TRADE AMAZON STOCK
American corporation Amazon.com was incorporated in 1994 by Jeff Bezos as an online bookstore. Within a year, the business started revenues of 20,000 dollars per week. Later, in 1997, amazon went public and launched its IPO (initial public offering) under the ticker AMZN on the NASDAQ exchange at a price of 18 dollars per share.
The multinational tech company, Amazon, is based in Seattle that deals in e-commerce, cloud computing, digital streaming and artificial intelligence. It is one of the biggest tech company in the world and also a member of “FANG” the most popular and best-performing tech stock in the market.
Amazon started trading at 18.00 dollars per share since then the company has announced three stock splits at 2-for1, 3-for-1and the last one at 2-for-1 in 1999. Amazon has managed to grow significantly over the last decade. After the bust of .com bubble the company was traded at 80 dollars per share then is rose to 2000 dollars per share in just ten years. The company’s total market capitalization for 2019 stands at 882.91 billion dollars.
Amazon has never paid dividends as the company is in the growth phase and a large amount of their profit is reinvested in the business and in R&D and for launching new products which can increase the value of the stock at a faster rate. Amazon has made at least ten acquisition till now which includes whole foods (13.7 billion dollars), ring (1.8 billion dollars), kiva systems (775 million dollars) Zappos (1.2 billion dollars). The company is focused on growing stock value which keeps investors happier.
Factors affecting Amazon stock price.
Tariffs and trade agreements- Amazon operates in the worldwide market place by using a drop shipping model to make its product available around the world. Many sellers prefer to manufacture their product in cheaper jurisdiction such as china. After that, they export it to different nations for online sales due to which changes in tariffs and trade agreements between the major nations can have a significant impact on the stock price of Amazon.
Amazon operates in the technology sector, which means dealing with fierce competition. The biggest competitors of Amazon in the e-commerce segment is Alibaba, Otto, eBay and Flipkart. Offline retail giants like Walmart and Costco also gives a significant competition. In the online entertainment, segment Amazon competes with Netflix and Apple iTunes, and in cloud hosting sector, amazon faces giants like Google and Microsoft. Paying attention to these companies’ performance in relation to amazon can help to trade on Amazon.
The rollout of new services and product
As stated earlier, that amazon invests a lot in research and development because of that amazon came out to be one of the most innovative company. Amazon is focused and entering different market ranging from acquisitions kiya systems which deal in smart security, robotic fulfilment system to online shoes and clothing retailer.
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