Opinion Graphic fall 2020

Amazon is one of the most well known companies in the world, supplying everything from clothes to entertainment. With such a strong consumer base, the company’s stock, traded under the symbol AMZN, should be a favorable investment, and the company’s recent growth may attract investors.

Amazon is best known for being an online retailer where consumers can find their every need in one place. The subscription service Amazon Prime includes free shipping on orders and other benefits, and it has helped the company achieve incredible growth over the past few years, opening the door for expansion into other markets.

The Prime bundle features Amazon Prime Video, which allows subscribers to watch a vast amount of online content including some live TV. An attractive aspect of this for some is its offering of “Thursday Night Football.”

Amazon made a bet that carrying sports on its platform would increase viewership, and so far, it has paid off. The company is now a streaming giant, competing with companies such as Netflix, which cannot offer added benefits in a subscription bundle like Amazon can.

While the company has already established itself in the streaming industry, Amazon is now looking to widen its reach and work its way into thehealth care industry. While that may sound good at first, it is important to remember the company has already tried and failed to partner with health care providers in an effort to change how the industry runs.

However, the company is trying again to gain a foothold in health care by buying into companies that have already shown some success. Amazon could one day include health care options in the Prime Bundle, with pill deliveries already available through Amazon Pharmacy.

Though Amazon is expanding into new sectors, it is still looking to improve its current operations. The company recentlyacquired a warehouse robotics company called D. Cloostermans–Huwaert NV, which it plans to use to improve and automate its logistics operations. With this acquisition, the company may save money by updating its logistics, which will offset the price it paid to purchase the company. In addition to saving money on logistics, Amazon could also offer its technology to other companies as an additional source of income.

One aspect making Amazon stock attractive is that it is not complacent with its business strategy, but rather it is seeking new opportunities for income and expanding its operations. However, if the company expands too rapidly and without care, it will stretch resources too thin and will do the company more harm than good.

Some stakeholders are also concerned that expanding into other sectors opens the company up to lawsuits. Amazon was recently sued by the state of California, which alleged the company inflated prices and stifled competition, which are antitrust violations. Other suits will likely follow this one as the company continues to expand, creating more problems in the future.

Amazon has proven it has the capacity to grow and generate revenue, which is good for its stock, but before 2022, its price held it back. Amazon stock was trading in the thousands before it underwent a 20-for-1 stock split this year.

Before the split, only large funds and investors were able to afford the stock. With the split, average investors can buy in. That will help the company perform better on exchanges as more investors are able to trade shares, which should boost the price.

It is important to analyze multiple aspects of the stock before investing. Amazon is one of the most well-known companies in the world, and for good reason. It has grown to become an online retailer giant, meaning more people will trust the company and utilize its services because it is known and familiar to them.

Their businesses will generate income for the company, which it can then use to invest in expanding into other industries. However, this growth must be done properly, or the company will be spending money on new sectors that will not generate income. While lawsuits may be a concern, the company is a good long-term investment opportunity because of its ambitious plans and current success.

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