Amazon (AMZN) - A Report Brought to You by Q8 Trade
A brief overview of Amazon
Amazon is an e-commerce site, originally called Cadabra, was founded by businessman Jeff Bezos in 1994. Then in 1995, the company its website as Amazon which initially faced a lot of trouble but succeeded in 2010. As a global reference in the world of e-commerce, the company is headquartered in Seattle, Washington.
It started its own business as an online bookstore and in the first month of launch, it was able to sell books throughout the United States of America and in 45 countries worldwide. Then Jeff Bezos added a list of 20 products that can be marketed on the Internet. This list began to diversify including CDs, DVDs, downloading and streaming video clips, MP3 files, audio books, video games, software, electronics, furniture, clothing, jewelry, accessories and sports goods.
Amazon has separate retail locations in America, Britain, France, Germany, Canada, the Netherlands, Italy, Australia, India, Japan, China and Mexico. It also offers international shipping to a number of other countries.
It is currently one of the main shopping destinations for a very large percentage of individuals who shop online. Its number of users already exceeded 300 million and employs about 45,000 robots Inside the company’s stores.
As of this writing, Amazon is one of the largest and most important stocks in the international trading market.
Amazon’s initial public offering was in 1997. It is the second company in history to exceed $1T on September 4, 2018.
The company’s shares are also characterized by the availability of information and news related to its value.
There are so many reasons for people to invest in Amazon, the most important being that its stocks is a viable investment in the sense that it is a successful investment for the future.
How is Amazon’s stock price determined?
Amazon is a huge company whose stock price is affected by many factors.
In order to calculate Amazon’s stock price, you need to keep a close eye on the market, especially the company’s earnings reports, and try to keep an eye on the political and economic news that can have a direct impact on the share price, and these effects are usually temporary for the giant Amazon, but these external effects It gives the opportunity through the decline in the price of its shares to be seized through the traders anticipating the stock market.
The high demand to buy stocks has an automatic impact on the rise in its financial value, and in the event of a stock market recession will negatively affect the financial value of the stock to decline, ie, the policy of supply and demand is the main factor affecting its value.
Amazon’s strategy is 100%-focused on its customers’ requirements, even in terms of exclusive sales, and it always offers competitive prices on all types of products.
Is trading in Amazon shares profitable?
Investing in Amazon is not just buying shares that can be traded after a certain period, but investing in Amazon is a fragmented company worth more than $1 trillion and the second largest company in the world after Apple.
We are seeing a lot of big investors trading in the shares of Amazon and this is not strange. It is one of the largest online retail stores, in addition to its specialty in the consumer electronics sector and cloud services.
Amazon dividends are an effective long-term investment, which maintains the value of capital that is invested and can be increased.
Facts about Amazon
Amazon’s logo has an arrow representing a smile from (a) to (z) and this indicates that the company is fully prepared to provide all services to everyone worldwide.
In the first month since the company started operating, it has received orders from customers in the US exceeding 50 states and 45 countries worldwide.
Amazon was founded as a simple online retail company from the Bezos store in Bellevue, Washington and it made its founder one of the world’s richest people with an estimated net worth of $125 billion.
“Amazon” was chosen as the name of the company after Amazon River, the largest river on earth in terms of volume of discharge and basins, and the longest in the world.
The best performance in the history of Amazon
Amazon launched its shares for public subscription on May 15, 1997, starting at $18 per share, and rose at the close to the level of $ 23.50, equivalent to $1.96 after the price adjustment, in terms of market capitalization, the stock value of Amazon in the first trading session $560 million, Amazon shares are traded on the Nasdaq Stock Exchange, and the revenue of the exchange reached 16 million US dollars in the year of the offering.
The financial performance shows that Amazon was only a small company at the beginning of the establishment, in terms of sales, revenues or even the number of employees, and Amazon announced from its inception in 1997 until December 31 of the same year recorded sales of approximately $164 million.
More than 20 years after the start of Amazon, it has been able to generate revenues and revenues of more than billions of dollars.
2018 is the best performance for Amazon compared to the last five years, during which profits jumped to $10.8 billion at the end of 2018, and by the middle of this year, Amazon is very close to regaining its market value again, which is equivalent to about $1 trillion and reference to annual earnings reports show the following:
Mid-2019 earnings report: At the end of June 2019, an increase in earnings of over 19.89 percent was reported.
2018 earnings report: A 30.93 percent increase in earnings from 2017, with annual revenues of $232.887 billion.
2017 earnings report: Profit was up by 30.08 percent from 2016, with annual revenues of $177.866 billion.
