AMAZON

A complete guide on Amazon shares

The world of online shopping is dominated by one name: Amazon. This retail behemoth has not only transformed the way we purchase goods, but its stock has also become a legend in investor circles.

Traded on the NASDAQ stock exchange under the ticker symbol AMZN, Amazon’s success story is further cemented by its inclusion in the prestigious Dow Jones Industrial Average in February 2024.

Are you curious about how Amazon continues to grow and how you can potentially profit from its journey?

This comprehensive guide will equip you with the knowledge to navigate the exciting world of Amazon share CFDs.

  • Beyond the shopping cart

    Amazon’s colossal market cap of approximately USD 2 trillion in 2024 solidifies its status as a business behemoth. Renowned for revolutionising online shopping, Amazon’s fame arises from its unrivalled dominance in e-commerce and a relentless commitment to innovation.

    Beyond its e-commerce stronghold, Amazon’s diversified portfolio includes the highly profitable Amazon Web Services (AWS) and ventures into artificial intelligence, logistics, and streaming services. This diversification not only mitigates risk but also fuels exciting growth prospects, making Amazon a compelling investment option.

    Let’s not forget the impressive historical growth of Amazon’s stock price. It’s a member of the prestigious FAANG group, an acronym for Facebook (now Meta Platforms), Amazon, Apple, Netflix, and Alphabet (Google’s parent company). These tech giants have been superstars in the stock market, known for their meteoric rise in recent decades.

  • Factors influencing Amazon shares’ value

    E-commerce growth: As the online shopping landscape continues to expand, Amazon’s success hinges on its ability to capture a growing share of the market. Strong e-commerce growth translates to a positive outlook for the company, potentially boosting its stock price.

    AWS performance: Amazon Web Services (AWS) has become a significant contributor to the company’s revenue and profitability. Solid performance from AWS instils confidence in investors and can positively influence the share price.

    Market sentiment: Overall market sentiment plays a crucial role. During bullish periods, investor optimism can drive Amazon’s share price upwards. Conversely, a bearish market can lead to a decline.

    Innovation and expansion: Investors closely watch Amazon’s ventures into new markets and technologies. Successful ventures into areas like artificial intelligence, logistics, and streaming services can significantly impact the stock price by demonstrating the company’s potential for continued growth.

  • Best timing to trade Amazon shares

    Earnings reports: Strong earnings reports often lead to price surges.

    Product launches: Anticipation around new product launches can drive the stock price up.

    Market corrections: Market downturns can present buying opportunities for long-term investors.

  • Best strategies to trade Amazon share CFDs

    Trend following: Use technical indicators and price analysis to identify market trends. Enter long positions in uptrends and short positions in downtrends for potential profits.

    Earnings volatility: Anticipate and capitalise on significant price fluctuations triggered by earnings reports with share CFDs. For instance, enter a long position before a positive report’s release.

    Swing trading: Capture short-term price swings within larger trends. Hold positions for days or weeks, utilising technical analysis to pinpoint entry and exit points.

  • Benefits of trading Amazon share CFDs

    Growth potential: Amazon has a history of impressive stock price growth, being part of the FAANG group known for significant gains.

    Market leader: Amazon holds a dominant position in online retail and keeps expanding its reach into cloud computing (AWS) and other areas. This leadership can translate to share price appreciation.

    Liquidity: Amazon is a highly traded stock, making it easy to enter and exit positions quickly with minimal impact on the price. Potential for short-term gains: Active trading strategies like swing trading aim to capitalise on short-term price fluctuations of Amazon shares.

    Leverage: CFD trading allows you to control a larger position in Amazon shares with a smaller amount of capital. This can magnify your potential profits if the stock price moves in your favour.

  • List of tools for trading Amazon shares

    Live market data: Stay up-to-date on Amazon’s share price and market movements.

    Technical analysis tools: Utilise charts and indicators to identify potential trading opportunities.

    Economic calendar: Monitor upcoming events that could impact Amazon’s share price.

    Risk management tools: Employ stop-loss and take-profit orders to manage your risk exposure.

  • Trading Amazon share CFDs with VT Markets

    Dominate the e-commerce landscape with Amazon share CFDs on VT Markets.

    Whether you’re a seasoned trader or just starting out, our user-friendly platform empowers you to execute your trading strategies seamlessly. Choose from MetaTrader 4, MetaTrader 5, WebTrader Plus, or our mobile app for a smooth and familiar trading experience.

    Amplify your potential returns with leverage options of up to 20:1 on Amazon share CFDs. Our RAW ECN account offers competitive pricing with tight spreads, ensuring efficient execution of your trades.

    Stay one step ahead with VT Markets’ daily market analysis and economic calendar. These resources keep you informed about key events that could impact Amazon’s share price, allowing you to make informed trading decisions.

    Excited to leverage the potential of Amazon? Open a live account with VT Markets today and seize the opportunities within the dynamic share CFDs market!

How to get started

  • 1

    Open a live account

    Open a live account if you haven't already got one.
  • 2

    Fund your account

    Make a deposit into your trading account.
  • 3

    Claim your bonus!

    Your bonus will be credited to your account right after your deposit arrives.
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