Amazon Shares: Price, Dividends and Performance
Among the major U.S. stocks most closely followed by investors are, of course, those of GAFAM and thus the giant Amazon.
How much can you make with Amazon stock?
Get up-to-date and precise information on Amazon stock with its current price, dividend yield, analysis and our opinion.
This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.
Want to buy shares in Amazon: Our key take-aways
Stock exchange: NASDAQ
- Stock index: NASDAQ 100
- Dividend 2021: $0
- Dividend forecast 2022: $0
- Performance over 1 year: -2.61%
Should I buy Amazon stock?
Amazon's past performance makes it one of the most sought-after stocks for investors with a growth strategy.
Indeed, even though Amazon does not pay any dividends to its shareholders, its share price has increased by more than 1,500% in only 10 years.
Analysts' forecasts for this stock also remain largely positive for the years to come. To invest in this growth stock, find out about the different ways to invest, as well as information about the stock's current and past performance, current analysis and analysts' forecasts for this stock.
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How can I buy shares in Amazon ?
To buy Amazon on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add Amazon to your stock portfolio.
How much are Amazon shares?
See price chart below to follow Amazon stock price in real time.
Why Amazon shares could go up:
Several current arguments resulting from the study of the economic situation of the Amazon group and its sector of activity, lean towards a rise in this share on the stock market, including
- An attractive business model: Amazon's use of third-party sellers on its platform allows it to offer a very wide range of products at particularly wide prices.
- Frequent strategic acquisitions: The company uses its cash flow to make strategic acquisitions of other companies, which allows it to both increase its market share and effectively diversify its business.
- A growing presence in digital services: after becoming a leader in online retailing, Amazon has diversified into other segments including digital services with its AWS services.
- Numerous strategic partnerships: in the same way, Amazon regularly sets up strategic partnerships that can be commercial or technological and that aim to further accelerate its growth.
- A strong international presence: the group has finally succeeded in its strategic international expansion and is now present on 5 continents and in many countries around the world.
- A leader in its market: through its numerous investments, the Amazon group has managed to stay ahead of its main competitors and is still the world leader in the online sales sector.
- An advanced logistics and distribution strategy: Amazon's business model implements an excellent mastery of logistics needs. It is associated with delivery companies and has its own warehouses for storing goods.
Why Amazon shares could go down:
In the study of Amazon's economic situation, some signals are however in favour of a decrease in the stock market price of this company:
- An online-only presence: Amazon only offers its products and services online and therefore has to face competition from physical stores whose market shares are difficult to access.
- Weak positioning in emerging markets: Amazon still concentrates a large part of its activities on the North American and European markets and has little presence in emerging markets, which means that it is losing out on strong growth opportunities.
- Numerous criticisms: in the past, Amazon has often been criticized for the treatment of its employees or for the safety and security of its customers. These criticisms have tarnished the company's brand image.
- Threatening political reforms: Governments have also targeted Amazon and are considering political reform in order to hinder its activities through allegations of fraud, tax evasion or antitrust issues.
- Unbalanced profitability by segment: While Amazon's revenue are among the largest in the world, the profitability of its online business remains low. Only the Amazon Web Services segment currently manages to generate significant margins.
Can I buy Amazon stock online?
Yes! You can buy Amazon shares online. For many buyers this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my Amazon shares?
To sell Amazon stock, you must have the stock in your portfolio. If you don't, you won't be able to short sell with a traditional investment vehicle in Canada. To speculate on the decline in the stock's price, you have two options:
- Go short with a margin account.
- Use derivatives such as CFDs or options.
What investment vehicles in Canada can hold Amazon stock?
Amazon shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
Of course, you can add Amazon shares to your stock portfolio by buying them individually through your online broker.
But it is also possible to invest in funds that include Amazon stock and other stocks in the same sector, including ETFs (Exchange Traded Funds) and FCPs (Mutual Funds).
Amazon share price history over 10 years:
|1 week||4.04%||3 428.00||2 790.00|
|1 month||0.05%||3 088.98||2 766.66|
|3 months||-12.33%||3 276.03||2 704.04|
|6 months||-12.98%||3 549.99||2 704.04|
|1 year||-2.61%||3 762.15||2 704.04|
|3 years||77.67%||3 773.08||1 586.57|
|5 years||255%||3 773.08||833.50|
|10 years||1,580.80%||3 773.08||178.04|
Amazon dividends and payment dates
In 2021, Amazon did not pay a dividend to shareholders
Indeed, Amazon is not one of the market's yield stocks because the company has never paid out any of its profits to its shareholders. This is because the company has a growth strategy and prioritizes strategic investments with its cash flow.
