How To Buy Amazon Stock: A Guide To Investing in the eCommerce Giant

As one of the most successful eCommerce companies in the world, Amazon is a popular stock to invest in. 

In this guide, we will walk you through the process of investing in Amazon and provide information on some of the best brokerages for doing so. We'll also give you some helpful tips to keep in mind while investing. So let's get started!

Amazon Overview

Amazon is an American multinational technology company based in Seattle that focuses on eCommerce, cloud computing, digital streaming, and artificial intelligence. 

Amazon was founded by Jeff Bezos in 1994 as an online bookstore and has since expanded to a range of products and services, including video and audio streaming, cloud computing, and artificial intelligence. 

In 2023, Amazon reached a net revenue of $574.78 billion, and as of October 2024, Amazon’s market cap was more than $2 trillion. This made it the world's largest online marketplace as measured by revenue and also the largest as measured by market capitalization.

Amazon is the largest Internet company by revenue in the world. It also owns several subsidiary companies, including Whole Foods Market, Zappos, Souq.com, Quidsi, Twitch, etc.

Amazon Stock Price History

As a company that has been in business for over 25 years, Amazon has a long history of ups and downs. After going public in 1997 at $18 per share, the price reached an all-time high closing price of $106.69 in December 1999. It did drop to $76.13 by the year’s end, but you still would have made a tidy sum if you’d invested when it first started.

This was also the last time to make good bucks in the early years, as the stock then plummeted and didn’t recover until late 2001. From there, the price slowly climbed back up, reaching $44.82 per share by January 31. 2006. In October 2007, the stock price went over $100 per share for the first time since December 1999.

Then, of course, came the Great Recession of 2008-2009, when the stock market crashed, and Amazon’s stock price fell to a low of $57.24 by the end of November 2008. After recovering, the value of the shares started ballooning, reaching an all-time high closing price of $3,731.41 on July 08, 2021.

In 2022, Amazon split the stock 20-for-1. By the end of 2024, the company's stock was worth $223.79, which represented a 49.26% increase compared to 2023.

How To Buy Amazon Stocks

Here's a quick overview of the steps you'll need to take.

1. Open an Account With a Broker

To start the procedure, you will first need to open an account with a broker. There are many different ones out there, so it's important to compare options and find one that best suits your needs. 

You should consider factors like fees, customer service, and account minimums when making your decision. Avoid brokers with high fees or hidden charges, as this will eat into your profits. That is why it is crucial to carefully review the terms and conditions of each broker to find the most reliable and transparent one.

2. Think About Your Investment Budget

Once you have found the broker, the next step is thinking about how much money you're willing to invest and what your investment goals are. Are you looking to generate income, or are you more focused on long-term growth? 

It is vital to have a clear idea of what you want to achieve before investing. If you're having trouble deciding, you can always consult with a financial advisor for help.

3. Determine How Many Shares You Want To Buy

Next, you need to decide how many shares you want to purchase. This will depend on your investment budget and your goals for the investment. 

If you're looking to play the long game, you may want to consider buying more shares while they’ve gone down in price a bit. If you're worried about the volatility of Amazon’s shares and wish to diversify your portfolio more, it’s best to go in with a smaller initial purchase.

4. Execute the Trade 

Once you have decided how many shares you want to buy, it's time to execute the trade. You will need to provide your broker with some basic information, including the number of shares you want to purchase and your price limit. Once the trade is executed, the shares will be deposited into your brokerage account.

5. Monitor Your Investment

After you purchase the stock, it's essential to monitor your investment and ensure that it is performing in line with your expectations. 

You should keep an eye on the company's financial reports and its overall performance on the stock market. If you're not happy with how your investment is performing, you can always sell your shares and reinvest the money elsewhere.

Reasons To Invest in Amazon 

Amazon has been one of the most successful companies of the past few decades, and it shows no signs of slowing down. Here are some reasons investors should consider putting their money into its stock:

Cutting-Edge Tech

From artificial intelligence to cloud computing and robotics, Amazon is at the forefront of some of the most exciting fields in the tech industry. This gives the company a significant competitive advantage and positions it well for continued growth.

Consumer Loyalty

Another thing that makes the stock an attractive investment is the company’s incredibly loyal customer base. In addition to offering exceptional service and selection, Amazon also offers Prime, a subscription service that provides free shipping and other benefits.

Prime customers are some of the most valuable customers in retail, and they are highly likely to continue using Amazon in the future.

Amazon Web Services (AWS)

Web Services are another key growth driver for Amazon. AWS is a cloud computing platform that provides businesses with on-demand access to various services, including storage and analytics. It is a significant revenue source for Amazon and continues to grow at an impressive rate.

New Market Expansion

Amazon is expanding rapidly into new markets. In recent years, the company has made significant headway in areas like fashion and grocery delivery. These new businesses should provide substantial growth opportunities for Amazon going forward.

As you can see, there are many reasons to believe that the company will continue performing well in the years to come. If you're looking for a growth stock to add to your portfolio, Amazon is definitely worth considering.

Helpful Tips

If you're considering investing in this tech and retail giant, there are a few things you should keep in mind. 

First, it's important to remember that Amazon is a highly volatile stock. This means that prices can fluctuate significantly from day to day. It's essential to be comfortable with this level of risk before making any investment. 

Second, it's crucial to have a clear investment strategy. Amazon is not a short-term stock, and investors should be prepared to hold onto their shares for at least several years if they want to make the most of them.

If you decide to purchase shares online, remember that you don't need to buy many of them to see significant gains. With Amazon's high stock price, even a small stock investment can generate substantial returns. 

You can also consider investing through a mutual fund or an ETF. This can be a good way to diversify your portfolio and reduce risk. 

Finally, you should monitor the company closely. Amazon is constantly evolving, and it's important to stay up-to-date on any new developments that could affect the value of your investment.