Should you buy NASDAQ: AMZN at the current level?
Over the next several years, Amazon will become a steady buy-in. Huge numbers, good financial position, Amazon’s future prospects are good, that’s why investors and the media have a very positive opinion about the company.
Investors should note that without the help of the pandemic, sales could increase even further. The only benefit of these pandemic sales is that they give Amazon time to rest, and if a pandemic doesn’t occur, sales growth could slow. In 2019, the revenue growth rate of the retail business increased by 18.5% over the same period last year. This is a drop from the annual growth rate of about 29% in 2018 and 30% in 2017.
However, as mentioned earlier, the relatively small revenue generated by AWS out most of the company’s profits. As long as this business division can maintain high growth rates, Amazon shares will continue to benefit. Knowing this, it’s not uncommon for some analysts to see a huge gain on Amazon.
While the pandemic helped Amazon (Amazon stock) increase sales, the pandemic of covid-19 has generated such order that the business has seen a boost in shipping delays and out of the store. This factor is costing customers. Having said that, too much demand can be a good one, and many capitalists continue to buy, thus causing the e-commerce website business to hit record highs in 2020.
Product Mix of Amazon.com Inc.
One of the reasons to move elsewhere is diversification, or simply not putting all your eggs in one basket. If all your money is in one stock, the risk of loss increases. Diversify your portfolio of stocks or hold a range of stocks in different sectors to prevent the risk of a stock’s underperformance. It also offers more ways for your money to work for you. Beginning investors may be wronged by the hype. One the other hand, investing large sums of money in a seemingly attractive high-growth company. However, mixing high-value and high-growth stocks or low-risk and high-risk stocks is a better way to succeed as an investor.
Amazon stock is still in the growth phase. However, many investors today choose to invest in short-term investments, and current investment risks are higher. Income disappoints Wall Street. Amazon has plenty of room for growth but in the short-term, you may not see huge differences. We are still bullish on Amazon.com, Inc. and expecting the share can touch to a new high in three years. However, you need to cautious before investing. You can get more information from AMZN news.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.