Although Amazon has not yet planned to pay its shareholders in 2022, it is possible that its profit distribution strategy will change in the coming years.
What is the dividend yield for Amazon over the last 10 years?
The yield on Amazon shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Good to know
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
Good to know
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about Amazon stock:
A critical analysis of Amazon stock:
Fundamental analysis of Amazon's share price seems interesting for a long-term investment but more delicate for a short-term investment with the following elements:
- A strong financial position: first of all, the company has a strong financial position with strong cash flows and high margins.
- Optimistic analyses: analysts working on this issue are generally very positive, with a consensus Buy or Overweight rating and a price target far from the current price, which suggests a significant increase in the medium-term.
- Better-than-expected earnings reports: Historically, Amazon has a tendency to report earnings above analysts' expectations.
- High earnings multiples: The expected P/E for the current year is 41.9, which suggests that the company is operating on high earnings multiples.
- High valuation: Amazon also appears to be highly valued given the size of its balance sheet and the cash flow generated by its business.
- Lowered expectations: We also note that revenue expectations have been lowered over the last 12 months by analysts who now expect a slowdown in activity.
A technical analysis of Amazon stock:
The technical analysis of Amazon stock is giving more negative signals in the medium-term and relatively positive in the long-term with the following indicators:
- The RSI is currently at 51.88, which does not give any particular signal on this stock.
- The stochastics at 9 and 6 are giving a neutral signal while the stochastic at 14 is giving an oversold signal.
- The MACD is the only oscillator that is sending a buy signal on this stock. It stands at 220.230
- The MA5, MA10 and MA20 exponential moving averages are sending a sell signal while the MA50, MA100 and MA200 are sending a buy signal.
- The next technical support levels are at 2,799.71 and 2,528.17 and the next resistance levels are at 3,309.74 and 3,548.23
Who is Amazon?
Amazon Inc. is an American company that is one of the world's leading retailers of consumer products. In addition to this main activity, the group is also developing a marketplace activity that allows individuals and distribution companies to carry out transactions to buy and sell goods and services.
The group's activities can be divided into three major product and service families, with:
- Electronic and computer products including games, cameras, PCs and laptops and peripherals, televisions, hi-fi systems, players, wireless communication products among others. The site also offers kitchen equipment, garden equipment, clothing and beauty products.
- Cultural products with books, music products, video games and DVDs.
- Other products and services, including interface and Internet application development services.
The breakdown of the group's revenue is as follows:
- Products with 51.5% of revenue
- Services with 48.5% of revenue
The company's geographical distribution breaks down as follows:
- United States: 66.8%
- Germany: 8%
- United Kingdom: 6.8%
- Japan 4.9%
- Rest of the world: 13.5%
Who are Amazon’s competitors?
Amazon has a number of serious competitors in the various segments in which it operates, the most important of which are:
- eBay: this American marketplace is a worldwide reference in the sector and a real social phenomenon with more than 185 million users worldwide.
- Alibaba: the Chinese group Alibaba is a company specialized in online activities and operates, among other things, a public marketplace aimed at simplifying exchanges between companies, payment and retail platforms as well as a search engine and cloud computing services.
- Netflix: The American multinational Netflix competes with Amazon Prime's video-on-demand services. It also specializes in the distribution and exploitation of film and television works via a dedicated platform.
- Apple: this American multinational is also competing with Amazon in the Internet services segment. It also specializes in the creation and marketing of consumer electronics products.
- Microsoft: this other American multinational specializes in computers and micro-computing and is one of the largest companies on the Nasdaq stock exchange.
- Oracle: Finally, Oracle is an American company that mainly offers a database management system and an application server and competes with Amazon's cloud computing services.
Who are Amazon’s partners?
The Amazon group also regularly sets up strategic partnerships with other companies and thus has some allies, of which here are some examples:
- Stellantis: the two companies have entered into a partnership in the field of connected vehicle interiors by pooling their respective know-how.
- Slack: Another partnership has been signed with the professional messaging platform Slack, this time in the area of enterprise software. Thanks to this alliance, Amazon employees will be able to use Slack as an internal communication tool.
- Rivian: the most recent car manufacturer on the market has also set up a partnership with Amazon, which will order electric delivery vans as part of its carbon neutrality by 2040.
- VMware: A recent partnership has also been established between Amazon Web Services and VMware to simplify the journey to the hybrid cloud by matching applications to the best environment and simplifying management based on consistent operations.
- BlackBerry: the two companies have been working together since 2020 under a contract to develop and market a platform dedicated to connected vehicles capable of centralizing the data received by the various sensors and adapting according to this information.
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