What are the pros and cons of investing in Amazon?


Amazon, no doubt, is a huge company. It has grown exponentially over a period of time since its inception. Here is the list of all the pros and cons which come when you are investing in AMZN stock for the first or even multiple times in your life.

Advantages of investing in the Amazon stock

  •  Profit can rise or fall:- 

Unlike any other company, Amazon’s CEO Jeff Bezos can take a lot of money that has been invested in stock, and almost 3 Billion$ is made by Amazon by just stocks.

Bezos can lead the company to be either very successful by using the money of a stock or can whether just continue the flow of money.

  • It can be disruptive:-

This means that Amazon is a company that can leave the current business its focusing on and open another business which will dominate the market.

If Amazon is focusing on home delivering products, then it can become the number one business in that sector.

  •  Power pricing :- 

This means that Amazon can increase the price of its stock in an area where there is no competition at all.

  • Price appreciation for a long time:-

This means that AMZN stock can become a very costly stock as it goes on increasing in size and also expanding its business to different cities and countries.

  • It’s a huge factor:-

This means that Amazon is the biggest E-commerce company in the US and every dollar spent on the US E-commerce website is taken over by Amazon as it is the holder of over 44% of the US economy in the E-commerce sector as people invest more money in buying thins from Amazon rather than buying it from other sites or store because Amazon is a big and very trusted company.

Disadvantages of investing in the Amazon stock

  • It is very costly:-

This means that Amazon has the prices of its stock arranged according to its sales occurred in the year, which would make it impossible for some investors to buy Amazon’s stock.

  • It’s volatile:-

This means that Amazon is a huge company can see a sharp decline in its sales almost anytime and bigger the company heavier is the loss occurred.

  • It is not different anytime:-

This means that shareholder state that Amazon’s stocks are always valued at the number of sales made by the company in the particular year, and this algorithm of Amazon’s pricing will never change making it costly.

If you want to invest in this stock, you can check AMZN stock news before that. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

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