Thinking about buying Amazon shares?
Read this article before you do anything.
Today I’m going to show you exactly whether it still makes sense to buy Amazon shares or whether it’s too late.
I will be comparing Amazon stock predictions from the best investment analysts in the world, so you won’t only get my opinion on Amazon stock but the opinion of those who move the markets.
Amazon shares forecast can be difficult, this is why I got the help of the top experts.
At the end I will also show you how I can buy Amazon shares to make money (step by step).
In this comprehensive Amazon 2021 guide I will also cover:
- The Amazon dividend 2021 (how generous is it?)
- The truth about Amazon’s profitability
- How do I buy Amazon shares today (easy way)
- Which brokers offer Amazon shares with zero commissions
Are we sure it’s a good time to invest in Amazon?
Bonus: I’ve added the fundamental and technical analysis on Amazon made by the by the world’s top analysts.
In short, there’s a lot of stuff.
Let’s get started now!
Warning: this is not investment advice but just my personal opinion based on data, statistics and also tests done by me.
Table of Contents
So, why invest in Amazon today?
Amazon.com (AMZN) has been listed on the stock exchange since 1997, when it was worth USD 18. Today it is worth around USD 3100.
It has been one of the best long-term stocks in the history of the stock market. In the last 10 years it has risen more than 1000%, so it has been much stronger than the strongest index in the world, the S&P 500.
Put another way, €10,000 invested in the e-commerce giant a decade ago would now be worth around €200,000 today.
Given the size of the company, it is only natural that investors wonder whether it can continue to grow or not.
At least…I do.
Well, Amazon could continue to grow, or at least, that is the most widespread opinion.
⭕️ Top opinions on Amazon 2021 shares (forecast)
I have collected for you the most authoritative opinions (ratings) from the world most authoritative agencies on Amazon shares.
I would like to point out that it is not possible to make accurate stock market forecasts. What is possible, is to leverage the “wisdom of the crowd” and try to understand price direction in the medium term.
Here is an excellent chart from the Wall Street Journal explaining how many financial analysts recommend Amazon shares:
44 analysts out of 51 today have rated Amazon shares as a “buy”.
It is not wise to trust stocks predictions blindly, but this is quite interesting, isn’t it?
📈 Amazon stock price forecast 2021
As you can see, I do not dare to make predictions.
I don’t do stock price predictions or recommend investments but I collect precious data from around the world.
What I do (so that this article comes in handy) is share with you my research on Amazon’s 2021 price predictions.
One more thing to know: Normally shares go up in price when their capability or earning money is expected to increase.
Here is the earning growth forecast for Amazon:
Here’s a also valuable chart from Tipranks that pulls together Amazon’s stock price predictions for this year made by :
According to the 31 experts who have made Amazon’s stock price predictions for 2021, the stock will increase in value.
The 31 analysts offering 12-month price forecasts for Amazon Inc have an average target of $4,106 USD.
The most optimistic estimate is USD 5,200 and the worst price forecast is USD 3,700. If the “average” estimate from financial analysts comes true then Amazon is set to rise about 20% this year.
Is now a good time to buy Amazon stock?
Is it a good time to buy Amazon shares now or not?
According to analysts, yes, but this is a long-term move.
AMZN stock is clearly in a consolidation phase. However, since it posted quarterly earnings, its relative strength line has flattened and then declined. This relative strength line measures the price performance of a stock relative to the benchmark index for all of us, the S&P 500.
Usually, a stock’s relative strength technical indicator confirms or defers to higher levels in these situations. Amazon would not currently be a clear buy, but it should definitely be watched. In any case, over the last 20 years it has been difficult to get the timing wrong because it has almost always gone up.
🛡 Is it safe to invest in Amazon?
Amazon is an extremely solid and diversified company at the moment. This suggests that it is relatively safer than others.
I mention the term “safety” but don’t take my word for it, because investing in shares is never “safe”, even if we are talking about Amazon, which is one of the biggest and strongest stocks in the world. It is not safe 100% and, taken alone, it is not the best investment ever.
How much to invest in Amazon?
One of the most important things you need to think about before investing is how much money you can afford to put into Amazon shares today.
The answer should never be “all the money I have”. This is because the stock market is considered a dangerous and long-term investment.
So, how much to invest Amazon shares?
Traditional financial experts generally advise against buying any stock with money you think you might need within the next five years. Before buying single stocks, it is also wise to make sure you have an adequate emergency fund and to save consistently.
Most brokers do not allow for stock splits, so one single Amazon stock costs about USD 3000 or more. This is something to think about.
An alternative way to buy Amazon shares in small chunks would be to use CFDs. I don’t like CFD especially if my goal is long term, but on this website you’ll find it as a way to invest in Amazon with little money (min 200 USD).
☞ The risks of investing in Amazon
Are Amazon shares safe?
Investing in single shares is never a safe investment, here are the biggest risks around Amazon stock:
Uncertainty about future profits: Amazon operates on very tight profit margins: Amazon it is extremely profitable now but it has not always been the case. In 2012 and 2014 it lost money while growing.
Slowdown in profit growth: Amazon’s growth has been spectacular. It should be remembered, however, that this growth is slowing down.
Competition: Competition is Amazon’s toughest operational risk. The retail industry is immensely competitive and Amazon’s competitors are no slouches. Amazon is winning the battle, but it is still a battle.
Why am I buying more Amazon shares?
I invest on the basis of simple convenience. The risk-benefit ratio has to be on my side, otherwise I don’t risk it.
That’s why I invest in long-term in ETFs, collect hundreds of payments from P2P loans, buy fractions of real estate online, and more.
Investing in individual stocks is something I’ve done for years, and to this day I keep building my portfolio of stocks.
