In September 2018, Amazon entered the Nine Zeros Club for the first time, but its capitalization later dropped to $ 955 billion. The reason is massive investments in improving the delivery of goods and products, as well as developing content for the Prime Video streaming platform.
According to FactSet analysts, in 2020, Amazon’s capitalization has every chance to once again exceed $ 1 billion. writes CNBC.
Reasons for growth and possible obstacles
Analysts expect the stock to rise to around $ 2,180 apiece. This will be possible thanks to the return that previous investments in the development of the technology business, streaming, advertising and offline trading will bring.
All this fuels positive expectations, but Amazon may have some difficulties. For example, analysts at UBS believe that a decrease in AWS sales may negatively affect the company’s earnings.
Investors should take regulatory risks into account: many US politicians believe that the company has monopolized the retail sector in the country and are discussing various ways to prevent it from strengthening its position even more. But all this did not stop Amazon shares from rising in price by 3000% over 20 years.
Who else is worth $ 1 trillion
Currently, the club of companies with a billion-dollar capitalization includes three American technology giants: Alphabet, Apple and Microsoft.
In total, the five most expensive US technology companies (Alphabet, Apple, Microsoft, Amazon and Facebook) now account for 17% of the S&P 500 index – in 2015 this value did not exceed 11%. The total capitalization of the five IT giants today exceeds $ 5.2 trillion.
You can buy shares of various American companies from Russia without opening a separate brokerage account with foreign brokers. Via St. Petersburg Exchange Foreign Securities Market investors can buy 500 liquid shares of leading companies in all sectors of the global economy, including all shares of the S&P 500 index.
To make transactions with such shares you need a brokerage account – you can open it online.
Useful links on the topic of investment and stock trading:
- Open a brokerage account online
- Test account with virtual money
- Software for trading on the exchange: trading terminal, mobile applications
- Structural Products
- Model Portfolios
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