Is Investing In Amazon Stock A Good Idea?
Is investing in Amazon a good idea?
Amazon is a large multinational company; these stocks are valuable. The company has experienced tremendous growth and change, and has proved again and again that it can benefit from early investors. Although the market is lagging behind, it seems that now is a good time to invest. Because this company is about to break the edge of new products and services. These new products and services can change our lives, increase the value of the company and its stock, and even more.
shares
At present, Amazon’s share price has not risen sharply or fallen. Amazon’s share price fell slightly from $2000 in July 2019, but it has not yet fully recovered, hovering between $1700 and $1900. At present, Amazon’s share price remains at $1.8898.00 after rising during Christmas, which may mark the beginning of recovery of Amazon’s share price. Obviously, since the establishment of the company in 1997, the stock of the company has increased significantly, but after many years of market success, it may start to slow down. The share price of competitor eBay also experienced a similar flat period, with the share price fluctuating between $27.02 and $42.00 in 2019. Although the stock price of Amazon is much higher due to the growth of online shopping, the stock price seems to be quite stagnant at present.
Capital fund
Amazon’s assets continue to grow(and significantly). In 2019, Amazon’s total assets amounted to $199 billion 99 million, of which $43.41 billion was in cash. This year alone, the amount of cash held by Amazon also increased significantly(by 45.81%), indicating that the company’s strength is growing, although the stock price is quite stagnant. Amazon’s long-term debt has decreased to US $22.472 billion since 2017, and its total debt has reached US $142.591 billion. Considering its size, this makes the company’s shareholders’ equity quite low, at US $56.58 billion. However, this figure rose to indicate that despite the relatively high debt, the size and strength of the company are still growing and will continue to grow.
Looking ahead
As a large company, Amazon is always in the leading position in order to keep pace with technological progress. With the development of Alexa, a family assistant, the service time has been shortened and a new streaming media service Prime Video has been demonstrated. It is hard to imagine that Amazon will encounter many failures in the near future. In addition, a cashless and cashless shop based on facial recognition technology, artificial intelligence and home robots has also been developed. There is no doubt that Amazon’s upcoming products will change the way our world operates and become more and more integrated into human survival itself. As a result, the company will experience huge growth that can be converted into more valuable stocks.
