How Do You Buy Amazon Stock [Extra Quality]
Whether you want to use your money to make a major purchase or to invest in another company, there will come a time when you want to sell your shares of AMZN stock. To do so, simply enter your brokerage or investment app trading platform, type in the ticker symbol and select the amount you want to sell.
how do you buy amazon stock
For example, if a stock is trading at $180 per share, and the company offers a two-for-one stock split, a shareholder currently holding a single share at $180, following the split, would now hold two shares valued at $90 each.
Choosing to buy a single share of Amazon depends on your own portfolio needs, risk tolerance and budget. Amazon is not as expensive as it once was, but as a leading tech company, the stock can still be prone to price swings dependant upon external factors.
Since going public on May 15, 1997, Amazon stock has split four times. The company issued a 20-for-one stock split on June 6, 2020, a two-for-one split on September 2, 1999, a three-for-one split on January 5, 1999 and a two-for-one split on June 2, 1998.
The quickest and easiest way for individuals to buy Amazon stock is to open up a brokerage account, according to Kavan Choksi, investor, founder, and business management and wealth consultant at KC Consulting.
If you're investing in Amazon stock for the first time, he says, you should choose a brokerage that best suits your style of investing, consider the features you want your account to include, and compare the fee structures between different brokers to determine which one best meets your needs.
Brokerage accounts not only expose you to a variety of stocks, but they also let you invest in other types of assets, including ETFs, mutual funds, options, bonds, and more. And while not all brokers let you skip out on trading fees, the best platforms offer things like commission-free trading (i.e., you won't have to pay a commission each time you exchange investments like stocks, ETFs, and options), multiple account and investment types, fractional shares, and flexible customer support.
"Buying Amazon stock directly has become a lot easier and more accessible to retail investors since their 20-for-1 stock split in early June 2022," Choksi says. "Immediately after the split was executed, Amazon shares were trading at $125 per share, and have since dropped further to around $115 per share in recent days."
Note: Though one approach to Amazon is to buy the company's stock directly, you can also invest in mutual funds or ETFs that contain a percentage of the company. However, this may not always be the best move, according to Choksi.
"Funds that have exposure to Amazon often run the risk of being dragged down by other stocks and assets in the portfolio that are unrelated. Many investors are quite bullish on Amazon at the moment, so there is more scope and opportunity for upside gain if you buy Amazon directly."
If you're more of a long-term focused trader with an eye for less volatile investments, or if you're nearing retirement, you should exercise caution when investing in Amazon. The stock has proven to be particularly volatile, so it may not be a smart choice for risk-averse traders.
One of the best ways to build confidence in your decision to buy (or sell) a stock is to thoroughly research things like the company's historical performance, earnings reports, balance sheets, and financial statements. Another good move for developing market knowledge is to keep up with all news pertaining to that stock's industry, as well as other industries and assets, according to Choksi.
Now that you've decided Amazon stock is right for you, you'll need to determine how much to invest in it initially (and you'll later want to consider how frequently you'd like to buy more shares). But the initial investment amount varies per trader. Only you can decide which amount best suits your financial situation, and you'll want to make sure it aligns with your risk tolerance, time horizon, personal budget, and investing goals.
But before you select an amount and place an order, experts recommend having an emergency fund (a savings fund with three to six months worth of living expenses) in place. This will help prevent financial hardship if your stocks succumb to temporary market downturn.
While you can't control the market or its fluctuations in price, you do in fact have a say over the price you pay for shares. This can help you invest in stocks like Amazon while keeping a good handle on your budget and personal finances.
After you've bought your shares, you'll need to put a strategy in place for multiplying your returns. And you can do so without watching Amazon's stock chart every hour (unless you're a day trader). There are a couple of strategies you could use to get started. These include (but aren't limited to) the following:
Before you sell your Amazon stock, you may want to meet with an expert to see if it's in your best interest to sell now. This could include a financial advisor if you have one, or a tax professional who can explain how selling will affect your taxes.
