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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 $178.22, up 0.83% from the previous day, and has increased 93.36% in one year. It has overperformed other stocks in the Internet Retail industry by 0.73 percentage points. Amazon stock is currently +102.25% from its 52-week low of $88.12, and -0.28% from its 52-week high of $178.73.

At the moment, there are 10.39B shares of AMZN outstanding. The market capitalization of AMZN is $1.85T. In the last 24 hours, 31.58M AMZN shares were traded.

How to Buy Amazon Stock

Wondering how to invest in Amazon stock? Here's how.
  1. 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.
  2. Create a brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've found.
  3. Fund your investment account: Pick your method of payment and add your details.
  4. 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).
  5. 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.
  6. 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.

A brokerage account is an investment account that allows you to buy and sell a variety of investments, such as stocks, bonds, mutual funds, and ETFs.

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Step 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.

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  2. Input your personal info to start your new trading account.
  1. Send your info by hitting the "Create Account" button.
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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.

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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 Price
$178.22
1w %
1.85%
1y %
93.36%
5y %
113.21%
P/E
60.41x
P/B
9.17x
P/S
3.19x
PEG
1.6x
Revenue
$574.79B
Earnings
$30.43B
Fore. Rev. Growth
11.49%
Fore. Earn. Growth
37.75%
Market Cap
$1.85T
Next Earnings
Apr 25, 2024
Next Dividend
N/A

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 60.41x, relative to Internet Retail industry P/E ratio of 53.78x
  • AMZN could be overvalued based on its P/B ratio of 9.17x, relative to Internet Retail industry P/B ratio of 5.78x
  • AMZN could be overvalued based on its PEG ratio of 1.6x

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 $84.95B allows it to safely service it's debt of $135.61B.
  • 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 $40.73B is not sufficient to cover its interest payments.
  • AMZN profit margin has gone up from -0.5% to 5.3% 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 1.62.

Is it a good time to buy Amazon stock, according to Wall Street analysts?

Out of 29 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 2% analyst from JMP Securities maintains AMZN with a buy rating and raises their AMZN price target from $175.00 to $225.00, on Feb 2, 2024.

Brad Erickson, a top 5% analyst from RBC Capital maintains AMZN with a buy rating and raises their AMZN price target from $180.00 to $215.00, on Feb 2, 2024.

Josh Beck, a top 3% analyst from Raymond James maintains AMZN with a strong buy rating and raises their AMZN price target from $185.00 to $200.00, on Feb 2, 2024.

Scott Devitt, a top 5% analyst from Wedbush maintains AMZN with a buy rating and raises their AMZN price target from $210.00 to $220.00, on Feb 2, 2024.

Shyam Patil, a top 15% analyst from Susquehanna maintains AMZN with a strong buy rating and raises their AMZN price target from $185.00 to $220.00, on Feb 2, 2024.

Susquehanna's Shyam Patil raised their price target on Amazon (NASDAQ: AMZN) by 18.9% from $185 to $220 on 2024/02/02. The analyst maintained their Strong Buy rating on the stock.

After assessing Amazon's Q4 and FY 2023 earnings report, released on 2024/02/01, the analyst increased their price target because the company returned "a strong beat and CSOI [operating income] raise."

Further, Patil said, management "sounded notably bullish about the various opportunities across the board."

Susquehanna continues to view Amazon as a long-term secular grower underpinned by its strong e-commerce, Cloud, and advertising segments, the analyst reported.

Earnings Report

Amazon reported:

For Q4 2023:

  • EPS of $1.00, which beat the Zacks Consensus Estimate by 24.5% and Q4 2022's $0.03.
  • Revenue of $169.96B, which beat the Zacks Consensus Estimate of $166.26B and, by 13.9%, Q4 2022's $149.2B.
  • Operating income of $13.2B, up 388.9% from Q4 2022's $2.7B.

For FY 2023:

  • EPS of $2.90, up 1174.1% from FY 2022's loss per share of $0.27.
  • Revenue of $574.8B, up 11.8% from FY 2022's $514B.
  • Operating income of $36.9B, up 202.5% from FY 2022's $12.2B.

For Q1 2024, management guided:

  • Revenue of $138B to $143.5B, which would represent Y/Y growth of 8% to13%.
  • Operating income of $8B and $12B.

CEO Andy Jassy commented: “This Q4 was a record-breaking holiday shopping season that closed out a robust 2023 for Amazon.

“While we made meaningful revenue, operating income, and free cash flow progress, what we’re most pleased with is the continued invention and customer experience improvements across our businesses.

"The regionalization of our U.S. fulfillment network led to our fastest-ever delivery speeds for Prime members while also lowering our cost to serve; AWS’s continued long-term focus on customers and feature delivery, coupled with new genAI capabilities like Bedrock, Q, and Trainium have resonated with customers and are starting to be reflected in our overall results; our Advertising services continue to improve and drive positive results; our newer businesses are progressing nicely, and along with our more established businesses, collectively making customers’ lives easier and better every day.

"As we enter 2024, our teams are delivering at a rapid clip, and we have a lot in front of us to be excited about.”

You can dig deeper into what analysts are forecasting on the Amazon stock forecast page.

Metrics for Advanced AMZN Traders

SMA10
173.12
SMA20
171.95
SMA50
160.99
SMA100
150.2
SMA200
140.1
MACD
4.38
MACD Signal
4.32
MACD Histogram
0.07
RSI
68.1
Stochastic %K
87.3
Stochastic %D
80.98
StochRSI %K
66.19
StochRSI %D
52.11

AMZN Growth Metrics

Last year, AMZN earnings were $30.43B. In the past 5 year, AMZN's earnings have grown by 23.33% per year. This was slower than the Internet Retail industry average of 31.08%.

Last year, AMZN revenue was $574.79B. During the past five year, AMZN's revenue has gone up by 19.8% per year. This was slower than the Internet Retail industry average of 26.59%.

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.

Adam Selipsky, CEO Amazon Web Services of AMZN, was the latest AMZN insider to sell. They sold $86,500.00 worth of AMZN stock on Feb 22, 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:

Open eToro Account

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:

  1. Decide where to buy Amazon stock
  2. Create a brokerage account
  3. Fund your investment account
  4. Evaluate Amazon stock
  5. Place your AMZN purchase
  6. 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 Today
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

If you want to watch your investment in Amazon, create your watchlist below.

NASDAQ: AMZN
$178.22+1.46 (+0.83%)
Updated Mar 1, 2024
Open eToro Account
NASDAQ: AMZN
$178.22+1.46 (+0.83%)
Updated Mar 1, 2024
Open eToro Account

FAQ

How much does it cost to buy one Amazon share?

As of Mar 1, 2024, it costs $178.22 to buy one share of Amazon stock.

Remember, eToro's fractional share buying allows you to buy partial shares of stocks and ETFs. Even if you only have $100, you can buy 0.561 shares of AMZN.

Get Started with eToro Today
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Is now a good time to buy Amazon stock?

According to 29 Wall Street analysts who monitor Amazon, their consensus recommendation is to buy Amazon stock.

What is the best way to buy Amazon stock?

One way to place an order for Amazon stock is with a brokerage account.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.