How to Buy Amazon Stock
Amazon.com Inc
Amazon. com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally.
Amazon stock last closed at $103.29, up 1.26% from the previous day, and has decreased 36.63% in one year. It has underperformed other stocks in the Internet Retail industry by 0.23 percentage points. Amazon stock is currently +26.85% from its 52-week low of $81.43, and -38.66% from its 52-week high of $168.39.
There are currently 10.25B AMZN shares outstanding. The market cap of AMZN is $1.06T. In the last 24 hours, 56.41M 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 choose an online brokerage, but don't worry - we've sifted through dozens of stock 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 identified.
- Fund your investment account: Pick your payment method 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 market research website can help you figure out 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 buy AMZN stock at a given price.
- Get notifications regarding your investment in AMZN: Create a watchlist to get live updates on your new investment in Amazon stock.
Step 1: Decide where to buy Amazon stock
You will need an online brokerage account to access the NASDAQ market and buy AMZN stock.
Our preferred brokerage: eToro
In our opinion, eToro is the best stock brokerage. Here's why:
- You can invest in stocks with zero commissions: Invest without paying trading commissions.
- Buy fractional shares: Even if you can't afford a full share, you can still purchase the stock.
- Access to global financial markets: From Technology to Energy, New York to Tokyo — you can fill your portfolio with stocks from the globe's top exchanges.
- Social investing: eToro has a community with more than 20 million users around the world. Talk to, learn from, and copy the unique crypto portfolios of top investors.
- Security: eToro is a regulated and licensed fintech leader.
- Buy other assets: Such as ETFs and cryptos.
Get $10 towards your stock purchase by opening an account with eToro now.
Open eToro AccountStep 2: Create a brokerage account
Now that you've selected your brokerage, it's time to fill out some personal details so you can invest in AMZN today.
How to Set Up a New Brokerage Account on eToro
- Click here to get started.
- Provide your personal details to start a new brokerage account.
- Submit your application by clicking the "Create Account" button.
Step 3: Fund your investment account
Now that you've finished signing up on the best stock trading app, your next step is to transfer the money for your investment:
Check out this video walkthrough if you need help depositing funds into your investment account.
Step 4: Evaluate Amazon stock
After you have identified the best place to buy Amazon stock, it's critical to evaluate their stock before you buy, so you actually wrap your head around the risk and upside.
Amazon Metrics
Amazon Zen Score
WallStreetZen was designed to help part-time investors perform more accurate fundamental analysis quickly.
You can view all of the due diligence checks on AMZN's stock page.
How is AMZN stock valued?
You can use many financial metrics, analyses, models, and charts to gauge AMZN's fair value.
Using relative valuations measures:
- AMZN could be overvalued based on its P/B ratio of 7.25x, relative to Internet Retail industry P/B ratio of 4.59x
You can access more valuation research on AMZN's stock here.
How do AMZN Financials look?
Positive Health Checks:
- Total AMZN debt is lower than 5 years ago, relative to shareholder equity.
- AMZN has $70.03B in cash and short term investments. This is sufficient to cover its annual cash burn of $11.57B.
- AMZN has cash burn of 11569000000. It has sufficient cash and short-term investments to cover this for at least one year.
Negative Health Checks:
- There are more short-term liabilities than short-term assets on the AMZN balance sheet.
- AMZN has a relatively high debt to equity ratio of 2.17.
- AMZN profit margin has gone down from 7.1% to -0.5% in the past year.
- There are more long-term liabilities than short-term assets on the AMZN balance sheet.
Is Amazon stock a Buy, Hold, or Sell, according to Wall Street analysts?
Out of 30 Wall Street analysts who give recommendations on AMZN, the consensus analyst rating on AMZN is a Strong Buy
It's important to note that analyst ratings are not stock recommendations, nor are they financial advice.
Latest AMZN Analyst Forecasts
Laura Martin, a top 10% analyst from Needham reiterates AMZN with a buy rating and maintains their AMZN price target from $120.00 to $120.00, on Mar 20, 2023.
Doug Anmuth, a top 1% analyst from JP Morgan maintains AMZN with a strong buy rating and lowers their AMZN price target from $142.00 to $135.00, on Mar 16, 2023.
Maintaining his Strong Buy rating, Anmuth lowered his price target on Amazon.com Inc. by 4.9%.
The stock's valuation only increased 14% over the past three years versus the S&P 500's rise of 63%, the analyst stated, noting that "investor sentiment remains at multi-year lows."
Although it is not possible to overlook the recent growth slowdown of Amazon Web Services, an argument can be made that it was caused by macro reasons and strong secular growth will come back when the economy recovers, Anmuth said.
A "number of pressures" in 2022 should fade or ease in 2023, the analyst predicted.
To conclude his note, Anmuth told investors that, "with meaningful steps from management to control costs, Amazon remains one of his best ideas."
Nicholas Jones, a top 15% analyst from JMP Securities reiterates AMZN with a buy rating and maintains their AMZN price target from $140.00 to $140.00, on Mar 16, 2023.
Ivan Feinseth, a bottom 9% analyst from Tigress Financial reiterates AMZN with a buy rating and maintains their AMZN price target from $192.00 to $192.00, on Feb 9, 2023.
Youssef Squali, a top 6% analyst from Truist Securities maintains AMZN with a strong buy rating and lowers their AMZN price target from $160.00 to $142.00, on Feb 3, 2023.
You can dive deeper into what analysts are projecting on the Amazon stock forecast page.
Metrics for Advanced AMZN Traders
AMZN Earnings
Last year, AMZN revenue was $513.98B. During the past 5 year, AMZN's revenue has gone up by 23.64% per year. This was slower than the Internet Retail industry average of 32.69%.
Learn more about AMZN's earnings and revenue performance here.
Latest Insiders Trades at AMZN
Over the last 12 months, 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 $230,690.86 worth of AMZN shares on Mar 21, 2023.
Dig into more about who owns AMZN shares here.
Does AMZN stock generate passive income?
Amazon pays a dividend of 0.19%, compared to the Internet Retail industry's average dividend yield of 5.33%. If you owned $1,000 worth of AMZN stock, you would have received $1.94 last year.
Get more info about Amazon dividend yield and history here.
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.
Related "How To" Guides
FAQ
Company
AboutBlogStock Investing FAQPlansPrivacy PolicyTerms of ServiceCancellation & RefundsHelp GuidesContactTwitterYouTubeInformation 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.