![]() "Be sure to keep a lookout for analyst upgrades and downgrades a few days before a company's scheduled earnings call, as these tend to set the tone for how investors are expected to react."Īnother thing to keep in mind is that Amazon isn't just a site for online shopping. "Publicly traded companies will have earnings calls every quarter to inform investors on the current health of their business," Choksi says. Another good move for developing market knowledge is to keep up with all news pertaining to that stock's industry, as well as other industries and assets, according to Choksi. One of the best ways to build confidence in your decision to buy (or sell) a stock is to thoroughly research things like the company's historical performance, earnings reports, balance sheets, and financial statements. "At the end of the day, I also recommend that investors consider meeting with a qualified wealth advisor - someone who can help assess your individual financial situation and chart a path forward to help you achieve your goals," says Choksi. The stock has proven to be particularly volatile, so it may not be a smart choice for risk-averse traders. If you're more of a long-term focused trader with an eye for less volatile investments, or if you're nearing retirement, you should exercise caution when investing in Amazon. ![]() However, not all trading platforms (e.g., Robinhood) offer joint accounts. If you'd like to trade with a partner, a joint brokerage account will be a better fit. Individual brokerage accounts are typically the best move if you're looking to trade on your own. In addition, you'll encounter multiple account types when perusing a brokerage's offerings. Many investors are quite bullish on Amazon at the moment, so there is more scope and opportunity for upside gain if you buy Amazon directly." "Funds that have exposure to Amazon often run the risk of being dragged down by other stocks and assets in the portfolio that are unrelated. "When a big-name tech giant like Amazon is attractively priced like this, with little signs of any serious cause for concern in terms of underlying fundamentals - it is always better to buy the stock directly, rather than buying into an index or mutual fund that contains Amazon," he says. However, this may not always be the best move, according to Choksi. ![]() ![]() Note: Though one approach to Amazon is to buy the company's stock directly, you can also invest in mutual funds or ETFs that contain a percentage of the company. This, he adds, has been the case with many other tech stocks, and it presents an opportunity for traders to buy Amazon stock directly at an affordable price. "Immediately after the split was executed, Amazon shares were trading at $125 per share, and have since dropped further to around $115 per share in recent days." ![]() "Buying Amazon stock directly has become a lot easier and more accessible to retail investors since their 20-for-1 stock split in early June 2022," Choksi says. And while not all brokers let you skip out on trading fees, the best platforms offer things like commission-free trading (i.e., you won't have to pay a commission each time you exchange investments like stocks, ETFs, and options), multiple account and investment types, fractional shares, and flexible customer support. If you're investing in Amazon stock for the first time, he says, you should choose a brokerage that best suits your style of investing, consider the features you want your account to include, and compare the fee structures between different brokers to determine which one best meets your needs.īrokerage accounts not only expose you to a variety of stocks, but they also let you invest in other types of assets, including ETFs, mutual funds, options, bonds, and more. ![]()
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