How to Buy Amazon Stock
Amazon.com Inc
Amazon. com, Inc. engages in the retail sale of consumer products and subscriptions through online and physical stores in North America and internationally.
Amazon stock last closed at $188.76, up 0.03% from the previous day, and has increased 78.36% in one year. It has overperformed other stocks in the Internet Retail industry by 0.55 percentage points. Amazon stock is currently +79.5% from its 52-week low of $105.16, and -0.62% from its 52-week high of $189.94.
At the moment, there are 10.41B shares of AMZN outstanding. The market capitalization of AMZN is $1.96T. In the last 24 hours, 33.44M AMZN shares were traded.
How to Buy Amazon Stock
Wondering how to invest in Amazon stock? Here's how.
- Decide where to buy Amazon stock: You need to pick an online brokerage, but don't worry - we've tested dozens of online brokerages and apps to help you figure out where to buy Amazon stock.
- Create a brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've found.
- Fund your investment account: Pick your method of payment and add your details.
- Evaluate Amazon stock: The Amazon ticker symbol is AMZN. Is Amazon stock a good investment? Should you buy shares of AMZN? How do AMZN's underlying business fundamentals look? Do top analysts think Amazon is a good buy? Why has AMZN's stock price moved recently? (Hint: Our stock research tools can help you evaluate if AMZN is a good stock to buy).
- Place your AMZN purchase: Decide if you will purchase AMZN shares at the current market price or use a limit order to purchase AMZN shares at a given price.
- Get notifications regarding your investment in AMZN: Create a watchlist to track your investment in Amazon stock.
Step 1: Decide where to buy Amazon stock
You need an online brokerage account in order to access the NASDAQ market and buy AMZN stock.
Our favorite brokerage: eToro
Based on our research, eToro is the best online stock brokerage. eToro gives you:
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- Social investing: eToro boasts a community of more than 20 million users worldwide. Talk to, learn from, and copy the crypto trades of top investors.
- Security: eToro is a regulated and licensed fintech leader.
- Buy other assets: Such as ETFs and cryptocurrencies.
Get $10 towards your share purchase by creating an account with eToro today.
Open eToro AccountStep 2: Create a brokerage account
Now that you've selected the right brokerage, it's time to fill out some personal information so you can buy AMZN stock today.
How to Create a New Investment Account on eToro
- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Input your personal info to start your new trading account.
- Send your info by hitting the "Create Account" button. Get started with eToro today
Step 3: Fund your investment account
Now that you have created your account on the best app for stock investing, you can securely and quickly fund your account:
Check out the tutorial below for more details depositing money into your new investment account.
Step 4: Evaluate Amazon stock
After you have decided on the best place to buy Amazon stock, it's important to evaluate their stock prior to buying, so you actually comprehend the risk and upside.
Amazon Metrics
AMZN Fundamentals
WallStreetZen was designed to help everyday investors do more accurate fundamental analysis.
You can see all of the due diligence checks on AMZN's stock page.
Is AMZN stock undervalued?
Analysts use a variety of different financial metrics, analyses, models, and charts to gauge AMZN's true value.
Using relative valuations metrics:
- AMZN may be overvalued based on its P/E ratio of 51.86x, relative to Internet Retail industry P/E ratio of 48.32x
- AMZN could be overvalued based on its P/B ratio of 9.07x, relative to Internet Retail industry P/B ratio of 5.92x
- AMZN could be overvalued based on its PEG ratio of 1.82x
You can do more valuation research on AMZN's stock here.
How do AMZN Financials look?
Positive Health Checks:
- AMZN's operating cash flow of $99.15B allows it to safely service it's debt of $134.69B.
- There are more short-term assets than short-term liabilities on the AMZN balance sheet.
- Total AMZN debt is lower than 5 years ago, relative to shareholder equity.
- AMZN earnings of $49.33B is not sufficient to cover its interest payments.
- AMZN profit margin has gone up from 0.8% to 6.4% in the past year.
- There are more short-term assets than long-term liabilities on the AMZN balance sheet.
Negative Health Checks:
- AMZN has a relatively high debt to equity ratio of 1.45.
Is it a good time to buy Amazon stock, according to Wall Street analysts?
Out of 32 Equities analysts who monitor AMZN, the consensus analyst rating on Amazon is a Strong Buy
Please keep in mind that analyst forecasts are not recommendations, nor are they investment advice.
Latest AMZN Analyst Upgrades/Downgrades
Nicholas Jones, a top 1% analyst from JMP Securities reiterates AMZN with a buy rating and maintains their AMZN price target from $225.00 to $225.00, on May 1, 2024.
