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How to buy Amazon shares?

The Amazon company has established itself in a few years as the titan of online commerce with the help of an economic model, sometimes controversial, but undoubtedly effective.

The value of Amazon shares on the stock market has been rising steadily for 10 years. Yet, is it still a good time to buy Amazon shares?

Has the multi-sector e-commerce company faced the global COVID pandemic with serenity? Let 's unveil our guide to investing in Amazon shares.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

The first information to gather before buying Amazon shares is that regarding its nominal price over the years. Since its IPO 20 years ago during more prosperous periods, he believes that the company has won a place of choice among the closed club of GAFAM (Google, Amazon, FacebookApple and Microsoft). We are going to do a retrospective of the Amazon share price in order to assess its current potential.

The story begins on May 15, 1997 with the introduction of the company Amazon Inc on the NASDAQ market, which then specialised in selling books online. On this historic day, Amazon shares traded around $18, or Amazon shares in euros: €15.

Value

Very quickly, and despite not necessarily engaging net results, the company, a future giant in online commerce on a global scale, saw its action gradually increase in value:

  • A first peak was reached on April 01, 1999 with an Amazon share value of 85.50 dollars;

  • The price fluctuates enormously during this year. Despite everything, the 100 USD with a new peak reached on December 17 with 94.06 dollars, ie Amazon shares in euros: 79.79 euros;

  • Then came the bursting of the Internet bubble in the early 2000s. The share price of the company stagnated after a downward phase where the lowest share price was recorded with 6.78 USD on November 2, 2001;

  • In the space of 6 years, the Amazon share price barely reached $70 per unit, despite the shift taken by Jeff Bezos to broaden the core of his group's activity;

  • A small improvement occurs at the end of 2007. Stocks regain colour during a bullish phase where the stock reaches a new high of 94.45 USD in December. Then a certain resistance is felt with a title which oscillates in the range of 50 - 60 $ throughout 2008;

  • It wasn't until 2009 that things started to run exponentially and uninterruptedly. Amazon stock continues to break its own records. One after the other. December 31, 2009: 131 dollars (approximately 111 euros) / December 31, 2010: 180 dollars (153 €) / 31 December 2012: 245 $ (208 euros);

  • Finally, in 2013, the real historic rise began, which brought the titan of online commerce into the big leagues. In the space of 3 years, the unit price increases by 189% (2013 - 2016). Then in 4 additional years (2016 - 2020), the price of Amazon panics all analysts with a growth of + 315%, at the end of a year marked by the coronavirus and its many negative impacts on the world economy.

In order to support our opinion on the enormous growth of the stock and the interesting potential to buy Amazon shares, between its IPO on May 15, 1997 and May 15, 2020 (i.e. 23 years of presence on the NASDAQ), the share price Amazon has evolved by +13289%. Enough to undermine each Amazon stock forecast that is quite negative for several years. Warren Buffet himself admitted that he had misjudged the potential of the e-commerce company, at a time when so many of them were entering the market.

To date, a person who would have invested in 10 shares (or 180 dollars) on the day the title was introduced on the stock market would have seen a real small fortune forming on his portfolio. The stock peaks at around $3,300 (or €2,800) as the end of the third quarter of 2021 approaches. According to the various calculations with the inflation rates and the relative value of the dollar, this would turn around more than $300k, representing more than 166,000% growth. Not bad is not it? This reminds us of bitcoin and the explosion in its unit value since the end of 2020. Amazon, like Bitcoin, has made a few wealthy shareholders around the world thanks to their daring and conviction.

How to invest in an Amazon stock?

Now that we have established that buying Amazon shares can represent a real profitable investment for any self-respecting trader, we will present in detail what are the existing options for trading the stock on the stock market and highlight 3 brokers who, in our opinion, opinions, have the necessary assets to invest their money safely: eToro, XTB and.

Step 1: Choose a stock broker

The first step that should not be overlooked is to carefully choose the broker with buy Amazon Stock Exchange. Entering into financial asset trading must rely on a trustworthy intermediary where investors can invest their money with their eyes closed without fear of a scam. This is why our attention naturally turned to 3 regulated CFD forex brokers with an excellent reputation.

 

Is it still useful to introduce the broker eToro? It is known worldwide for its comprehensive, inexpensive trading services designed for novice traders. What stands out the most in user reviews is of course its social trading platform which offers easy-to-use technical analysis tools, very competitive fees and copy trading features. In a nutshell, all investors can automate their transactions by deciding to copy the positions of referring traders, highlighted in the ranking of Popular Investors. 

The other dimension, which positions the broker eToro at the top of our selection, is that the services are not limited to the only trading of CFD-type derivatives. It is true that the range of assets is vast with forex currency pairs, stock CFDs, indices, ETFs, commodities and crypto (including Bitcoin). To this wide variety of opportunities with leverage (up to 30: 1 for forex) is added an Ordinary Securities Account (CTO) which allows, as with any other more traditional stock broker, to ''buy the Amazon stock live and in real time with €0 commission". 

With a few clicks, it is possible to follow Amazon's share price in time and invest at the most opportune moment to complete its portfolio of financial assets. If necessary even to receive an Amazon dividend if Jeff Bezos and the board of directors of the group decide to reward their loyal shareholders, as can Apple.

We will see a little further on how to open an eToro trading account and buy Amazon shares. In the meantime, here is a summary table of the main advantages and disadvantages of the online broker.

buy amazon stock on etoro

ADVANTAGES

✅     Platform social trading with copy trading service

​✅     Very competitive brokerage fees with 0% commission on the cash purchase of shares

✅     Ideal training for beginners with eToro Academy

✅     Stock trading via CFDs with leverage (up to 5:1) and live with spot CTO

✅     Security and reliability of a broker regulated in more than 150 countries (FCA, CySEC)

✅     Multiple payment methods: credit card, bank transfer, Paypal, electronic wallets, etc.

