Stock Leading Future Shopping Trends: AMZN Investment Reasons and Prospects
Amazon.com (AMZN) is a global company that provides various products and services through its website. Founded in 1994, it has continued to grow and currently has over 1.6 billion customers worldwide. We will explore the Amazon.com stock outlook, financial analysis, and reasons for recommendation.
Amazon.com’s main business is online sales. Amazon.com operates an online shopping mall that sells and delivers products primarily via the internet. They sell a wide variety of products, including books, records, books, electronics, appliances, clothing, and groceries. Additionally, Amazon.com is actively expanding their business in the cloud computing field with AWS (Amazon Web Services), which provides various products and services.
Amazon.com aims to increase customer satisfaction and experience. To achieve this, Amazon.com operates various systems, such as fast delivery, various payment methods, affordable prices, and customer service.
Amazon.com’s stock shows stable growth. As of March 2021, the stock price is in the $3000 range, making it one of the most popular global companies. With Amazon.com’s stable growth and strong performance in various business fields, it has gained the attention of investors.
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Analysis of Amazon.com’s main business
Amazon.com (AMZN)’s main business is online sales. Amazon.com operates an online shopping mall that sells and delivers products over the Internet. It sells a variety of products, including books, records, books, electronics, home appliances, clothing, groceries, and more. Although Amazon.com does not produce its own products, it sells products from partner companies along with its own.
In addition to online sales, Amazon.com is actively expanding its business in the field of cloud computing with AWS (Amazon Web Services). AWS is a global infrastructure that provides cloud-based services, allowing businesses to build their IT systems on a cloud-based platform and providing various services. This enables businesses to reduce costs and enhance security and performance.
Amazon.com is expanding its business in various fields, focusing on online sales and cloud computing. Additionally, Amazon.com actively utilizes the latest technologies such as machine learning, artificial intelligence, and big data to improve customer experience and increase the quality of its products and services.
Amazon.com’s main business is showing stable growth, especially in online shopping and cloud computing sectors, which have shown high growth rates since the COVID-19 pandemic. As a result, Amazon.com is one of the popular companies in the stock market.
Competitors and Financial Analysis of Amazon.com
There are various competitors to Amazon.com (AMZN). Large retail companies that operate traditional offline stores, such as Walmart (WMT) and Target (TGT), are among them. In addition, in the online shopping mall sector, Coupang (CPNG), eBay (EBAY), and Alibaba Group (BABA) are considered as competitors.
All of these competitors sell their own products and strive to establish logistics systems for product delivery. Among them, Coupang is the most similar competitor to Amazon.com, as Coupang also operates online sales and logistics systems.
Amazon.com’s main products are online sales and AWS cloud computing, both of which are showing continuous growth. In particular, along with the increase in online shopping due to COVID-19, AWS cloud computing is also showing a high growth rate.
Amazon.com maintains a very stable financial position. As of the second quarter of 2021, Amazon.com’s revenue reached $113.9 billion, with an operating profit of $7 billion. Additionally, Amazon.com is continually expanding into new business areas and improving existing products and services, enabling the company to maintain its stable financial position.
Reasons to Recommend Amazon.com Stock
- Amazon.com’s main products are online sales and AWS cloud computing, both of which are showing continuous growth. In particular, along with the increase in online shopping due to COVID-19, the AWS cloud computing field is also showing high growth.
- Amazon.com maintains a very stable financial status. As of the second quarter of 2021, Amazon.com’s revenue reached $113.9 billion, with an operating profit of $7 billion. In addition, Amazon.com is continuously expanding into new business areas and improving products and services in existing business areas, thus maintaining a stable financial status.
Reference for Buying Amazon.com Stock
- Competition with other companies: Amazon.com operates in a highly competitive market and may be affected by the influence of other competing companies.
- Global economic situation: Amazon.com is exposed to changes in the global economic situation. Therefore, investment decisions should consider economic risks.
- Stock price volatility: Amazon.com’s stock price is highly volatile. Therefore, when investing, strategies to cope with stock price volatility should be considered.
Therefore, before investing in Amazon.com’s stock, it is important to comprehensively consider comparative analysis with competing companies, Amazon.com’s financial condition, and the global economic situation.
Amazon.com Stock Outlook and Investment Recommendation
Amazon.com (AMZN) has grown into one of the largest internet retailers in the world. Therefore, it is essential to establish investment strategies for this stock from a short-, medium-, and long-term perspective. Let’s take a look at the outlook for Amazon.com stock and its investment recommendations.
In the short term, the current stock price has been showing a continuous upward trend, and profitability is expected to increase as online shopping continues to grow. Therefore, it may be recommended to buy stocks in the short term.
In the mid-term, it is expected to continue growing by entering new markets and business fields while maintaining competitiveness with other competitors. In addition, efforts to increase profitability through cloud computing businesses like Amazon Web Services (AWS) are expected to continue. Therefore, buying stocks in the mid-term may also be recommended.
In the long term, it is highly likely to grow into one of the largest retail companies worldwide. In addition, there is a high potential for development in fields such as artificial intelligence, robotics, and autonomous driving. However, investment costs for entering new markets or expanding businesses are expected to be high, and competition with other competitors is expected to be intense. Therefore, a proactive research is necessary before making a decision to buy stocks from a long-term perspective.
Recently, various securities firms have released investment recommendations and target stock prices for Amazon.com’s stock. For example, JP Morgan evaluates the growth potential of Amazon.com, including its AWS and digital advertising businesses, positively, and has set a target stock price of $4,500. In addition, Goldman Sachs and UBS also recommend buying Amazon.com’s stock, with target stock prices of $4,600 and $4,700, respectively.
However, investors always need to decide whether to buy or sell stocks according to their investment goals and situations. Short-term investors should establish a buy and sell strategy based on short-term stock price increases, while long-term investors should consider the company’s financial status, growth prospects, and competitive relationships before making investment decisions. Therefore, investors should seek professional investment advice or refer to various sources of information to establish an investment strategy that suits them.
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