5 Great Reasons To Buy Amazon's Stock Today

Why Amazon’s stock (AMZN) is worth spending money and investigating? It might be very profitable. Let’s find out the answer!

The chart shows a rapid growth of Amazon’s stock in 2017
Amazon has just surpassed $ 1,000 mark in history, marking a major turning point for the company owned by Jeff Bezos. Amazon's dominance in the areas of e-commerce and cloud computing are factors that attract investors' attention. Here are five reasons why you should buy Amazon stock today.

Rapid growth 

E-commerce sales of retail sales
Not long ago, the Amazon’s stock which is posted up on Nasdaq touched $ 1,001.20 an ounce, up about 40 percent from a year ago, more than double the 15 percent gain of the S & P 500 in the period. Moreover, most investors anticipate Amazon's stock could go further if it can successfully spread the US market on worldwide.

The researching firm eMarketer estimated that the global retail turnover would rise over $4000 billion in 2020. It means that the sales increased $2000 billion, compared to 2016. At least more than a decade, e-commerce seems to develop rapidly, thanks to a thousand people who access the internet every year. This number may rise much more than present. As a result, Amazon can profit from this trend much more than other companies.

Going shopping means Amazon 

In many consumers’ minds, Amazon seems to be a synonym of the word “shopping.

54% of customers started to search on the Titan’s retail online web when shopping online in August 2015. According to the BloomReach marketing company, it’s a number which increased 44% compared to last year. At the same time, the percent of consumers who have their searches originated from other retail websites fell from 20% to 13%.

Amazon also shares their search engines. The numbers of shoppers who began to search their products on searching pages went down from 25% to 30%. In fact, these developments have got attention from Alphabet – a subsidiary of Google. Alphabet reckoned that Amazon is their #1 rival in the market.

As the largest online retailer in the world, Amazon is dominating the e-commerce market. Just spending $ 99 a year to own an Amazon Prime account, consumers can comfortably shop online for every item with ongoing Amazon deals, along with music, video, and hosting services. Moreover, photos help shoppers interact with the website very well.

This strong tendency is probably a proof of Amazon’s increasingly consuming ideas. Moreover, the investors should expect to see the rising numbers in the very next year. It may be the time when Amazon’s competitors continue to struggle.

Robust web services

Amazon is a reference to e-commerce. However, the company has a much more lucrative and growing niche: Amazon web services.

Amazon web services are a cloud computing service that maintains everything. In fact, its massive data center system encompasses the globe. Amazon’s hosting and other technological services are serving clients from a variety of industries, from Netflix or Airbnb to financial companies, or even the federal government. According to Gartner, in 2017, the businesses in all over the world are expected to pay $246.8 billion to Amazon, up to 18% of 2016.

Penetrating into China

One of the primary failures of Amazon is its inability of penetrating into Asian markets. Thus, Amazon has been controlled by the big competitors like eBay and Alibaba firm in China.

Nevertheless, everything can change once Amazon decides to expand the lending service in China.
In fact, Amazon Lending service provides the vendors with loans to help them take stock of the goods. This will allow Amazon to expand the partnerships with Chinese suppliers.

A dominance of no compromise

Besides its high ranks of local searching, the dominance of Amazon is seen in its complete elimination of traditional retailers.

The rise of the Amazon coincides with the decline of some prominent US retail chains such as Macy's and Sears. The two companies shut down a chain of stores and fired a large number of employees due to sluggish sales. Meanwhile, there are a lot of shopping centers fell into a gloomy situation. They even have to rely on concerts and festivals to attract customers.

In the list of retailers who are struggling, we can also include Kohl, Abercombie & Fitch and Office Depot. These firms all have a chain of closed stores in response to the sharp attack of e-commerce revolution led by Amazon. When things happen for various reasons, we can see an overall picture that the retailers of all types are gradually losing the shares with Amazon. In the end, some may find it hard to survive.

Bottom lines

When the rivals become weak and fade away, Amazon will get their best spoils. While their competitors are crumbling by the sidewalk, the online retailer positions to grab a full area of the global e-commerce market. As a result, their stock will continue to bring the good profit to the shareholders in the future. I believe this is a very favorable time for you to buy Amazon’s stock right now.