DISADVANTAGES

❌     Quickly limited technical analysis tools for expert traders

❌     Customer Service support is sometimes slow

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Step 2: Open a trading account

Here is our step-by-step guide to opening a trading account with these 3 brokers. Some minor differences are possible but do not interfere with the overall understanding of the registration process:

Registration process

  • Click on the open account button;

  • Complete the form relating to personal data: surname, first name, country of domicile, telephone and email;

  • Activate the account with the link sent by email;

  • Complete his trader profile with additional data + complete the Know Your Customer (KYC) questionnaire to indicate to the broker his level of skills on the stock markets;

  • Send the required documents: identity document (CNI or passport) and proof of address (tax notice, water, electricity or telephone bill);

  • To make a deposit;

  • Start trading AMZN stocks.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Step 3: Deposit fund

Now let's find out how to deposit money to invest with your favourite broker. Once again, despite some variations depending on the intermediary, this guide provides all the answers needed to make a deposit.

To do this, simply go to the financial section of the customer area and select Deposit. Then enter the amount to be transferred as well as the chosen payment method. Finally to validate the transaction.

The minimum amount varies from broker to broker:

  • €200 for eToro;

  • No minimum amount for XTB (in our opinion, €100 is a threshold to be respected to be able to open positions with leverage);

Payment methods

The payment methods are multiple and vary depending on the broker. Here are the most recurring ones:

  • Visa and Mastercard credit cards (American Express on eToro);

  • Bank transfer;

  • Paypal (eToro);

  • Skrill and Neteller type electronic wallets;

  • Other payment solutions (eg: Klarna Sofort, GiroPay).

    The availability of funds is generally instantaneous, except in the case of bank transfer where it can take between 24 and 72 hours. For the most part, there are no fees to be expected on money deposits.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Step 4: Buy Amazon shares

Let's complete this buying guide with a tutorial on how to buy Amazon shares with the broker eToro. According to many customer reviews, this is the best option to take advantage of the growth and profits (in billions of USD) of Jeff Bezos' group.

Once again, the broker stands out for its great fluidity and logic of use. Once the account has been created, validated and funded, the trader goes to the Markets section. 2 options to find the AMZN share. Either he uses the search bar and types the name of the asset, or he searches manually in the section dedicated to actions.

When the security is found, the trader clicks on the asset. A transaction window opens. It remains to enter the quantity to buy. Then again 2 options are available. For short-term traders, validating leverage turns the trade into buying derivatives and the line is added to the portfolio as is. This solution allows you to take advantage of both the rise and fall in the price of Amazon shares.

Long-term investment enthusiasts can validate their order without leverage, which signals to the platform that they want the line to be automatically added to the CTO. In this last option, no commission (nor spread) is applied. The trader legally becomes the owner of one or more shares of Jeff Bezos' group like any other shareholder who trades on the NASDAQ market.

Also be careful, in all cases, to fill in the levels of Take Profit (automatic profit collection) and Stop Loss (automatic capital loss cut-off).

When these parameters are defined, it remains to click on Place an order to finalise the transaction.

Why choose Amazon stock?

What should we take away from the potential to buy Amazon shares? How is this opportunity to be carefully considered?

  • The company has demonstrated, even during the COVID health crisis, that it is financially and strategically strong. Jeff Bezos continued to make bold decisions to enable continued growth in revenue ($322 billion) in 2020 and group profits ($21.3 billion, an increase of + 83% compared to 2019);
     

  • Diversification of Amazon service activities to reach more and more consumers. From a simple online library, the company has become n° 1 in e-commerce (all sectors combined). Now it offers Prime Video (for VOD), Amazon Music, a cloud service, Audible (audiobooks), Echo connected devices, Kindle e-readers;
     

  • Many analysts had forecast the share's value to grow to around $2,700 with a high of $3,000. Despite the complicated economic environment on a global scale, the company Tech multi services has defied all these forecasts;
     

  • The exponential growth of ancillary services, which are a real need expressed by consumers, is undoubtedly the best argument for investing in the group;
     

  • Finally, Amazon has launched headlong into Internet advertising, seriously competing with Facebook and Google.

Amazon Company Information

information on amazon company

Amazon stock dividends

What about the Amazon dividend share? 

At present, like these colleagues from GAFAM, Amazon does not distribute dividends to its shareholders because the group favours strengthening its capitalisation by reinjecting dividends directly into its treasury or in the massive buyback of securities.

It had been announced that, perhaps, after the change of management (Jeff Bezos becomes only the executive chairman of the company), it might be possible for the shareholders to receive additional profits. To date, nothing has been paid to shareholders, who nevertheless benefit from a solid valuation of their shares.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

CONCLUSION: SHOULD YOU BUY AN AMAZON SHARE?

In our opinion, many indicators have come together to validate the idea of ​​buying AMZN shares as quickly as possible. The company has a wide range of tools to consolidate its growth. It is still No. 1 in Internet sales, despite strong competition like Alibaba. Its cloud and entertainment services continue to diversify. Not to mention Jeff Bezos' crazy new project to conquer space. It is a promising market that is of interest to other big names in the industry. Let us quote for example Elon Musk (Tesla and Space X) or Richard Branson (Virgin and Virgin Galactics).

The choice of broker is essential to buy Amazon shares. eToro is a serious and reliable option to invest your money with complete peace of mind.