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 $175.40, up 2.34% from the previous day, and has increased 22.57% in one year. It has underperformed other stocks in the Internet Retail industry by 0.05 percentage points. Amazon stock is currently +48.2% from its 52-week low of $118.35, and -12.82% from its 52-week high of $201.20.
At the moment, there are 10.5B shares of AMZN outstanding. The market capitalization of AMZN is $1.84T. In the last 24 hours, 28.79M 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
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- Buy other assets: Such as ETFs and cryptocurrencies.
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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 41.08x, relative to Internet Retail industry P/E ratio of 32.5x
- AMZN could be overvalued based on its P/B ratio of 7.79x, relative to Internet Retail industry P/B ratio of 5.33x
- AMZN could be overvalued based on its PEG ratio of 2.2x
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 $107.95B allows it to safely service it's debt of $132.97B.
- 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 $56.77B is not sufficient to cover its interest payments.
- AMZN profit margin has gone up from 2.4% to 7.4% 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 1.35.
Is it a good time to buy Amazon stock, according to Wall Street analysts?
Out of 36 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
Brad Erickson, a top 5% analyst from RBC Capital reiterates AMZN with a buy rating and maintains their AMZN price target from $215.00 to $215.00, on Aug 2, 2024.
Tom Forte, a top 2% analyst from Maxim Group maintains AMZN with a strong buy rating and raises their AMZN price target from $238.00 to $251.00, on Aug 2, 2024.
Justin Post, a top 1% analyst from Bank of America maintains AMZN with a strong buy rating and lowers their AMZN price target from $220.00 to $210.00, on Aug 2, 2024.
Rohit Kulkarni, a top 2% analyst from Roth MKM maintains AMZN with a strong buy rating and raises their AMZN price target from $210.00 to $215.00, on Aug 2, 2024.
Roth MKM's Rohit Kulkarni raised their price target on Amazon (NASDAQ: AMZN) by 2.4% from $210 to $215 on 2024/08/02. The analyst maintained their Strong Buy rating on the stock.
Amazon reported its Q2 2024 earnings on 2024/08/01.
Kulkarni said management's Q3 guidance "felt soft and Q3's margins feel even softer because of Amazon's seasonal step-up in retail hiring and weakness in high-ticket items."
The analyst said that AWS growth acceleration to 19% "was the quarter's bright spot."
Earnings Report
For Q2 2024, Amazon reported:
- EPS of $1.26, which beat the Zacks Consensus Estimate and, by 93.8%, Q2 2023's $0.65.
- Revenue of $147.98B, which missed the Zacks Consensus Estimate of $148.63B and, by 10.1%, Q2 2023's $134.38B.
For Q3 2024, management guided:
- Revenue of $154B to $158.5B, representing 8% to 11% Y/Y growth.
President & CEO Andy Jassy commented: “We’re continuing to make progress on a number of dimensions, but perhaps none more so than the continued reacceleration in AWS growth.
“As companies continue to modernize their infrastructure and move to the cloud, while also leveraging new AI opportunities, AWS continues to be customers’ top choice as we have much broader functionality, superior security and operational performance, a larger partner ecosystem, and AI capabilities like SageMaker for model builders, Bedrock for those leveraging frontier models, Trainium for those where the cost of compute for training and inference matters, and Q for those wanting the most capable AI assistant for not just coding, but also software development and business integration.”
Daniel Kurnos, a top 15% analyst from Benchmark reiterates AMZN with a strong buy rating and maintains their AMZN price target from $200.00 to $200.00, on Aug 2, 2024.
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 $44.42B. In the past 5 year, AMZN's earnings have grown by 28.2% per year. This was slower than the Internet Retail industry average of 38.17%.
Last year, AMZN revenue was $604.33B. During the past five year, AMZN's revenue has gone up by 19.11% per year. This was slower than the Internet Retail industry average of 25.21%.
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 $622,545.00 worth of AMZN stock on Sep 3, 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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