The exact information you'll need to enter will depend on which type of service you're using. In many cases, you'll select "sell" and enter the stock symbol, which is AMZN for Amazon. Then you'll enter how many shares you want to sell and which type of order you're putting in (e.g., a market order or stock order).
Stash Banking services provided by Stride Bank, N.A., Member FDIC. The Stash Stock-Back Debit Mastercard is issued by Stride Bank pursuant to license from Mastercard International. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. Any earned stock rewards will be held in your Stash Invest account. Investment products and services provided by Stash Investments LLC, not Stride Bank, and are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value. In order for a user to be eligible for a Stash banking account, they must also have opened a taxable brokerage account on Stash.
Keep in mind that just because a stock is highly-solicited, it does not mean that it is the best investment for your portfolio. Make sure to consider your financial needs and investment goals, as well as the needs of your portfolio and the level of risk that your are willing to take on.
For years, Amazon seemed invincible, an e-commerce giant that made other companies shiver when it muscled into their markets. It helped Amazon stock soar into four-digit territory, and the company's earnings reports often delighted investors.
In the stock market, timing is critical. So when you're looking for stocks to buy or sell, it's important to do the fundamental and technical analysis that identifies lower-risk entry points that also offer solid potential rewards.
The IBD Stock Checkup tool shows that Amazon stock has a weak IBD Composite Rating of 41 out of 99. When choosing growth stocks for the biggest potential, based on technical and fundamental criteria, try to focus on those with a Composite Rating of 90 or higher.
Amazon stock is not a buy at this time. The stock continues to hit resistance at the 200-day line, which has been a resistance level for about a year. Amazon is currently sitting on its 50-day line. Falling below that would be reason for caution. But holding above it and then piercing through the 200-day line and holding would be a positive signal.
Over the past 3 months, 39 analysts have waded in with AMZN reviews and these breakdown 36 to 3 in favor of Buys over Holds, all naturally culminating in a Strong Buy consensus rating. At $136.91, the average target makes room for 12-month returns of 44%. (See Amazon stock forecast)
Dividend yield is a ratio that shows how much a company pays out in dividends each year relative to its share price. It is a way to measure how much income you are getting for each dollar invested in a stock position.
Dividend yields provide an idea of the cash dividend expected from an investment in a stock. Dividend Yields can change daily as they are based on the prior day's closing stock price. There are risks involved with dividend yield investing strategies, such as the company not paying a dividend or the dividend being far less that what is anticipated. Furthermore, dividend yield should not be relied upon solely when making a decision to invest in a stock. An investment in high yield stock and bonds involve certain risks such as market risk, price volatility, liquidity risk, and risk of default.
E*TRADE charges $0 commission for online US-listed stock, ETF, mutual fund, and options trades. Exclusions may apply and E*TRADE reserves the right to charge variable commission rates. The standard options contract fee is $0.65 per contract (or $0.50 per contract for customers who execute at least 30 stock, ETF, and options trades per quarter). The retail online $0 commission does not apply to Over-the-Counter (OTC) securities transactions, foreign stock transactions, large block transactions requiring special handling, futues, or fixed income investments. Service charges apply for trades placed through a broker ($25). Stock plan account transactions are subject to a separate commission schedule. All fees and expenses as described in a fund's prospectus still apply. Additional regulatory and exchange fees may apply. For more information about pricing, visit etrade.com/pricing.
Consolidation is not right for everyone, so you should carefully consider your options. Before deciding whether to retain assets in a retirement plan account through a former employer, roll them over to a qualified retirement plan account through a new employer (if one is available and rollovers are permitted), or roll them over to an IRA, an investor should consider all his or her options and the various factors including, but not limited to, the differences in investment options, fees and expenses, services, the exceptions to the early withdrawal penalties, protection from creditors and legal judgments, required minimum distributions, the tax treatment of employer stock (if held in the qualified retirement plan account), and the availability of plan loans (i.e., loans are not permitted from IRAs, and the availability of loans from a qualified retirement plan will depend on the terms of the plan). For additional information, view the FINRA Website. 041b061a72