Best Places To Trade Amazon Stock

Amazon Stock - Why the Internet Giant Continues to See its Price Soar

There will be very few people who have not used Amazon’s delivery service and fewer still that have never heard of the tech company. During the pandemic, huge numbers of people turned to Amazon trader app to bring them goods that they could not leave the house to buy when only essential shops were allowed to stay open.

But does that necessarily mean, now that the pandemic restrictions are largely being relaxed around the globe as a mass scale vaccination programme continues, that Amazon remains a company with growth potential? And will that growth be reflected in a healthy and ever increasing stock market price?

The answers to those questions will largely depend on how you view the future, Amazon’s shares future against the global economic backdrop and then how the two interlink. Remember, not all investments will be suitable for every investor - even if their potential for growth looks high. It is important to consider all investments with respect to your own risk profile and while remembering that investments can go down in price as well as up.

Amazon: The Lowdown

Amazon was founded by Jeff Bezos, originally selling only books. That product line soon grew to selling electronics as well as software and then on to almost anything imaginable that can be sold legally. It now also provides a whole range of services from cloud storage, streaming services and one of the quickest delivery systems through Amazon Prime.

In 2020, it recorded revenue of just over $380billion and has helped to make Jeff Bezos the richest person in the world.

Why the Big Fuss?

So how has the fledgling book seller turned into such a global phenomenon? That could largely be down to the company not being scared to expand into product lines and then entire industries where ecommerce companies have never gone before - and then adding value to its users’ lives through the ease it provides them. Amazon Prime’s quick delivery system is a prime example (excuse the pun), as well as its streaming service and cloud storage.

No one could have foreseen when Bezos started selling books from his garage, that this is where the company would end up. But now, its whole suite of products and services dovetail into one another making Amazon trader app the go to provider that huge swathes of the population try first in their search for all manner of things. Ask yourself, what does Amazon not provide?

Buy Amazon Shares UK?

While its provision of goods and services is a big driver of the company’s success, why has it done so well recently? For, the company enjoyed a 12% rise in its profits in April alone.

Well, the company is no doubt riding a positive news wave on the back of great numbers being released by the White House in the form of Biden’s $2.3trillion infrastructure plan and improving jobs numbers. Not only does that mean that more of the US population will have cash to buy goods on Amazon trader app , it also means that delivering goods will become easier. Improved roads and internet wiring means that providing services and products to customers will only become a more streamlined task.

That being said, while that may seem all rosey, Amazon does have challenges ahead though. It has to sustain those strong first quarter earnings it has seen in 2021 and much of 2020. While the world returns to a more normal way of doing business, bricks and mortars shops will start to see people leave their homes and start purchasing from them again - detracting from Amazon’s customer base. For, the human population is a naturally social species. Ultimately, shopping and being with one another is something that Bezos has yet to be able to replicate perfectly through its vast online offering.