What is Amazon?
Amazon (or amazon.com) began as an online bookstore in 1994 but has since grown into one of the world's largest and most influential e-commerce companies.
Operating as both a retailer and a marketplace, Amazon offers a vast array of products and services, ranging from books and electronics to groceries and content streaming through its Amazon Prime subscription service. To help facilitate and expedite the delivery of products to consumers, the company has a reputation for innovation in logistics, such as the implementation of drone and robotics technology in its expansive network of fulfilment centres.
In addition to its e-commerce and subscription services, Amazon has diversified into hardware with products like the Amazon Echo smart speakers and Kindle e-readers. The company's cloud computing arm, AWS, provides a wide range of services, including hosting websites and applications, processing data, and enabling artificial intelligence and machine learning capabilities for businesses. Amazon also takes on strategic acquisitions, such as its purchase of Whole Foods Market, in order to maintain its position as a dominant force in the global retail and tech sectors.
Amazon.com is listed on the NASDAQ stock exchange under the ticker symbol "AMZN".
What affects the AMZN stock price?
The stock price of amazon.com can be influenced by a wide range of factors, including:
- Earnings and financial performance: Amazon's quarterly and annual earnings reports are closely monitored by investors. If the company's financial performance exceeds or falls short of expectations, it can have a significant impact on the stock price.
- Macroeconomic factors: Economic conditions, including factors like GDP growth, interest rates, and inflation, can affect consumer spending and, consequently, Amazon's revenue and profitability.
- Competitive landscape: The e-commerce industry is highly competitive. Changes in the competitive landscape, new entrants, or disruptive technologies can impact Amazon's stock price.
- Regulatory and legal issues: Government regulations and legal challenges can impact Amazon's operations and reputation, which can, in turn, affect its stock price.
- Market sentiment: Investor sentiment and market trends can influence stock prices. Positive news or hype around Amazon's products, services, or initiatives can lead to increased demand for its shares.
- Tech sector trends: As a tech giant, Amazon is influenced by broader trends in the technology sector. Innovations, changes in consumer behaviour, or shifts in investor sentiment towards tech companies can impact their stock price.
- Consumer trends: Changes in consumer behaviour, such as increased online shopping or shifts in preferences for e-commerce over traditional retail, can affect Amazon's revenue and stock price.
- Global events: Geopolitical events, natural disasters, and global economic crises can have a widespread impact on stock markets, including Amazon's stock.
- Currency exchange rates: Amazon operates internationally, so fluctuations in currency exchange rates can affect its revenue and profitability, which in turn can influence its stock price.
- Investor expectations: The stock market is influenced by investor expectations and future outlook. Analyst recommendations, rumours, and speculation can all impact how investors perceive Amazon's prospects.
What to watch out for when trading AMZN stock?
When considering trading Amazon stock, it is important to keep an eye on announcements that can significantly impact its stock price. Here are some important things to consider:
- Amazon’s corporate earnings results (released quarterly)
- Amazon’s annual report releases
- Amazon’s corporate announcements
- News and media stories featuring Amazon