2016 earnings report: An increase of 27.08 percent over 2015, this percentage annual revenue reached $135.98 billion
What factors affect Amazon’s share price?
There are many factors that affect the share price of Amazon up or down, the most important of these reasons:
- Christmas festivals are a lot of buying these days, leading to the rise of Amazon shares as a result of the huge sales of Amazon at the time of year.
- “Black Friday” is the most important day of the year as it is a global day of discounts, where the seasons of discounts increase, so the percentage of demand for purchases from Amazon increases because of discounts and offers in cooperation with merchants.
- Quarterly earnings data, earnings data affects the price of Amazon stock. If negative, this affects the share price down, and vice versa if the stock is positive.
Amazon shares traded through CFDs
CFDs are contracts that are tradable between the person who trades and the broker, trading through the exchange of the difference in the financial value at the beginning of the contract for the share, and its value at the date of expiry of this contract, without the purchase of real financial assets and ownership.
CFDs are derivatives through which a trader can take advantage of the price movement of financial instruments up or down without actually owning them.
Trading CFDs on stocks gives you access to the stock market, through trading shares of a number of the largest companies such as Amazon, and trading against movements in the price of the company’s shares, without you have real ownership of the shares of the asset you are trading, and this is one of the most important advantages Trading CFDs, the trader is protected and has nothing to do with any events that might inflict on the company such as bankruptcy or closure.
Points to know before you start trading on Amazon stocks
- Currency conversion fees are approved for traders who purchase Amazon shares outside the United States.
- Amazon has relationships with other companies.For example, Amazon uses FedEx and UPS distribution services, and the stock price is affected by what might happen to Amazon.
- Amazon offers a huge range of additional products and services, such as Amazon Eco, Kindle and Fire.
- Amazon’s popular trading hours in the US are from 4:30 pm – 11:00 pm, Monday through Friday, Mecca time.
How to trade Amazon shares through CFDs with Q8 Trade
- Select the Amazon stock which is listed on the Q8Trade platform under the Stocks category.
- Open a position and determine the purchase or sale, the amount you invest in, or leverage.
- The conclusion of a contract between you and the platform is approved including the price of opening the deal.
- A position is opened and not closed until you decide to close it or if you identify situations in which the position is automatically closed, such as a stop loss order or take profit or if the contract period expires.
- If the position is closed on a profit, you will get your return of investment but if the deal is closed on the loss, the platform charges you with the difference.
Advantages of trading CFDs with Q8 Trade
Leverage: It is one of the most important advantages of trading CFDs where using a small amount to open a large volume of transactions compared to owning the asset being traded.
For example, if the price of Amazon shares is $100, you can invest in this stock for only $50, and using a leverage 1:10 you can trade on the same stock for $500, in this way you can open trades greater than the value of your balance leverage.
The possibility of profit from decline: whether the market moves up or down you can benefit, as there are no restrictions at the beginning of the process of buying or selling, in the case if you make the first sale and believe in low prices, this is called “short sale” In this case You can then buy at a low price and record gains.
Trading a wide range of markets: Most CFD brokers offer the possibility of trading on different assets in a wide range of financial markets around the world through online trading platforms, so this diversity of investment instruments (stocks, indices, currency, commodities) CFDs provide a large sector for many investment opportunities for all traders.
No government fees: In the case of buying or selling in CFDs, this does not require any taxes to be paid such as authentication or stamp duty. This is because the trader does not have the actual assets for what he trades in. However, the gains Taxes obtained from such trading may be subject to taxes, but this shall be provided provided that they reach a minimum threshold determined by the law of the State of residence.
24/7 trading: CFD trading is available 24 hours a day, five days a week from Monday to Friday. This makes the investor free to trade at any time. Unlike traditional markets, you can continue trading CFDs even if the major markets are closed.
In the end, you must have sufficient knowledge and information on how financial derivatives work such as CFDs and the size of the potential gains and losses from trading so that you’ll know if this type of investment is appropriate for you or not.
Why should you trade Amazon stock CFDs with Q8 Trade?
Q8 Trade provides the use of leverage to increase the value of your trading capital.
This provides you with the opportunity to trade Amazon shares through CFDs as this ensures the gain of even if there is a decline in prices.
Q8 Trade offers the possibility of trading during the trading of Amazon shares without any fees or stamp, through contracts for differences, due to the reason that you do not actually own the stock.
On its website, it provides many tools that can benefit from the time of trading Amazon shares such as: prices, real-time, historical charts, everything related to the Amazon stock that can cause the impact on its performance, fees, live charts, fundamental technical analysis and more.