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Buy and sell Amazon stock (AMZN): An investor’s checklist
Learn how to buy and sell Amazon stock and track your investment.
Amazon is at the forefront e-commerce and has changed the way we shop, from drones dropping off groceries to smart-home technology. of innovations that impact day-to-day living. It’s why many investors choose to invest in this retail giant.
Recent share performance of Amazon
Reviewing past stock prices and current events over the past couple of months is important before investing in any company. Review the moving average convergence/divergence — or MACD — to help you determine the strengths, momentum and duration of a trend. But keep in mind that past performance doesn’t necessarily indicate future results.
Amazon’s technical performance
Technical analysis is the mathematical study of a stock’s price based on its recent trends. You have more ways than just using the MACD to analyze market trends. Here’s what several key indicators are saying about Amazon’s current stock trend, according to charting service TradingView.
Amazon’s financial performance
Review shows Amazon’s financial over the last three years.
|Amazon (December figures)||Revenue||Operating income||Net income||Total assets||Total equity||Number of employees|
|2015||$107 billion||$2.233 billion||$596 million||$65.444 billion||$13.384 billion||268,900|
|2016||$135.98 billion||$4.186 billion||$2.371 billion||$83.402 billion||$19.285 billion||341,400|
|2017||$177.86 billion||$4.106 billion||$3.033 billion||$131.31 billion||$27.709 billion||566,000|
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How to stay up to date with Amazon stocks
Before investing, pay attention to a company’s financial position by monitoring elements like:
- Financial reporting. Know when a company typically releases its financial reports — these inform you how the company is performing and impact on the share price. Amazon reports annually on December 31st.
- Company news. Keep up to date on the company news like new service releases or expansion to a new country or market. The hiring and firing of key people also impacts the stock prices.
- Wider news. Be aware of other external events and news that may have an impact on Amazon’s share price — for instance the fast-moving consumer goods (FMCG) and e-commerce industries.
- Shareholder meetings. Shareholder meetings involve large shareholders to vote on matters relating to the company. Amazon hosts a shareholder meeting annually in May or June, and could impact the strategy and stock price of the company.
Things to consider
Before investing in Amazon, consider key questions like:
- What does the company do? This might sound silly with a company like Amazon, but if you can’t explain what the company actually does in a few sentences, you may need to do a bit more research before investing.
- Is it making profits? If you’re not sure if a company is profitable, this could be a red flag. Before you invest, read Amazon’s quarterly or annual earnings reports to look at the figures for yourself.
- Who are the main competitors? Before you invest find out if the company is the market leader, a newcomer, a fast-growing disrupter or on a downward trend. If the company you’re considering investing in operates globally, keep an eye on foreign competition too.
- Who runs the company? Any decent company lists its senior managers, CEO and CFO. You can tell something about the company’s stability and management style if a company can’t seem to hold on to higher management.
- Is the company’s position sustainable? If you’re looking for a long-term investment, do some research on the company’s sustainability. Will they be around in five or ten years?
- Is there room for future growth? What’s the outlook for the company’s medium- to long-term growth. Has it reached its maximum size?
From an online bookstore in 1994, Amazon has become one of the largest e-commerce sites in the world. It’s a popular choice for investors, but low risk is not the same as risk free. Before you invest in this Internet giant, research and make sure it’s for you.
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