Amazon is one of the world’s most valuable stocks. How Much Does it Cost to Buy Stock in Amazon? It does, however, cost over $3,000 per share (as of midmorning July 24, 2020). However, this does not rule out the possibility of purchasing Amazon shares. In fact, you can invest in Amazon even if you don’t have enough money to purchase a single share.
Let’s look at the history of Amazon stock as well as a few alternative ways to purchase Amazon stock. Even if you don’t have a lot of money, we’ll teach you how to acquire Amazon stock.
- About Amazon
- What you need to know about Amazon stock
- How to buy Amazon stock
- Is buying Amazon stock the right move for you?
- Is Amazon still a good stock to buy?
- How much does it cost to buy a share of Amazon?
- Bottom line
Amazon.com, Inc. was established in 1994 and is based in Seattle, Washington. Jeff Bezos created the firm, and his parents put $250,000 in it to help it take off.
Amazon has since evolved to become one of the world’s top retailers and an e-commerce behemoth. As a consequence of the company’s success over the last two decades, Jeff Bezos, who is still the CEO of Amazon, is one of the wealthiest persons in the world.
Despite the fact that Amazon was founded to sell books, the firm has now expanded to encompass a variety of other items and services. Among the most well-known services and goods are:
- Amazon Web Services (AWS), which offers cloud computing
- Kindle reader
- Fire tablet
- Prime Video, which offers streaming content
- Amazon Prime, which offers two-day shipping and other benefits
- Home assistants Echo and Alexa
- Amazon Music, a music streaming service
Amazon recently purchased Whole Foods Market, bringing the online retail behemoth into the realm of food shops. This also enables Amazon, despite the fact that it is allegedly an online corporation, to oversee grocery deliveries. Jeff Bezos’ purchase of The Washington Post, a well-known newspaper, was another intriguing acquisition in recent years.
Individual sellers may also create a shop on Amazon to sell things, and the business makes it simple to self-publish books and e-books. The platform makes it simple for independent merchants and resellers of all types to display their wares. Retailers can also use services like Fulfillment by Amazon to handle packing and shipment. Amazon has fulfillment centers all throughout the United States and is now constructing a second headquarters in Arlington, Virginia.
What you need to know about Amazon stock
When you inquire, “How much is Amazon stock worth?” “It’s critical to keep things in perspective. The fact is that all firms’ stock values fluctuate on a regular basis, sometimes even minute by minute. There is a chance that you will lose more money than you invest, regardless of how you invest or what you invest in.
However, Amazon stock (ticker symbol: AMZN) has steadily risen over time. On May 16, 1997, the day after Amazon’s stock went public for the first time at a price of $1.50 a share following stock splits, Amazon shares were selling for $1.73 each. Following its first public offering, Amazon shares increased in value over time (IPO). Although Amazon suffered a setback during the stock market meltdown ten years ago, the company has since recovered.
Warren Buffett’s business, Berkshire Hathaway, purchased roughly $1 billion in Amazon stock in 2019. Amazon stock has recently profited from the fact that the coronavirus epidemic is prompting many people to stay at home and purchase products online. According to some experts, Amazon stock might increase in value by 16% in 2020.
According to the Bloomberg Billionaires Index, Amazon’s stock has benefited so substantially from COVID-19 that Jeff Bezos, who owns a lot of shares in his own firm, recorded the largest single-day boost in net worth on July 20, 2020. Amazon’s share price increase that day increased Jeff Bezos’ wealth by an estimated $13 billion.
How to buy Amazon stock
If all of this has piqued your curiosity in investing in Amazon, there are two basic ways to do so. Before you try one of these methods, keep in mind that you may also gain exposure to Amazon stock by investing in index funds. When you invest in index funds or ETFs, you gain exposure to Amazon stock because it is a large component of U.S. stock indexes.
However, you may buy more directly. Here’s how to invest in Amazon stock:
1. Open a brokerage account
When you purchase and sell stock on the market, you must utilize a broker. Most brokers have online brokerage accounts, which allow you to invest without any difficulty. Schwab and Fidelity are two of the more classic brokerage accounts. To purchase Amazon shares, you may alternatively utilize a broker such as E*trade or Robinhood.
You have the most control over when and how you trade when you use a brokerage account. You will very certainly be able to place market orders, limit orders, and other forms of orders. However, while deciding how to pick a brokerage, keep in mind that you may be required to purchase whole shares or fulfill an account minimum. For some investors, this might be a financial impediment to entering the stock market. Some brokerages used to impose transaction fees for each trade, but in recent months, some have dropped such costs.
