## Why Invest in Amazon Stock in 2020?
Amazon is an American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the most valuable companies in the world, with a market capitalization of over $1 trillion. Amazon has a wide moat in the e-commerce market, and it is well-positioned to continue to grow in the years to come.
There are several reasons why you should consider investing in Amazon stock in 2020.
### Reasons to Invest in Amazon
**Strong financial performance:** Amazon has a history of strong financial performance. In 2019, the company reported revenue of $280.5 billion, up 20% from the previous year. Amazon also reported net income of $11.6 billion, up 22% from 2018.
**Leading position in e-commerce:** Amazon is the largest e-commerce retailer in the world. It has a dominant position in the United States, and it is also growing rapidly in international markets. Amazon’s e-commerce business is a cash cow, and it generates the majority of the company’s revenue.
**Growth in AWS:** Amazon Web Services (AWS) is the company’s cloud computing business. AWS is one of the largest and most popular cloud computing platforms in the world. It is used by businesses of all sizes, and it is a major source of revenue for Amazon. AWS is growing rapidly, and it is expected to continue to be a major growth driver for Amazon in the years to come.
**Expansion into new markets:** Amazon is constantly expanding into new markets. In recent years, the company has launched its e-commerce business in new countries such as India and Mexico. Amazon is also expanding into new areas such as healthcare and grocery delivery.
**Strong management team:** Amazon is led by a strong management team. CEO Jeff Bezos is a visionary leader who has guided the company to become one of the most successful in the world. The management team has a proven track record of success, and it is well-positioned to lead Amazon to continued growth in the years to come.
### Risks to Consider
There are also some risks to consider before investing in Amazon stock.
**Competition:** Amazon faces competition from other e-commerce retailers such as Walmart and Alibaba. Amazon also faces competition from brick-and-mortar retailers.
**Regulation:** Amazon is subject to regulation from government agencies. Regulation could impact Amazon’s business in the future.
**Economic conditions:** Amazon is affected by economic conditions. A recession could impact Amazon’s revenue and profitability.
### Conclusion
Amazon is a well-established company with a history of strong financial performance. The company has a wide moat in the e-commerce market, and it is well-positioned to continue to grow in the years to come. There are some risks to consider before investing in Amazon stock, but the potential rewards outweigh the risks.
## How to Invest in Amazon
There are several ways to invest in Amazon stock. You can buy shares of Amazon stock through a stockbroker. You can also buy shares of Amazon stock through a mutual fund or ETF that invests in Amazon stock.
If you are not sure how to invest in Amazon stock, you can talk to a financial advisor. A financial advisor can help you create a portfolio that meets your individual investment goals.
## FAQs
**Is Amazon stock a good investment?**
Amazon stock is a good investment for investors who are looking for long-term growth. Amazon is a well-established company with a strong track record of financial performance. The company has a wide moat in the e-commerce market, and it is well-positioned to continue to grow in the years to come.
**What is the Amazon stock price?**
The Amazon stock price is currently around $3,000 per share. The stock price has been steadily rising in recent years, and it is expected to continue to rise in the years to come.
**How can I buy Amazon stock?**
You can buy Amazon stock through a stockbroker. You can also buy shares of Amazon stock through a mutual fund or ETF that invests in Amazon stock.
**What are the risks of investing in Amazon stock?**
The risks of investing in Amazon stock include competition, regulation, and economic conditions. Amazon faces competition from other e-commerce retailers such as Walmart and Alibaba. Amazon is also subject to regulation from government agencies. A recession could impact Amazon’s revenue and profitability.
**Should I invest in Amazon stock?**
Whether or not you should invest in Amazon stock depends on your individual investment goals and risk tolerance. If you are looking for long-term growth, Amazon stock is a good investment. However, if you are not comfortable with the risks of investing in Amazon stock, you may want to consider other investment options.