niedziela, 3 września 2023

Is it worth buying Amazon shares?

Today, Amazon is one of the largest e-commerce companies in the world. Since entering the stock exchange, the price of its shares has been steadily increasing.

This trend is not expected to reverse in the near future.

Relatively stable price growth makes Amazon shares a safe investment. Investors willingly invest their capital in fast-growing companies that regularly generate huge profits.

It might seem that the best time to buy Amazon shares is behind us. Is it really so?

We believe there is still a lot of money to be made in Amazon shares. If you want to earn more profits, adopt a long-term strategy.

How to invest in Amazon? Where is the best place to buy company shares? What financial instruments to use?

Benefits of investing in Amazon shares:

  • Amazon is a fast-growing company. From the very beginning, he has been successful in the e-commerce industry. It has millions of customers around the world. It achieves multi-billion turnover, which is growing year by year;
  • High growth potential. If the company maintains its growth rate, its share price is likely to increase. Much depends on Amazon's annual reports. With more income, the value of the stock increases almost automatically;
  • Constantly rising share price. Since the foundation of the company and its debut on the stock exchange in 1997, the value of Amazon shares has steadily increased. The company survived three major crises during this time;
  • Numerous investment opportunities. Investing in stocks is very easy these days. You have easy access to many financial instruments, trading platforms and online brokers;
  • Since Amazon is a leader in many markets, it is quite safe to invest in the company. However, it is worth taking a long-term perspective and not focusing on quick earnings. Buying shares for €250 won't make you rich in a few months. However, it can be profitable in the long run;
  • Low fees. Most reputable trading platforms charge minimal transaction fees. Use eToro or similar providers and only pay when you make a profit.

Disadvantages of investing in Amazon:

  • No dividend. Amazon does not offer shareholders a share of the profits;
  • Big competition. While Amazon continues to lead the industry, more and more companies are growing at a similar pace. Tesco is currently in position number 2. The turnover of the British company in 2020 amounted to EUR 8.1 billion. It is closely followed by Zalando and Otto.

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