Daniel Kurnos, a top 10% analyst from Benchmark reiterates AMZN with a strong buy rating and maintains their AMZN price target from $200.00 to $200.00, on May 1, 2024.
Doug Anmuth, a top 1% analyst from JP Morgan maintains AMZN with a strong buy rating and raises their AMZN price target from $225.00 to $240.00, on May 1, 2024.
Scott Devitt, a top 3% analyst from Wedbush reiterates AMZN with a buy rating and maintains their AMZN price target from $225.00 to $225.00, on May 1, 2024.
Stephen Ju, a top 2% analyst from UBS maintains AMZN with a strong buy rating and raises their AMZN price target from $215.00 to $217.00, on May 1, 2024.
UBS's Stephen Ju raised their price target on Amazon (NASDAQ: AMZN) by 0.9% from $215 to $217 on 2024/05/01. The analyst maintained their Strong Buy rating on the stock.
Ju's price target hike followed an assessment of Amazon's Q1 2024 print, released on 2024/04/30.
Given Amazon's improved forecasting and equipment procurement capabilities, which allow for almost real-time asset deployment, the analyst sees the Q1 call as a net positive and expects investors to think that their AWS budget should be substantially higher than they were pre-print.
"Higher AWS Capex signals faster revenue growth," Ju noted.
Earnings Report
For Q1 2024, Amazon reported:
- EPS of $1.13, which beat the Zacks Consensus Estimate of $0.83 and, by 264.5%, Q1 2023’s $0.31.
- Revenue of $143.31B, which beat the Zacks Consensus Estimate by 0.55% and, by 13%, Q1 2023’s $127.36B.
- Operating income of $15.3B, up 218.8% Y/Y.
For Q2 2024, management guided:
- Revenue of $144B to $149B which, if achieved, would represent a 7% to 11% increase Y/Y.
- Operating income of $10B to $14B.
President & CEO Andy Jassy commented: “It was a good start to the year across the business, and you can see that in both our customer experience improvements and financial results.
“The combination of companies renewing their infrastructure modernization efforts and the appeal of AWS’s AI capabilities is reaccelerating AWS’s growth rate (now at a $100B annual revenue run rate); our Stores business continues to expand selection, provide everyday low prices, and accelerate delivery speed (setting another record on speed for Prime customers in Q1) while lowering our cost to serve; and, our Advertising efforts continue to benefit from the growth of our Stores and Prime Video businesses.
“It’s very early days in all of our businesses, and we remain excited by how much more we can make customers’ lives better and easier moving forward.”
You can dig deeper into what analysts are forecasting on the Amazon stock forecast page.
Metrics for Advanced AMZN Traders
AMZN Growth Metrics
Last year, AMZN earnings were $37.68B. In the past 5 year, AMZN's earnings have grown by 24.27% per year. This was slower than the Internet Retail industry average of 34.88%.
Last year, AMZN revenue was $590.74B. During the past five year, AMZN's revenue has gone up by 19.59% per year. This was slower than the Internet Retail industry average of 26.6%.
You can research AMZN's earnings and revenue performance here.
Who is buying/selling AMZN?
Over the past year, executives and large shareholders at AMZN have sold more shares than they have bought.
Douglas J. Herrington, CEO Worldwide Amazon Stores of AMZN, was the latest AMZN insider to sell. They sold $36,960.00 worth of AMZN stock on May 1, 2024.
Learn more about who owns AMZN shares here.
Can I get consistent income from AMZN stock?
No, Amazon doesn't provide an income stream by paying out dividends.
Get analysis from other investors
One of the major reasons eToro is our top-rated brokerage is because of its social trading community.
Click below to learn what other community members have to say.
Step 5: Place your AMZN purchase
There are two primary options:
- Market order: A market order is an order to buy or sell a stock at the best price on the market.
Market orders are generally the easiest way to buy. - Limit order: A limit order lets you buy or sell a security at a specific price (or better).
If you want to make sure you're buying or selling at a specific price, place a limit order.
Press the Open Trade button and your broker will place your order.
If you need additional help with buying stocks on eToro, watch the how to video below:
Step 6: Get notifications regarding your investment in AMZN
Now that you own some AMZN shares, you'll want to keep up with your new stock purchase.
Start a watchlist to see the latest developments about your AMZN stock.
AMZN Feed
How to Buy Stock in Amazon
To summarize, here are the 6 steps to buy stock in Amazon:
- Decide where to buy Amazon stock
- Create a brokerage account
- Fund your investment account
- Evaluate Amazon stock
- Place your AMZN purchase
- Get notifications regarding your investment in AMZN
If you are looking for a place to buy stocks, eToro is our favorite option.
Get Started with eToro TodayIf you want to watch your investment in Amazon, create your watchlist below.
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