Did you know that Amazon first launched in the early 90s as a website that only sold books? Jeff Bezos had huge plans and a vision that Amazon would eventually have e-commerce domination, and since its launch, he has succeeded. If you are considering investing in Amazon stocks, you are in the right place.

Keep reading to learn a few things you want to consider before you invest in Amazon stock.

1. Growth Opportunities

Amazon started the year off with plans to expand its virtual health care program across the United States and it is also planning on expanding its prescription drug business. Its telehealth program is called Amazon Care and it is in the works to expand to all of its employees in the United States and their families by this summer of 2021.

Amazon Care has the ability to dispatch a medical professional to a patient’s home for additional care as needed. These two plans will definitely be a positive factor if you are wondering “will Amazon stock go up?”

2. How Much to Invest

If you are not sure how much you should invest in Amazon the truth is that you have to look at your own finances to decide how much money you can afford to live without for a while. The stock market is considered a long-term investment so, do not use money that you are going to need in the next five years.

If you can’t afford an entire stock because of the current price of Amazon then you can look into fractional shares instead. This lets you purchase a piece of a share vs a whole one. Although not every broker offers fractional shares they are becoming more common.

3. Prescription Medicines Market

Something we touched on earlier is that Amazon is tapping into the billion-dollar market for prescription medicines with their Amazon Pharmacy launch. This service will offer Prime members up to 40% off brand medications and up to 80% off generic brandmedicines.

This factor makes Amazon an even more appealing stock to invest in.

4. Diversification

Another factor to take into consideration is that Amazon is not afraid to diversify and grow. When you invest in Amazon you are in essence diversified across a large variety of different businesses and industries. You are putting your money into everything from online shopping to telehealth to prescriptionmedicines to cloud computing, plus more.

Their willingness to diversify is why Amazon Prime has over 100 million paying members. Even during the pandemic, Amazon was not affected because they were in a sense ready by not having a physical sticks and bricks store.

Investing in Amazon Stocks: Are You Ready?

We hope that now that you have the top factors to consider when investing in Amazon, you can make an informed decision of whether or not you should invest.

Did you find this article helpful? Please keep browsing the rest of this section for some more investing and financial tips.

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