AMAZON STOCKS

AMAZON STOCKS

Mention Amazon and you'll get heads turning in your direction. Who's not acquainted with it? This multi-million company sets the pace in e-commerce. Its diversity in products and services makes it reap massive profits. When the business environment is suitable, sales escalate. If there is consistency in good performance, investors from all spheres are willing to inject their cash into the venture. These financiers in turn become shareholders.

Stocks are advantageous in that you can hold them for as long as you'd want to. A seasoned investor will tell you that after purchasing them, keep calm and watch them grow over time. The more you put in, the more you are to expect in return. Have you heard of Warren Buffet? The man amassed his wealth by investing his money and giving it time to yield handsomely. That's not rocket science. It's simply proper planning then executing the smart move. The same can work for anyone. 

However, it’s not a guarantee that things will turn out well as anticipated. Uncertainty is one principle of the stock market. Unprecedented changes could strike at any moment, making things head south. The Titanic is a classic example; the same could happen to your stocks. To avert more losses, you might decide to sell your shares. But with Amazon stocks, there are good reasons not to let them go. Want to find out why? Read on.

Continuous progress

When COVID 19 struck, things changed drastically. Restricted movements in the forms of partial or total lockdowns were imposed. Many businesses were affected since they too had to be shut to control the spread of the virus. How did Amazon remain afloat? The AWS (Amazon Web Services) and online shopping platform had an increase in demand. With many people forced to work-from-home or just stay in-doors, e-commerce was the most viable option.

Will these services simply go into oblivion once there are other market shifts, pandemics, or government policies? No sir! Amazon’s cloud computing and online shopping have proven too convenient for them to be completely shoved aside. These services are here to stay. 

Innovation

When Jeff Bezo began Amazon in 1995, it wasn't much for a show. I mean, how sustainable would an online bookstore be? Some thought that it was only a matter of time before it would shut down because profits dwindled. Jeff desired that the online business would diversify its products. And eventually, it did. From electronics to clothing and foodstuff, the online retail platform has had huge success.

The AWS also started out small. Amazon had seldom used computing hardware. To them to generate income, computing cycles were rented out to customers. In time, the idea worked leading to the development of the AWS brand. 

These two products have made Amazon an establishment worth imitation, earning millions in sales.

Longevity

With the market changing technologies Amazon has brought on board, we can never be sure what’s up their sleeves. The subsequent ones may be as successful as the current. These innovations make Amazon stocks to continue increasing in value up to the distant future. They lead at the vanguard as others follow. 

If there is such sufficient evidence on the profitability of Amazon, why would I sell my shares? You can also purchase AZMN stocks. Below is some detailed information about their performance in the stock market.

Fundamental analysis

For the third quarter, the estimated shares price rose to $12.37 from the expected $7.48. The revenue for online retail services totaled $96.1 billion. On the other hand, AWS posted $11.6 billion. Analysts express their views that in 2021, $448.6 worth of revenue is expected.

Technical analysis

Investors are keen on timing in the stock market. They engage in business when there are lower risks and high chances of rewards. The opportune time is determined once the fundamental and technical analysis are evaluated. Based on the IDB stock checkup, Amazon stands at 93. Additionally, it rates at 73 in terms of relative strength. It’s accumulation /distribution rating is D, where grade-A indicates large purchases while E shows massive sales. It’s listed in the IDB’s growing stocks as number 36.


These impressive statistics don’t come by chance. For Amazon, the introduction of new services played a major role. What some of them?

Amazon Prime

Convenience is at the heart of this service. Customers enjoy free shipping perks, music, and videos. To access its benefits, one has to gain membership. Subscribers pay monthly or annually for the services. Exclusive discounts are available for members with Prime day having the biggest sale. The event exceeds what Black Friday has to offer. James Lee, an analyst, mentioned that in 2021, Amazon might meet its target of one-day deliveries to members.

Amazon Pharmacy 

At the peak of the Coronavirus, Amazon has ventured into the health care sector. An 80% discount is available for subscribed Amazon Prime members who need generic drugs while 40% for brand drugs. Growth will propel if its services are affordable and efficient even after COVID 19 is history. Consequently, the AMZN stocks will receive a boost.

Online advertising 

Since more people are shopping online, placing advertisements on the Amazon website is a smart move. More people will most likely see the product and in time, sales might increase. Business owners pay Amazon hence increasing their revenue.

The bottom line

From humble beginnings to a profitable company. Who would have thought that this garage- launched establishment could reach its current heights? Amazon’s variety of products and services has enabled it to gain many customers as the years roll by. The high sales have tremendously contributed to the AMZN stocks recording good performance in the stock market. Investors are eying on its trends as the future looks promising. Its buy point is 3,496.34, with flattening then dropping of its strength line. High ranking stocks have their RS lines conforming or moving upwards. Are you thinking of being a shareholder in Amazon? Well, it's possible. Monitor its patterns over some time then make your decision. As facts have it, it will be a worthwhile investment.


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