Amazon is one of them, and now I’ll explain why.
I don’t underestimate the fact that Amazon, at the moment, is not considered a very ethical investment (and I keep looking for more sustainable alternatives) but still, I think it is valuable purely from an investor point of view.
When is the Amazon dividend date?
When will Amazon pay dividends?
Sorry, the Amazon stocks you’ve just bought will not pay a dividend this year!
That’s it, you read that right, Amazon doesn’t pay dividends and they’ve never paid dividend in the past.
What does it mean that Amazon does not pay dividends?It means that Amazon does not share the happiness of making huge profits with its shareholders. Click To Tweet
Why doesn’t Amazon pay any dividend?
Amazon does not pay dividends (even though it is a profitable company) because it prefers to use the money to keep growing. Many argue that as long as Jeff Bezos is around, there will be no dividends. He recently stepped down, so maybe, a dividend will come one day.
So why not prefer companies that pay me to invest instead of Amazon share?
I strongly suspect (along with many analysts smarter than me) that Amazon will start paying dividends within the next 5 years.
At that point, upon the announcement of a Amazon dividend coming, the stock will (presumably) experience a further climb (…and I want to enjoy it).
Not receiving dividends means no chance to automate some compound interest.
Monthly returns with Amazon?
Buying Amazon shares does not give you the right to receive any monthly or even annual guaranteed returns.
The reason is written above. Amazon does not pay dividends, does not reward or thank its shareholders.
If I want a monthly income from Amazon, I should consider working to earn money online, maybe using Amazon’s platforms.
📽 Video Amazon stock on Youtube
To understand what it means to invest in Amazon shares I think you need to understand what Amazon does as a business.
If you thought Amazon was just a big e-commerce company I think you were very wrong.
In this YouTube video on Amazon it is well explained what does it means to invest in Amazon in 4 minutes:
On this video on Amazon I really like the completeness on all the various Amazon businesses in the final part.
Technical analysis of Amazon shares
To predict the price trend of Amazon shares and decide whether to buy, I can use technical analysis.
What is technical analysis?
Technical analysis is based on past price movements of a stock to predict future ones.
I consider technical analysis to be quite reliable over certain time frames. Like weather forecasts, sometimes they get it right and sometimes not. A good technical analyst can predict price direction most of the time. Technical analysis can help analysts and therefore investors anticipate what is quite likely to happen to prices over time.
To make this article on how to buy Amazon shares even more useful I decided to share the result of technical analysis from someone authoritative.
Here is the technical analysis on amazon stock from TradingView:
I am passionate about technical analysis of financial markets so I could happily fill this article you with charts and graphs on Amazon stock. However, I think today’s focus is a different one, namely to get an idea on whether to buy amazon stock. The Amazon stock forecast is for a month, not a year.
These above are the results of hundreds of analyses done on Amazon stock, but don’t be 100% confident because they can all be wrong. Always do your research before investing.
Don’t trust me and don’t trust predictions 100%
Fundamental analysis of Amazon
Fundamental analysis looks to the numbers and history of the company for data to predict the future of a share price.
As you can see, everyone wants to know the future price of the stock, because knowing it can make us a lot of money. Correctly predicting the price of Amazon can help to make some money.
Here is a chart summary of the fundamental analysis on Amazon stock:
The fundamental analysis we see above on amazon clearly says that Amazon:
- is a healthy company
- has no problem making profits
- is growing strongly
- has reached very high stock market values
- does not offer dividends (yet)
Where do I buy my Amazon stocks?
I use many different brokers.
If I was not too expert, I’d definitely go with a popular choice that is easy very to use.
eToro is serving Amazon with zero commissions and it is easy to use.
Remember, it is not the only broker, so do your research.
Beware that on eToro there are also CFDs:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
3 reasons to buy and hold Amazon shares in 2021
The company is led by the founder
Studies have shown that stocks of companies led by a founder tend to do good. So it is good that Amazon is led by Jeff Bezos, the very man who founded it in 1994.
Online shopping continues to grow strongly worldwide
Amzazon is already the global leader in online shopping. In 2019, e-commerce sales accounted for 13% of all retail sales worldwide, up from 12% in 2018. Competitors are Alibaba, Mercadolibre and a few more.
Amazon is not just the world’s largest shop
Amazon’s cloud computing service is a powerful money maker and it’s called Amazon Web Services (AWS).
Ok, but what is AWS?
Here is the answer to what is ASW (also for investors):
Note: RevenueLand does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell any particular stock or security.
How to buy Amazon stock?
Now that I have defined why I want to buy Amazon shares, I need to find the safest and most convenient way to invest.
This is a basic guide to buy Amazon shares for a beginner. If you are not a beginner than you probably already own amazon shares or you’ve traded some in the past.
So, what is an easy way to buy amazon stocks?
Here are 3 ways to invest in Amazon shares:
- Go to your physical bank (expensive)
- Buy Amazon shares on any online bank (watch out for costs)
- Invest in Amazon shares through low-cost brokers (safer and cheaper choice. I do this ⭐️)
Amazon does not pay dividends, so, to make money from the Amazon stocks it is enough to buy some shares today and wait to sell it to an higher price (if price goes up).
If I buy 1 Amazon share today and then sell it back after some time (when they may have gone up in price) I may get a “capital gain”. Basically I will have made money by trading shares. It is not difficult.
Read what my opinion on that broker.
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FAQ Amazon stock
Amazon shares were worth $18 in 1997, then $170 right 10 years ago and now over $3000. Many investors did not buy them because they thought it was too late. For now the forecast is optimistic.
Physically at the bank, through home banking or even better through certain cheap online brokers.
Amazon shares have been extremely cheap over the last 10 years. Today, they are still a good deal, but certain aspects need to be studied.
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