How to buy Amazon (AMZN) shares in Australia
Want to buy Amazon stocks but not sure how to do it? Check out this guide made specifically for Australian investors who want to start investing in Amazon shares.
This article focuses on how to buy specific securities, however, it is not a recommendation to invest in them and should not be taken as financial advice. Do your own research and make your own decisions, or even consider getting advice from a licensed financial adviser before investing.
Amazon.com Inc. ($AMZN) is a multinational technology and e-commerce company founded by Jeff Bezos. Initially an online bookstore, it has evolved into a global retail powerhouse offering a vast range of products and services. Known for innovations like Amazon Prime and Amazon Web Services (AWS), it has transformed industries and become a leader in cloud computing, entertainment, and much more.
How to buy Amazon shares in Australia
Want to start buying AMZN shares but not sure how? Learn how to buy Amazon stock on the Stake stock investing platform below.
1. Find a stock investing platform
2. Fund your account
Complete an application with your personal and financial details. Fund your account with a bank transfer, debit card or even Apple/Google Pay.
3. Search for Amazon or AMZN
Find the share by name or ticker symbol: AMZN. Do your own research to ensure it is the right investment product for your own circumstances.
4. Choose an order type and buy AMZN shares
Buy on any trading day with a market order or use a limit order to delay your purchase of AMZN shares until it reaches your desired stock price. Look into dollar cost averaging to spread out your risk, which smooths out buying at consistent intervals.
5. Monitor your investment
Optimise your portfolio by tracking how your stock and the business perform with an eye on the long term. You may be eligible for dividends and shareholder voting rights that affect your stock.
✅ Gain access to shares like Amazon, Microsoft, Apple and more when you sign up to Stake.
Amazon.com Inc. overview
Amazon.com Inc. is a multinational technology and e-commerce giant founded by in 1994 by Jeff Bezos. Headquartered in Seattle, Washington, the company has grown to become one of the most influential and valuable companies in the world. Initially starting as an online bookstore, Amazon quickly diversified its offerings and expanded into various product categories, including electronics, apparel, home goods, and more.
Today, Amazon is renowned for its vast product selection, convenience, and customer-centric approach, solidifying its position as a dominant force in the global retail industry.
At the core of Amazon's success lies its robust e-commerce platform, which enables millions of sellers and vendors to reach a massive customer base across the globe. The company's commitment to customer satisfaction is exemplified by its efficient delivery systems, including Prime, a subscription service that offers free two-day shipping, along with various other benefits like access to streaming services and exclusive deals. Amazon's relentless focus on customer experience has cultivated a loyal customer base, contributing significantly to its continued growth and expansion.
Beyond its e-commerce operations, Amazon has diversified its business interests over the years. Amazon Web Services (AWS), introduced in 2006, is the company's cloud computing division, providing a wide range of cloud-based infrastructure and services to businesses and organisations worldwide. AWS has become a crucial revenue stream for Amazon, empowering enterprises with scalable and cost-effective solutions.
In addition to its core retail and cloud businesses, Amazon has ventured into the entertainment industry, producing original content for its Amazon Prime Video streaming service. It has also acquired prominent entities like Whole Foods Market, expanding its presence in the grocery sector. The company has invested heavily in technological advancements, including artificial intelligence, drone delivery, and voice-enabled devices like the Amazon Echo, powered by its virtual assistant Alexa.
Despite its remarkable success, Amazon has faced criticism over issues such as labour practices, antitrust concerns, and environmental impact. Nevertheless, the company continues to be a major player in reshaping various industries, driving innovation, and disrupting traditional business models. With its ambitious vision and relentless pursuit of excellence, Amazon.com Inc. remains an influential force shaping the digital age and the future of retail and technology.
Amazon share price performance
Amazon's share price has a remarkable history of growth since its initial public offering (IPO) in 1997. At the time of its IPO, the stock was priced at $18 per share. Over the years, Amazon's share price has surged, reflecting the company's impressive expansion and dominance in the e-commerce and technology sectors.
In the early 2000s, Amazon faced the dot-com bubble burst, resulting in a significant drop in its stock price. However, the company weathered the storm and went on to experience substantial growth in the following years. One of the pivotal moments for Amazon's stock was its transition into a diversified company, expanding into new markets and launching innovative products and services.
In the past decade, AMZN stock witnessed exponential growth, driven by the success of its e-commerce platform, the expansion of Amazon Web Services (AWS), and its investments in various industries.
By 2021, Amazon's stock price had surpassed $180.00 per share, making it one of the most valuable publicly traded companies globally, reaching a market capitalisation of US$1.9t.
Regarding future expectations, Amazon's long-term growth prospects remain positive due to its strong market position, expanding e-commerce dominance, and flourishing cloud computing division, AWS. Investors and analysts continue to have high expectations for Amazon's ability to innovate and disrupt traditional industries further. Stake customers also sing high praise for the company, with Amazon being featured in the top 10 most traded U.S. stocks frequently.
