Is It Too Late to Buy Amazon Stock?

Is It Too Late to Buy Amazon? Amazon (AMZN) CEO Jeff Bezos is the richest person in the world, with a net worth over $107 billion. The online retail bookstore he built in 1994 is now one of the biggest, most profitable corporate juggernauts in the world.

It followed Apple to become the second company in history to reach $1 trillion market value. If you invested $100 in the Amazon initial public offering (IPO) at $18 per share, you would be holding over $100,000 at today’s values.

The company disrupted the book industry, retail, cloud computing, logistics, Hollywood, and more. It’s pushing its way into other industries, from high technologies like artificial intelligence, robotics, and blockchain to pharmaceuticals, alcohol delivery, grocery, and more. Amazon has nearly 300 million square feet of warehouses, offices, retail stores, and data centers serving over 150 million paying Prime subscribers.

It’s introducing self-service stores and automated warehouses. It’s competing with Fedex, UPS, and the US Postal Service by delivering half its own packages. Alexa owns over 65% of the smart speaker market. Its video doorbell sales are skyrocketing. Amazon is winning every battle it takes on.

Of course, that’s all well and good for Bezos and other early investors, but it doesn’t help you today. If you wanted to buy stock today, even with the market crash of 2020, you’ll still pay close to $2000 per share. Is it worth that investment, or are you too late?

Is It Too Late to Buy Amazon Stock?

Most analysts believe Amazon is going to finish 2020 as one of the biggest corporate winners, despite facing massive delays in its speedy Amazon Prime delivery service during a global pandemic.

What used to be two-day service through Amazon’s fulfillment channels quickly slowed entering the second quarter. Still, the company focused on good PR moves during the novel coronavirus pandemic that will ultimately make it a good investment.

It unlocked Prime Video kids shows for anyone still not a Prime member. It prioritized shipments of medical supplies to help those in need during the outbreak and shutdown.

The company started a hiring spree and added 100,000 people to its workforce when small businesses were shut down across the country. Workers were also given overtime raises to double pay, creating media frenzies to report on its good deeds.

Indeed, as the world hunkered down to practice social distancing, we all turned to many of Amazon’s services to pass the time. This brings up the question of whether now is a good time to buy Amazon stock.

Is It a Good Time to Buy Amazon Stock?

Although it’s doing everything it can to weather the storm, Amazon isn’t immune to the market conditions pummeling everyone else. The company took massive losses like everyone else as panic selling took over Wall Street and institutional investors and politicians alike rushed to save their respective fortunes.

This mass sell-off lowered prices across the board, and that puts a deep discount on a lot of stocks that were previously unattainable.

Amazon is one of them – all signs show that the company will not only survive this market crash, but it’ll also continue to thrive. It has been steadily expanding its physical and digital footprint while optimizing logistics. Make no mistake – Amazon is a very powerful company.

Everything Amazon has strong investments in is being used during the economic slowdown: streaming video, grocery delivery, e-commerce, and pretty much anything online. In fact, Netflix, Twitch, Facebook, LinkedIn, BBC, ESPN, and more all spend millions each month on Amazon Web Services.

Amazon will continue to be affected by general market conditions, but it is in no danger of going out of business anytime soon and will likely be one of 2020s biggest corporate winners.

Is AMZN Stock a Buy?

The volatility of the 2020 stock market is unprecedented. Only four times in recorded history (WWI, the Great Depression, Black Monday 1987, 9/11) have we seen such losses, and the turbulence echoed across the globe. The Dow Jones alone recorded record-setting declines and losses. Anyone with money on the market took a hit and started closely examining their portfolios.

If you have the money to invest in something right now, analysts across the board recommend Amazon. This assumes you have enough toilet paper, food, and other essentials to survive what’s sure to be a rocky year.

Unemployment rates are expected to skyrocket to 30%, and the country is heading for economic times rougher than anything Generation Z has seen in their lives.

Still, financial security is important, and if you have $2000 to invest, Amazon accounts for approximately 38% of the U.S. e-commerce market. It has strong holdings that are doing well in this time, and it’s not completely unrealistic to think you can double or even triple your investment over the next 10 years by investing in Amazon now. Analysts across the board rate it as a buy.

Of course, if you’re holding Amazon stock, you may be wondering when to sell, and that’s what we’ll finish this guide off with.

When to Sell Amazon Stock?

If Amazon is projected to do so well, when should you sell?

The answer to that question ultimately depends on when you bought. If you bought during the IPO, you can sell today for over 1,000% gains Even if you bought Amazon stock as recently as 2015, you can sell today for a 300% profit. Although Amazon’s stock price took a massive hit in March 2020, that was based off an all-time high in January 2020.

If you purchased Amazon stock at any point prior to 2018, you can still sell today for double your initial investment. You can also do it with a clean conscience knowing your buyer has a good chance of replicating your success.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.