moon. It also includes all of the information and instruction you’ll need to be a great investor, as well as many sorts of investment accounts tailored to certain goals.
If you’re thinking about investing for retirement, consider a tax-advantaged individual retirement account (IRA).
If you want greater freedom with your investing account—say, if you want to save for your own Amazon in the coming years—you should probably open a taxable brokerage account. These allow you to invest for any purpose or time frame, but you must pay taxes each time you sell an investment for a profit or receive dividend income.
Because not all brokerages are made equal, you should examine the fees, available investments, and services offered by at least a handful to choose which is best for you.
2. Determine the Amount to Invest
You probably can’t sign over your entire income to Amazon. That means you’ll need to ask yourself a few questions in order to determine how much you can afford to invest in Amazon.
- What is your budget? After you’ve paid all of your monthly bills, you’re free to save and invest whatever money is leftover. If you don’t already have one, you should put at least some of that money into an emergency fund, as well as retirement savings. However, the remainder might be used to fund other ventures, such as Amazon.
- How much does Amazon now cost? Stock prices are typically volatile, but Amazon’s stock price has been over $400 per share for the past year. As a result of this, you may not be able to buy a whole share of Amazon yet. Luckily, some brokerages, like Charles Schwab, Robinhood, Fidelity and Stash, let you buy portions of stocks called fractional shares.
- What’s your investing strategy? The majority of individuals invest in one of two ways: with a huge lump sum all at once or with little amounts over time. This latter strategy, known as dollar-cost averaging, may reduce your risk and help you spend less per share on average over time.
- What about your other investments? If you’re already an investor, you should consider how Amazon fits into your portfolio. “Any particular stock purchase should play just a modest impact in the average investor’s portfolio,” said Chip Workman, a certified financial planner (CFP) of The Asset Advisory Group. “A decent rule of thumb is that no single stock should account for more than 5% of a portfolio.”
3. Review Amazon’s Performance and Potential
Before purchasing Amazon shares—or any stock, for that matter—it’s a good idea to do some research about the company’s finances, performance, and future prospects. The annual reports (Form 10-K) and quarterly reports of a firm are the best places to start (Form 10-Q). In these, public firms such as Amazon are compelled to publish thorough details on their financial health.
You can also seek the advice of specialists. Brokerage firms routinely issue commentary on key stocks and industries, while third-party assessors such as Morningstar give in-depth research.
You’ll be able to decide how much of your money to put into Amazon if you combine financial facts with professional knowledge.
4. Decide Your Order Type and Place It
You may purchase your first Amazon shares once you’ve determined how much you want to invest in the company. Log into your brokerage account and input Amazon’s ticker symbol (AMZN) as well as the number of shares or dollar amount you wish to invest.
You can use a basic market order to buy AMZN at its current price, or you can use a more complicated order type, such as limit or stop, to buy AMZN only if its price falls below a specified level.
Because Afterpay is listed on the Nasdaq market, you may buy it from 9:30 a.m. to 4:00 p.m. ET Monday through Friday. You can continue to place orders for a few hours before or after the market opens if your brokerage offers pre-market and after-market trading. Any orders submitted outside of trading hours will be filled as soon as the exchange reopens.
Evaluate Investment
Whether you invest in AMZN or other assets, it’s a good idea to monitor their performance on a regular basis.
It’s usually best, to begin with, an annualized percentage return. This allows you to examine how well AMZN did over the course of a year in comparison to other companies or investments. You may also check Amazon’s financial data to ensure that it is still heading in the right way.
In addition to comparing AMZN’s performance to that of other stocks, you may want to compare it to industry benchmarks such as the S&P 500 and the Nasdaq Composite Index. This will show you how Amazon compares to the market as a whole.