However, keep in mind that if you have to satisfy minimums or acquire whole shares of firms, you may not be able to invest in Amazon until you’ve saved up enough money. But don’t let that deter you – this is an issue that our next option for purchasing Amazon stock can help you overcome.
2. Buy fractional shares
Some online trading platforms may not need you to acquire complete shares. In certain circumstances, sites like Stash allow you to purchase fractional shares, which are effectively fractions of shares. This allows you to purchase Amazon shares without having to save up $3,000 for even a single complete share.
So, for example, in the instance of Amazon, you might be able to buy one eighth of a share. Instead of having to come up with $3,000 all at once, you would just need to invest $375 to buy an eighth of a share of Amazon. You might keep buying fractional shares over time and profit if stock prices climb. Even if you do not own a whole share, your investment will grow in value if the stock price rises. In this manner, you may still receive the potential benefits of purchasing Amazon stock without having to spend a huge sum of money up front.
Stash also includes other easy investment features. You may set up automatic transfers as low as $5 to invest in fractional shares of any accessible stock. Stash
Is buying Amazon stock the right move for you?
When examining a stock, you must consider whether it is the best investment for you and your own financial goals. One of the risks of investing in individual stocks is that you may lose money if the firm declares bankruptcy or goes out of business as a result of market volatility. Although such a fate for Amazon is difficult to envisage, it is still a possibility.
Some other thing to consider is that because Amazon’s stock price has risen so dramatically, going in now is unlikely to reward you with such big profits. Many people who have earned a lot of money buying specific stocks have done so because they acquired shares early on and reaped the benefits of the large increase in value. The days of buying Amazon for a few dollars a share and reaping huge profits are long gone. Even if you acquire fractional shares in Amazon, you may still be able to reach your portfolio growth objectives.
If you want to make money by investing, Amazon is probably not the place to be. Amazon has never issued a cash dividend (a percentage of earnings distributed to eligible shareholders). Amazon does not appear to be planning to implement a dividend in the near future, though the corporation may decide to do so in the future. For the most part, Amazon stock is likely to perform well for individuals searching for growth in their portfolios and feel Amazon’s stock price still has opportunity to rise.
If you are thinking about integrating Amazon shares in your investing strategy, you should consider the possibility of Amazon suffering a setback and losing value. Rather than attempting to create a whole portfolio from individual stocks, some investors prefer index funds, mutual funds, and ETFs to gain from the market as a whole.
However, indexing will never allow you to outperform the market. Index funds are intended to mimic the performance of the market. By investing in Amazon stock, you may be able to outperform the market, especially if Amazon stock continues to rise in value. Buying too much of a single company, on the other hand, might be a dangerous decision if you haven’t previously established a whole portfolio with diversification in mind.
Before deciding how to buy Amazon stock, it’s a good idea to consult with a financial professional or create your own investing strategy. Determine how much money you want to invest and make clear financial objectives for the future. It’s also a good idea to plan out when you’ll be able to sell part of your stock and profit. This will also have an impact on your tax planning.
Just keep in mind that no matter what you choose to invest in, there is always the danger of loss.
Is Amazon still a good stock to buy?
Whether Amazon is a suitable stock to purchase is determined by your objectives and financial circumstances. Based on its historical performance, some experts say it still has capacity to expand in value, so purchasing shares might imply portfolio growth in the future. However, you must still conduct due research and know that there is always the chance of loss while investing.
How much does it cost to buy a share of Amazon?
At the time of writing, a share of Amazon (AMZN) costs little less than $3,000 USD (midmorning July 24, 2020). However, because stock market values change on a daily basis, the real share price will be determined by the cost at the time of your purchase. Furthermore, if your broker charges transaction fees, those must be factored into your total cost.
You may also purchase fractional shares of Amazon through certain online trading platforms that enable you to buy a piece of a stock without having to pay the full price for a complete share. In such a situation, you may be able to purchase a fractional share of AMZN stock for far less than the entire stock price.
It is crucial to remember that we are not financial counselors and do not provide investment advice. This Amazon information is intended to help you learn more about the stock so you can decide whether it makes sense to add Amazon stock to your portfolio.
There are several methods to establish an investing portfolio, and before you decide how to get started in the stock market, it’s a good idea to assess your goals and risk tolerance and develop a plan that is tailored to your specific position.