Investing in Amazon Stock Now:- Investing in Amazon stock can be an ideal way to get involved with an ever-expanding company like Amazon, which has established itself by offering an expansive array of goods and services from online shopping to cloud computing services.
Amazon boasts a market cap of more than $1 trillion and its stock offers an effective way to diversify your portfolio. Here are eight reasons why now is an opportune time to invest in its shares: from its wide array of services and consistent revenue growth, investing in Amazon now may prove one of the smartest decisions of 2018.
Invest In Amazon Stock Now:-
1. Amazon’s Diversification Of Services
One of the many benefits of Amazon stock is that the company has expanded the services it offers customers. While initially an online retailer, Amazon has since grown into offering many more services. Amazon Web Services (AWS), is now the industry leader when it comes to providing cloud computing solutions to businesses, governments, and individuals worldwide.
Amazon Web Services (AWS) has proven itself as an incredibly dependable platform, becoming an integral component of digital infrastructure for countless businesses. Amazon Marketing Services, or AMS, also serves as a significant revenue generator. As part of their diversification into new markets, this advertising platform provides businesses with advertisements directly through Amazon without needing to manage it themselves – an example of their commitment to self-service solutions that allow businesses to purchase advertisements quickly from AMS without worrying about technical details like banner placement and targeting options themselves.
2. Amazon’s Expansion Of Prime Membership
Amazon has seen great success through their Prime membership program. Prime memberships provide members with access to an array of benefits – free two-day shipping, same-day grocery delivery in certain cities, streaming TV shows and movies, exclusive offers and more!
Prime memberships are immensely popular because they provide great value to people who frequently shop Amazon. More recently, Amazon expanded Prime membership benefits to Whole Foods customers after it acquired that store in August 2017, giving Prime members exclusive discounts at Whole Foods stores – another way it expands the reach of its membership program.
3. Amazon’s Leadership In Cloud Computing
Amazon’s leadership in cloud computing is one of the main reasons investors remain optimistic about its stock. Cloud computing has become an integral component of digital economies like our own thanks to companies such as Amazon – providing companies with remote access to their data, files and programs via internet-based computing systems such as theirs.
Cloud computing has proven itself as a secure method for handling information and has made expanding businesses much simpler. Amazon has led the charge in this space by developing reliable cloud services; therefore, Amazon stands a good chance of continuing its expansion into this space over time.
4. Amazon’s Growing Advertising Platform
Amazon has also expanded its services through the growth of its advertising platform, Amazon Media Services (AMS). Revenue generated from AMS saw an astounding 50% year-on-year rise between 2017 and 2018. As one of Amazon’s primary sources of income, AMS is an integral component to overall company expansion; offering services for brands of all sizes through expansion initiatives.
Amazon recently unveiled Amazon Media Solutions, an advertising platform allowing brands to create and distribute advertisements across its network. Companies using this tool can reach customers while helping Amazon increase its advertising revenues; their advertising business has seen impressive growth recently and this trend may continue in future years.
5. Amazon’s Robust Balance Sheet
Amazon investors appreciate its strong balance sheet. A balance sheet is a measure of financial health that calculates using assets minus liabilities divided by equity; assets may include cash, inventory, property or anything that can be converted to cash quickly.
Liabilities include loans or debts that must be repaid at some point in the future, while equity can be calculated by taking a company’s total value, subtracting its liabilities and then dividing that figure by its outstanding shares. Amazon boasts a robust balance sheet which gives investors confidence in its financial health – something especially vital when investing in stocks to reduce risks and losses.
6. Amazon’s Growing Market Share
Amazon stock offers another compelling reason for investment: Amazon continues to expand its market share across various industries. Amazon leads in online retail sales with 43% market share and shows no sign of slowing. Cloud computing services have also grown increasingly popular and Amazon now holds 32% market share while Microsoft only holds 10%; thus making Amazon an appealing investment and likely to see revenues continue increasing over time.
7. Amazon’s Expansion Into New Markets
Investors also appreciate Amazon’s expansion into new markets. Amazon has expanded beyond online retail to expand into everything from groceries to streaming video – and has successfully captured 40% of the online grocery market thanks to the ease and convenience of shopping online for groceries. Their Prime Video streaming video service is making waves too; drawing new customers in with its revolutionary features. Amazon’s expansion into new markets should drive future growth!
8. Amazon’s Steady Growth In Revenue
Amazon is known for its steady revenue growth since going public in 1997. Since 2008 when revenue suffered due to economic recession, however, its revenue has seen double-digit increases every year and this consistent revenue increase provides another compelling argument to invest in Amazon stock.
Consider these eight reasons to invest in Amazon stock and it becomes clear why so many are optimistic about its future. Amazon has established itself as an integral player in global economic development over recent years and may continue to do so over time. Amazon stocks are an ideal way to diversify portfolios.
Also read:- 5 Reasons Why Investing in Netflix Is A Smart Decision