Nevertheless, it is essential to consider that stock prices are influenced by various factors, including economic conditions, industry trends, regulatory changes, and company performance, since as these conditions change, so do price forecasts.
Amazon stock P/E ratio
As of 9 August 2023, Amazon trades at a 66 P/E ratio (forward non-GAAP metrics). The price-to-earnings ratio is constantly changing, as the share market price varies every day and new earnings reports come out every quarter. Due to its outstanding performance in the past years, investors have been willing to pay a higher price for its shares, believing future growth will justify a higher valuation.
🎓 Learn more: What is a good P/E ratio?→
As of Q2 2023, Amazon's EBITDA was US$19.27b, up 19.91% from the previous quarter.
Do Amazon shares pay dividends?
Amazon does not pay dividends to its shareholders. Historically, the company has chosen to reinvest its profits back into the business for growth and expansion rather than distributing them to shareholders in the form of dividends.
Amazon's approach is in line with the philosophy of its founder, Jeff Bezos, who has emphasised long-term growth and investment in new ventures and technologies. The company's strategy has allowed it to finance its ambitious projects, such as entering new markets, developing cutting-edge technologies, and expanding its global reach.
Instead of dividends, Amazon has rewarded its shareholders with stock price appreciation as the company's value has soared over the years. Investors have benefited from capital gains as the stock price has consistently risen due to Amazon's strong performance and dominant position in the e-commerce and cloud computing markets.
Has Amazon stock ever split?
Yes, Amazon has had multiple stock splits over the years. Here is the history of Amazon stock splits:
Which ETFs have exposure to Amazon?
There are over 230 ETFs that offer exposure to Amazon.com Inc. These ETFs include funds that track broader technology indexes, consumer discretionary sectors, and growth-focused strategies. Here are a few examples of ETFs with exposure to Amazon available to invest in:
- Invesco QQQ Trust ($QQQ): This ETF tracks the Nasdaq-100 Index, which includes 100 of the largest non-financial companies listed on the Nasdaq Stock Market. Amazon is one of the constituents of this index.
- Vanguard Information Technology ETF ($VGT): VGT seeks to track the performance of the MSCI US Investable Market Information Technology 25/50 Index. This ETF invests in various technology companies, including Amazon.
- SPDR S&P 500 ETF Trust ($SPY): SPY aims to track the performance of the S&P 500 Index, which is composed of 500 large-cap U.S. companies. Amazon is one of the components of the S&P 500.
- Consumer Discretionary Select Sector SPDR Fund ($XLY): XLY focuses on companies in the consumer discretionary sector, which includes retailers, media, and other consumer-driven industries. As a major player in the e-commerce and retail space, Amazon is a component of this ETF.
- iShares U.S. Consumer Services ETF ($IYC): IYC tracks the Dow Jones U.S. Consumer Services Index, which includes companies in the consumer services sector. Amazon's presence in online retail and other services makes it a component of this ETF.
Please note that ETF holdings can change over time due to rebalancing and changes in the composition of the underlying index. Always review the ETF's prospectus and holdings to ensure that it meets your investment objectives and provides the desired exposure to Amazon or other specific companies.
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Amazon.com Inc. FAQs
How much does it cost to buy shares in Amazon?
One Amazon share was worth US$139.97 as of 9 August 2023, but some platforms make it possible to trade fractional shares. This means you can buy and sell shares for a portion of one share, for example, you could become an Amazon shareholder by investing as little as US$10 in the stock on Stake Wall St.
Is Amazon under or overvalued?
Determining whether a stock like Amazon is undervalued or overvalued requires a comprehensive analysis of various financial metrics, market conditions, and industry trends. Additionally, individual opinions on valuation may differ among investors and analysts.
Amazon is known for its substantial growth and dominant position in the e-commerce and cloud computing markets. The company has consistently reinvested its profits to fund expansion into new businesses and technologies, which has driven its stock price to significant levels.
Stock valuation typically involves looking at key factors such as price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, earnings growth prospects, cash flow, and competitive position, among others. Comparisons to industry peers and broader market trends are also taken into account. Learn more about how to tell if a company is overvalued or undervalued.
Should I invest in Amazon or Google stock?
Both Amazon and Google are prominent technology companies with diverse business interests and strong market positions. It's essential to conduct thorough research on both companies, including analysing their financial performance, growth prospects, competitive advantages, and potential risks to define which one of them better suits your investment portfolio.
Megan is a markets analyst at Stake, with 7 years of experience in the world of investing and a Master’s degree in Business and Economics from The University of Sydney Business School. Megan has extensive knowledge of the UK markets, working as an analyst at ARCH Emerging Markets - a UK investment advisory platform focused on private equity. Previously she also worked as an analyst at Australian robo advisor Stockspot, where she researched ASX listed equities and helped construct the company's portfolios.