How to buy shares in Amazon from New Zealand
- 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.
- 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.
- Search for Amazon Find the stock by name or ticker symbol: AMZN. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Amazon reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of USD$3057.1599, 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, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Amazon. 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.
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Amazon share priceUse our graph to track the performance of AMZN stocks over time.
Amazon shares at a glance
|52-week range||USD$1626.0318 - USD$3552.25|
|50-day moving average||USD$3241.1506|
|200-day moving average||USD$3209.4976|
|Wall St. target price||USD$3999.36|
|Dividend yield||N/A (0%)|
|Earnings per share (TTM)||USD$41.83|
Amazon price performance over time
|1 week (2021-03-02)||-4.61%|
|1 month (2021-02-09)||-10.68%|
|3 months (2020-12-09)||-4.90%|
|6 months (2020-09-09)||-9.69%|
|1 year (2020-03-09)||63.94%|
|2 years (2019-03-08)||82.13%|
|3 years (2018-03-09)||86.96%|
|5 years (2016-03-09)||427.63%|
Is Amazon under- or over-valued?
Valuing Amazon stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Amazon's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Amazon's P/E ratio
Amazon's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 74x. In other words, Amazon shares trade at around 74x 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's PEG ratio
Amazon's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.4928. 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'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's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$48.1 billion.
The EBITDA is a measure of a Amazon's overall financial performance and is widely used to measure a its profitability.
Shorting Amazon shares
There are currently 3.8 million Amazon shares held short by investors – that's known as Amazon's "short interest". This figure is 14.5% up from 3.3 million last month.
There are a few different ways that this level of interest in shorting Amazon shares can be evaluated.
Amazon's "short interest ratio" (SIR)
Amazon's "short interest ratio" (SIR) is the quantity of Amazon shares currently shorted divided by the average quantity of Amazon shares traded daily (recently around 3.8 million). Amazon's SIR currently stands at 0.99. In other words for every 100,000 Amazon shares traded daily on the market, roughly 990 shares are currently held short.
However Amazon's short interest can also be evaluated against the total number of Amazon shares, or, against the total number of tradable Amazon shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Amazon's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Amazon shares in existence, roughly 10 shares are currently held short) or 0.0089% of the tradable shares (for every 100,000 tradable Amazon shares, roughly 9 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.
Frequently asked questions
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