How to Buy Amazon Stock in 2021 | Easy Step-by-Step Guide

how to buy amazon stock
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Since the outbreak of the pandemic, the stock market has crashed tremendously leaving a lot of companies shares struggling. In all of these, Amazon’s share price has had significant upward movement.

This article has been written to show you how you can leverage the tremendous investment opportunities at Amazon. Particularly, it’s going to show you how to buy amazon stocks.

Amazon is one of the largest retail stores in the US. It is a trusted online marketplace for millions of people around the world to buy all kinds of goods and services.

The company’s share price has had significant upward movement since March amidst the hit of the Coronavirus pandemic. Amazon’s revenue jumped 37% to $96.1 billion and this makes it the place you want to invest your money.

In this article, I’m going to really show you how you can buy Amazon stocks, when to buy the stocks, where to buy the stocks and lots more.

So patiently come with me through this journey.

So let’s get in…

What is Amazon Stock?

Amazon stocks are entitlements given to individuals and organizations by Amazon that allow them to own a proportion of the corporation’s assets and profits.

The quantity of shares you own is usually measured by how much stock you own.

How much does it cost to buy Amazon stock?

As of June, Amazon’s stock price runs around $2,650 per share, so it’s important to consider your long-term investment goals before purchasing Amazon shares.

When is the best time to buy Amazon stock?

Amazon has in between the outbreak of the pandemic become more profitable than ever and is poised for aggressive growth. Recent analysis has shown Amazon is to experience yet another upward projection as earnings for Amazon are about to jump.

According to the report, the projection for 2021 was $44.88, but as it is, it is further projected to rise to more than $50. 

What this means is that this is the best time to buy Amazon stocks before it rises. So if you are looking to know what time you should buy your Amazon stocks, now is the time.

Where can I buy Amazon stock?

You can buy Amazon stocks from any stockbroker. You can also buy Amazon stocks on the official Amazon website. Read our article on How to Get Free Amazon Gift Cards: 24 Tricks to Get Up to $100 Off.

How to buy Amazon Stock: Step to Step Guide

So here in this section, I’m going to show you how exactly you should buy your Amazon stocks. But before I tell you what you need to know, let me quickly advise you: only invest an amount you could afford to lose when investing in any venture. Stocks can be quite slimy. If you are not careful, you could lose your money.

So let’s look at the ways you could invest in Amazon. This is a trusted step to step as found on benzinga.com. Do really take your time to read through.

Step 1: Decide how much you want to invest

The very first step is to decide how much you want to invest well on time. This will save you from a lot of confusion in between. So, you’d need to really conduct a lot of research around it to help you decide.

Step 2: Choose An online broker

The easiest way to buy Amazon shares directly is through a brokerage account, which you would have to open if you don’t have one already. Once you’ve determined how much you’d like to invest, you can contact a broker and sign up for an account, fund the account, then place a “buy” order on the stock.

Examples of popular brokerage platforms you can contact include:

  • Vanguard
  • Fidelity
  • Charles Schwab
  • TD Ameritrade
  • E*TRADE

Step 3: Buy the amount of AMZN stock you want.

Once you’re hooked up with a broker, the next thing will be to buy your stocks.

There are generally two types of “buy” orders: market order and limit order. A market order will execute the purchase at the present market price, while a limit order will only execute if the price falls at or below the limit price.

Although a limit price might give you a lower price of entry, there is no guarantee that the limit order will execute.

Read: How to Increase your Chase Credit Limit in 2021

Future Projection for Amazon Stock

According to benzinga.com, it took seven and a half years for Amazon to reach $1,000 from $100 and it’s very possible that it could hit $10,000 between 2023 and 2025. Amazon’s potential to grow could continue over time.

Pros and Cons of Investing in Amazon Stocks

Pros of Investing in Amazon Stocks

  • Jeff Bezos who is the CEO of Amazon invests in growth opportunities. He is an insight-driven boss that leads gigantic markets and attracts and motivates talented individuals. Consequently, your share in Amazon is bound to increase progressively.
  • The company has a willingness to dip its toe into a wide range of industries which widens its profits and returns.

Cons of purchasing Amazon stock

  • It’s quite expensive. As of December 16, AMZN opened at 3,165.12 USD per share.
  • Amazon faces increasing direct-to-consumer online sales competition.
  • The company faces overvaluation and regulatory risks.

Bottom Line

So in a nutshell, here’s the step to step guide guide to help you decide if you are going to invest in Amazon stocks or not.

Remember, I have advised earlier that if you are ever going to lay hold of any investment opportunity, ensure to do so with your spare money. Invest only with the money you can afford to forfeit when you lose it.

Cheers!

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