Investing in Amazon: The Potential to Earn is Limitless
Amazon has always been a leader in online shopping. However, with the recent COVID-19 pandemic and shelter-in-place orders, the demand for the merchandise offered from Amazon’s online purchasing platform, streaming services, and virtually limitless supply of reading options has become imperative must-haves for many.
From an investment potential, Amazon is red-hot right now. Whether you choose to expand your portfolio to include the company’s stock or you are a seller, investing in Amazon is a win/win and projected to continue its upward trend.
The Growth and Investment Potential of Amazon
Amazon was founded in 1995 as a small online bookstore. However, it has now become an ‘everything’ store. In February of 2020, it boasted a 12-month revenue of 296 billion.
Amazon (ASDAQ:AMZN) stock went public in 1997 selling for $18 per share. Since those early days, the stock has split three times with an IPO price per share of around $1.50. However, as the new year of 2020 started to roll the stock was trading for an impressive $2,380 per share.
The gain achieved was 1.597 times the company’s split-adjusted IPO price.
Think about the potential! If you had invested $1,000 in the early days of Amazon, then you would have made an astonishing $1,586,667.
You might be thinking, ‘but that was in the early days of 2020 before the bone-chilling stock crashes that ensued due to the worldwide virus’ so how can you make that much now?
Unlike other stocks, Amazon investment potential has remained strong and become even greater.
Amazon Investment Trend
As of May 12, 2020, Amazon stock remains on an impressive uptrend that is unfazed by the current world stage.
Predictions are that as the year reaches an end there will be an increase of 33.292%. Obviously, adding Amazon stock to your portfolio holds a great deal of promise.
Buy Amazon Stock Now or Wait?
Many people might say that you don’t buy at the high. Without a doubt, it would have been better to purchase Amazon stock in January but at this point, the potential remains to go even higher.
Most stocks took a hard hit and continue to languish with dismal double-digit percentage declines. Amazon is a titan and has actually made all-time highs of up to 22 percent so far this year.
Digital shopping is hotter than ever but with America reopening many might hesitate to invest for fear that people will go back to shopping at brick and mortar stores. However, with no vaccination insight and the reality of the virus continuing to spread, many will continue to shop from the safety of their own homes. As this has now become the reality.
For many people, such as the elderly or those who are immune-compromised, digital shopping is no longer a simple preference but an essential part of life that millions currently need to ensure survival.
At this point, even with Amazon stock at an all-time high, an investor would be wise to buy now and continue to ride the upward trend well into the future.
Amazon for the Long Term
Yes, the potential to earn money with Amazon stock is impressive but it’s just the beginning. CEO Jeff Bezos said in a recent statement, “If you’re a shareowner in Amazon, you may want to take a seat because we aren’t thinking small.”
Amazon has always been a long-term investment company that shrugs off anything short term. After all, why think small when you can dream big? Amazon went on to explain that they plan to invest its $4 billion second-quarter profits into extensive and impressive coronavirus-related efforts such as buying personal protective equipment for all workers and making sure that the Amazon buildings have their own testing facilities.
Yes, rolling billions into such efforts might seem costly but it is an investment in the future of Amazon and its workers - again, think long-term.
Bezos once stated in a letter to shareholders early on in the online giant’s beginning, “We believe that a fundamental measure of our success will be the shareholder value we create over the long term. This value will be a direct result of our ability to extend and solidify our current market leadership position.”
Such simple words have paved the way for Amazon’s success and become a testimonial to its rock-solid future.
Selling on Amazon
Maybe investing in the stock market is not your cup of tea but you can still invest in Amazon as a seller. Amazon has become a worldwide e-commerce powerhouse that seems unstoppable.
At this point, it is one of the world’s largest retailers. Amazon accounts for around half of all online sales. It offers an avenue for many small to medium-sized businesses to sell on its enormous platform, so you don’t have to be a big boy to sell on Amazon and recoup an impressive amount of money.
Without a doubt, sellers took a hard hit with Amazon when they started to prioritize merchandise between those it deemed essential versus non-essential during March and part of April.
Many started to panic as they sustained financial losses because they couldn’t sell. However, the situation was short-lived, and one-month later Amazon announced that they would again serve third party sellers. Luckily, the situation for sellers was short-lived and now Amazon has risen to the challenge of continuing to offer both essential and non-essential items to its shoppers. Sellers are again making profits and the possibilities will continue to increase.
The Growth of Amazon
As the COVID-19 virus continues to grip the nation and cause staggering unemployment that surpasses that of the Great Depression, Amazon has announced that they will be hiring around 100,000 full time and part-time employees to meet the demand of their fulfillment centers and also delivery operations so potential sellers do not have to worry that the demand for Amazon’s merchandise is going to grind to a halt.
In fact, as fewer people head out to shop because of shelter-in-place orders in certain states and the fear of contracting the virus, selling on Amazon is an option for many to continue pushing their wares.
Whether you expand your portfolio to include Amazon stock or you partner up with the giant as a seller, the future looks promising from an investment standpoint. With steady growth and a dedication to the company and its employees, investing in Amazon will become a gold nugget for many.
As of there’s still time to invest!