Amazon.com, world’s largest online retailer is an international American E-Commerce company. Initially just a bookstore, Amazon started selling varieties of goods online in different other categories. Jeff Bezos started the company in 1995. Amazon now has different retail websites for all major countries around the globe.
Jeff Bezos is the founder-cum-CEO of this E-Commerce giant. Initially, trading under the NASDAQ stock exchange AMZN symbol, Amazon stocks went public on May 15, 1997, with an Initial public offering (IPO) of US$18.00 per share.
Amazon is best known for its Retail goods, Digital content, Consumer Electronics, Games, Art, Instant Video, Computing services, Content production, Amazon Wireless, Amazon Fresh, Amazon Local, Amazon Prime Air, etc. Its extensive line of latest flagship products includes Amazon Kindle e-book reader and Amazon Fire tablet computer. Amazon is also a leading provider of cloud computing services to its users.
Amazon has weathered many storms since its IPO of US$18.00 per share on May 15, 1997. The reason this company rose subsequently because it had least expectations of making any profit for the first 4-5 years due to its initial business plan. In fact, Amazon witnessed its growth at a snail pace which drew huge criticisms from the investors all around.
But, following the dot-com bubble burst, Amazon survived when several other E-Commerce companies were shut down. Amazon went past its slower rate of growth and became a key player in online retailing making the concept of online shopping extremely popular and a household concept. It turned $5 million on revenues of over $1 billion.
Factors that have an impact on Amazon’s stock prices:
Amazon announced the unveiling of its Fire TV, a set-top box with interesting games and streaming videos. This has initiated a tough battle between the market giants to take control of your living rooms. According to the market pundits, this is going to be a key player in the streaming marketplace which is definitely going to have an impact on its stock performance.
Amazon’s initial slow growth made investors lose its faith in the company’s ability. But, after Amazon survived the dot-com bubble burst at the start of the 21st century, it started making modest profits which were enough to show investors that this company had it in it to stay for the long-term.
On May 12, 1997, Barnes & Nobles sued Amazon claiming that its “the world’s largest bookstore” statement was false. Barnes & Nobles went on further to say that Amazon wasn’t a bookstore at all rather it was a book broker. The lawsuit was settled out of court but this news didn’t go well with the investors.
Amazon has reported revenue of $25.6 billion, a growth of over 20% in its fourth fiscal quarter earnings report. But, despite the growth, investors have slammed the company’s stocks in the market as it didn’t meet the Wall Street expectations. The shares are now down by 7% because it missed Street expectations of $26 billion.
There is a number of things that affect the stock performance of a company. When such events happen, you have to keep updates to make your decision to trade or not.