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How to buy Amazon-com stock | 3207.21

Own Amazon-com stock in just a few minutes.

Fact checked

Amazon.com, Inc is an internet retail business based in the US. Amazon-com shares (AMZN) are listed on the NASDAQ and all prices are listed in US Dollars. Amazon-com employs 1,125,300 staff and has a trailing 12-month revenue of around USD$347.9 billion.

How to buy shares in Amazon-com

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Amazon-com. Find the stock by name or ticker symbol: AMZN. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Amazon-com reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$3207.21, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Amazon-com, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Amazon-com. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Amazon-com's share price?

Since the stock market crash in March caused by coronavirus, Amazon-com's share price has had significant positive movement.

Its last market close was USD$3207.21, which is 34.65% up on its pre-crash value of USD$2095.97 and 97.24% up on the lowest point reached during the March crash when the shares fell as low as USD$1626.0318.

If you had bought USD$1,000 worth of Amazon-com shares at the start of February 2020, those shares would have been worth USD$951.42 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$1,603.61.

Amazon-com share price

Use our graph to track the performance of AMZN stocks over time.

Amazon-com shares at a glance

Information last updated 2020-11-24.
Latest market close USD$3207.21
52-week range USD$1626.0318 - USD$3552.25
50-day moving average USD$3191.5723
200-day moving average USD$2998.422
Wall St. target price USD$3812.78
PE ratio 90.6257
Dividend yield N/A (0%)
Earnings per share (TTM) USD$34.202

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Amazon-com stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Amazon-com price performance over time

Historical closes compared with the close of $3207.21 from 2020-10-19

1 week (2020-11-18) 3.28%
1 month (2020-10-23) 0.09%
3 months (2020-08-25) -4.16%
6 months (2020-05-22) 31.61%
1 year (2019-11-25) 80.81%
2 years (2018-11-23) 113.52%
3 years (2017-11-24) 170.42%
5 years (2015-11-25) 374.90%

Is Amazon-com under- or over-valued?

Valuing Amazon-com stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Amazon-com's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Amazon-com's P/E ratio

Amazon-com's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 91x. In other words, Amazon-com shares trade at around 91x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Amazon-com's PEG ratio

Amazon-com's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.1979. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Amazon-com's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Amazon-com's EBITDA

Amazon-com's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$43.7 billion.

The EBITDA is a measure of a Amazon-com's overall financial performance and is widely used to measure a its profitability.

Amazon-com financials

Revenue TTM USD$347.9 billion
Operating margin TTM 5.72%
Gross profit TTM USD$115 billion
Return on assets TTM 5.17%
Return on equity TTM 24.95%
Profit margin 4.99%
Book value $164.89
Market capitalisation USD$1.6 trillion

TTM: trailing 12 months

Shorting Amazon-com shares

There are currently 3.1 million Amazon-com shares held short by investors – that's known as Amazon-com's "short interest". This figure is 25% up from 2.5 million last month.

There are a few different ways that this level of interest in shorting Amazon-com shares can be evaluated.

Amazon-com's "short interest ratio" (SIR)

Amazon-com's "short interest ratio" (SIR) is the quantity of Amazon-com shares currently shorted divided by the average quantity of Amazon-com shares traded daily (recently around 5.2 million). Amazon-com's SIR currently stands at 0.6. In other words for every 100,000 Amazon-com shares traded daily on the market, roughly 600 shares are currently held short.

However Amazon-com's short interest can also be evaluated against the total number of Amazon-com shares, or, against the total number of tradable Amazon-com shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Amazon-com's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Amazon-com shares in existence, roughly 10 shares are currently held short) or 0.0074% of the tradable shares (for every 100,000 tradable Amazon-com shares, roughly 7 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Amazon-com.

Find out more about how you can short Amazon-com stock.

Amazon-com's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Amazon-com.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Amazon-com's total ESG risk score

Total ESG risk: 33.42

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Amazon-com's overall score of 33.42 (as at 01/01/2019) is nothing to write home about – landing it in it in the 52nd percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Amazon-com is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Amazon-com's environmental score

Environmental score: 10.63/100

Amazon-com's environmental score of 10.63 puts it squarely in the 7th percentile of companies rated in the same sector. This could suggest that Amazon-com is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Amazon-com's social score

Social score: 18.52/100

Amazon-com's social score of 18.52 puts it squarely in the 7th percentile of companies rated in the same sector. This could suggest that Amazon-com is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Amazon-com's governance score

Governance score: 12.78/100

Amazon-com's governance score puts it squarely in the 7th percentile of companies rated in the same sector. That could suggest that Amazon-com is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Amazon-com's controversy score

Controversy score: 3/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Amazon-com scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Amazon-com hasn't always managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Amazon.com, Inc was last rated for ESG on: 2019-01-01.

Total ESG score 33.42
Total ESG percentile 52.16
Environmental score 10.63
Environmental score percentile 7
Social score 18.52
Social score percentile 7
Governance score 12.78
Governance score percentile 7
Level of controversy 3

Amazon-com share dividends

We're not expecting Amazon-com to pay a dividend over the next 12 months.

Have Amazon-com's shares ever split?

Amazon-com's shares were split on a 2:1 basis on 2 September 1999. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Amazon-com shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Amazon-com shares which in turn could have impacted Amazon-com's share price.

Amazon-com share price volatility

Over the last 12 months, Amazon-com's shares have ranged in value from as little as $1626.0318 up to $3552.25. A popular way to gauge a stock's volatility is its "beta".

AMZN.US volatility(beta: 1.3)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Amazon-com's is 1.2988. This would suggest that Amazon-com's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Amazon-com overview

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It sells merchandise and content purchased for resale from third-party sellers through physical and online stores. The company also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Rings, and Echo and other devices; provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store; and develops and produces media content. In addition, it offers programs that enable sellers to sell their products on its Websites, as well as its stores; and programs that allow authors, musicians, filmmakers, skill and app developers, and others to publish and sell content. Further, the company provides compute, storage, database, and other AWS services, as well as fulfillment, advertising, publishing, and digital content subscriptions. Additionally, it offers Amazon Prime, a membership program, which provides free shipping of various items; access to streaming of movies and TV episodes; and other services. The company also operates in the food delivery business in Bengaluru, India. It serves consumers, sellers, developers, enterprises, and content creators. The company also has utility-scale solar projects in China, Australia, and the United States. Amazon.com, Inc. has a strategic relationship with NXP Semiconductors N.V. to deliver a cloud compute solution for vehicles that enable cloud-powered services. The company was founded in 1994 and is headquartered in Seattle, Washington.

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