Are you interested to invest in shares? What about Amazon?
Amazon is no longer just an online trading business today, it is a global conglomerate that has expanded into various fields of activity. In order not to depend on just one line of business, Amazon's strategy was diversification.
We have been finding Amazon stock on the stock exchange since 1997 when it was launched on the Nasdaq stock exchange. Since then Amazon has made history, being the second company in the world to surpass the market capitalization of $ 1 billion on September 4, 2018.
Amazon is the biggest name in e-commerce, is currently in a quasimonopoly position ans is almost impossible to counteract by its competitors.
But the company also has some weaknesses:
1. The financial situation - the indicators of operational profitability do not look extraordinary.
2. There is a risk of antitrust policies specifically dedicated to Amazon by US policy makers.
Amazon has a great advantage over its traditional competitors, because it does not invest in physical stores. Amazon's strategy is to focus 100% on sales and customer wishes. Managing products onnly through warehouses allow the company to have very competitive prices, with lower costs.
Category: Investing