Despite the downward correction of the Nasdaq, in recent days investors have confirmed the trust for the Amazon title. On the other hand, Jeff Bezos' giant has recently presented one record quarterly, with revenues tripled and profits above expectations, in which the growth of the cloud sector led by the next CEO of the American group, Andy Jassy, was confirmed. The number of subscribers to the Amazon Prime service has also increased, with more than 200 million subscribers for the package that includes Prime Video, Prime Reading and Amazon Music.
In particular, the extremely good performance of Amazon Web Services, the department for cloud-based solutions, represent one of the strengths of the US giant. The growth prospects for the next few years are significant, considering the forecasts of the experts who see a considerable increase in the demand for cloud computing technologies.
How to evaluate the best time to invest in Amazon stock
According to JP Morgan experts Amazon is the most promising company among the FAANGs, i.e. Facebook, Apple, Amazon, Netflix and Google, with a potential to grow in 2021 up to 30%. Obviously, each investor must carry out his own analyzes and establish a specific entry price, depending on his own operating strategies, to determine what is the appropriate price to enter and buy Amazon shares. Without a doubt, the stock is a great asset for many portfolios, but it is crucial buy at the right price, based on your investment objectives and the type of approach you take to trade AMZN.
In this guide by the professionals of Mercati24.com, which explains how buy Amazon shares online, the importance of carrying out in-depth studies of technical and fundamental analysis before carrying out any type of operation. Technical analysis is especially useful in online trading, to speculate on the price trend of the American company with upward or downward positions depending on the trend. Fundamental analysis is indispensable for value investing and position trading, to understand the actual potential of the company in the long term.
Evaluating the right price at which one is willing to pay for a share is not easy, in fact there is not just a single method, but each investor uses a series of parameters according to the type of information they want to obtain. The data that can be used for this analysis process are many, such as the price/earnings ratio o P/E, the dividend yield if the objective is to hold the stock in the portfolio for many years, the business growth in recent years, debt sustainability and of course historical earnings performance as well.
After that, a number of factors related to the quality of governance and management, the reference market, the competition and the strength of the brand, all aspects to consider in your fundamental analysis of the Amazon stock. According to some analysts, the recent drop in the share price could encourage new investments, as the decrease in the quotation has undoubtedly made the title more intriguing and accessible. In any case, it always and exclusively depends on your specific needs, since a price that for some traders could be convenient for others could instead be too high.
How to invest in Amazon stock: online or long-term trading?
The forecasts of the most important international analysts and investors regarding Amazon are quite positive, however it is undeniable that in the short term the company could go through a period of strong turbulence. First, the still remains open node on trade unions, despite the recent victory scored by the American giant. Also, reopenings in the US and Europe could reduce online shopping in the coming months, as will the requests for cloud services and audio and video streaming, partially compromising the particularly generous growth estimates for 2021.
Many traders are opting for the right now CFD trading, to trade contracts for difference on price movements by taking advantage of the increase in volatility on the financial markets. Others, however, are waiting for a more substantial drop in price for put the stock in the portfolioconfident of Amazon's growth potential in the long term. In both cases, the shares of the American giant remain among the most popular stock market assets, especially in the retail sector, without forgetting that both in investments and in online trading money management is essential for correct risk management.
