Is Amazon a Good Investment?

PHOTO CREDIT: Amazon

OVERVIEW

Amazon.com Incorporation is a company based in the United States. The company operates an e-commerce platform around the world. The company also operates a cloud and data center business, where the company offers cloud-based services to large companies like Netflix and many others. The company also operates and sells Amazon Fire TV, Amazon Alexa, Amazon Fresh, Wholefoods and Amazon-branded grocery stores, and many others.

Why You Should?

  1. The COVID-19 pandemic has fueled strong growth for Amazon’s services. Amazon has seen strong growth of its e-commerce platform but has also seen strong growth across other segments, such as AWS and Fire TV. As people stay indoors and as companies around the world transition their operations online. This has benefited Amazon as they report record numbers yet again. This has benefited investors as well.
PHOTO CREDIT: Yahoo Finance

Why You Should Not?

  1. The only negative thing that I can find about Amazon is tough competition in the industry. Amazon competes with companies like Etsy, Costco, Walmart, InstaCart, IBM, and many other companies. This tough competition might hurt the company’s future growth. This might also hurt investors.

MY OPINION

In my opinion, I think that Amazon is a great long-term investment due to positive impacts from the COVID-19 pandemic, strong brand recognition, a wide range of products and services, its position is growing industries, strong future growth prospects, and rising revenues and profits. However tough competition might hurt the company in the future.