DotBig: Amazon stock price prediction

DotBig: Amazon stock price prediction

Benefits & Drawbacks of buying Amazon papers

In spite of the economic recession and increasing concerns about logistics issues, Amazon remains one of the most competitive players in the retail industry. We might think of the following advantages of investing in the AMZN stock:

  • Amazon benefits from the advertising. Amazon is the website with one of the biggest traffic in the USA. It takes huge advantage of advertising, even though it brings only around 6% of total revenue.
  • The AMZN is undervalued. Today, this asset offers a very attractive entry-level for investors. Because of the big share of cloud computing revenues, we should compare it with other cloud giants. Compared with them, Amazon is traded at a discount.
  1. The company is exposed to higher wage inflation because of the significant number of employees and the upcoming economic recession.

What to expect from the future performance of the company

The AMZN stock is considered to be a good long-term investment mainly because of the growing number of entrepreneurs who are going to switch to cloud services. They make businesses more efficient by decreasing the time necessary for data processing and increasing storage capacity. According to the experts’ prediction, 85% of businesses will switch to cloud by 2025.

Conclusion

We consider the AMZN stock is a good long-term investment. Its cloud computing services, bringing the biggest share of total revenue, are quite competitive and popular among online retailers. The number of sales of Amazon sellers is growing. More and more people subscribe to Amazon services, contributing to its increasing earnings. That’s why, despite the annual decline in share price, we expect the stock to grow.

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DotBig Forex broker Reviews

DotBig Forex broker Reviews

The official online Forex account broker DotBig is a platform for online trading.