Amazon (NASDAQ: AMZN) dominates e-commerce and cloud computing, with AWS providing the backbone for over 30% of the internet, driving the company’s profitability. Bezos is no longer at the helm, but Amazon has gone from strength to strength.
It has been growing and expanding into more areas like artificial intelligence (AI), streaming services, and logistics. If you’re thinking about buying Amazon shares, remember that past performance doesn’t dictate future results and although Amazon stock has been on a monumental tear for decades, regulatory scrutiny and rising costs could impact future margins.
February 26, 2025: If you've been frustrated that your Alexa can't handle the sort of requests that you now take for granted ChatGPT will effortlessly understand, then you might not have to wait much longer. Amazon finally announced generative-AI-powered enhancements to Alexa, slated for "the next few weeks", triggering stock gains on Wednesday. But since this is Amazon, Alexa+ – as it's dubbed – will come with a monthly fee (though if you're a Prime member already it'll be included).
February 21, 2025: Amazon has beaten Walmart in quarterly revenue for the first time ever after Walmart managed $180.5 billion, but Amazon clocked in $187.8 billion in the latest quarterly reporting.
Both exchange rates and share prices fluctuate in real time, so the costs estimated here should be considered as a guide only. They don't factor in spreads, which can be hard to pin down. Always refer to the platform itself for availability and pricing.
Quantity of shares
| Platform | Finder Score | Account fee | Min. initial deposit | Trade cost | Link |
|---|---|---|---|---|---|
|
9
Excellent
|
£0 | $100 | £1,493.33 |
Go to siteCapital at risk
|
 |
9.1
Excellent
|
£0 | £1 | £1,496.88 |
Go to siteCapital at risk
|
|
9.2
Excellent
|
£0 | £0 | £1,489.62 |
Go to siteCapital at risk
|
 |
8.5
Great
|
£0 (0.45% for funds) | £1 | £1,508.98 |
Go to siteCapital at risk
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Buying shares in just one company is generally considered a riskier bet than investing in a range of investments - AKA a "diversified portfolio". Experts generally recommend holding a mix of investments in specific assets and funds. Funds are ready-made portfolios of multiple companies' shares (potentially including Amazon), and the idea is that drops in the value of one constituent company's share price might be offset by rises in others.
Amazon is a major part of the NASDAQ, so it's included in many global funds and investment trusts, as well as tracker-style exchange traded funds (ETFs).
ETF |
Icon |
1-year performance (to Mar. '25) |
5-year performance (to Mar. '25) |
Link |
|---|---|---|---|---|
| Invesco S&P 500 ETF (SPXP) |  |
5.19% | 121.42% | Invest Capital at risk |
| Xtrackers S&P 500 Swap ETF 1C (XSPX) |  |
5.11% | 120.40% | Invest Capital at risk |
| iShares Core S&P 500 ETF USD (Acc) (CSP1) |  |
5.05% | 119.13% | Invest Capital at risk |
| HSBC S&P 500 ETF (HSPX) |  |
3.90% | 106.33% | Invest Capital at risk |
Rather um, big. In fact, this is how Amazon's market cap ($2 trillion) compares to the GDP of countries.
Review technicals and fundamentals to help you determine if now's a good time for you to invest.
View Amazon's price performance, share price volatility, historical data and technicals.
Historical closes compared with the last close of $192.72
| 1 week (2025-03-21) | -1.78% |
|---|---|
| 1 month (2025-02-28) | -7.67% |
| 3 months (2024-12-28) | -13.87% |
| 6 months (2024-09-28) | 3.43% |
| 1 year (2024-03-28) | 6.84% |
| 2 years (2023-03-28) | 88.94% |
| 3 years (2022-03-28) | 15.89% |
| 5 years (2020-03-28) |
The gauge below shows real-time ratings that are based on 26 popular indicators such as moving averages, for specific time periods. It's not a recommendation but is simply technical analysis that can form part of your research.
Finder might not agree with the analysis and we take no responsibility. We also give no representations or warranty on the accuracy or completeness of the information provided on this page.
George Sweeney
Like most tech stocks, Amazon didn't have a very successful year in 2022, falling by 49.62% versus the S&P500 performance of -19.44%.
In August, Amazon faced criticism when it announced that its Prime subscription service would rise from £79 to £95 per year or an additional £1 per month for monthly subscribers. In December, the share price was down 50% year-to-date due to a “bad online holiday shopping season”. Analysts cut their price targets due to revised revenue predictions for the company.
In early January the company cut more than 18,000 jobs worldwide in the largest layoffs programme in its history.
Amazon has several different streams of income, so it might be encountering a difficult period, but analysts expect that it’ll recover.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Valuing a stock is incredibly difficult, let alone a "Magnificent 7" stock, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value. Check out the Amazon P/E ratio, PEG ratio and EBITDA.
Amazon's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 35x. In other words, Amazon's shares trade at around 35x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the United States stock markets on average as of March 2025 (25.37). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
However, Amazon's P/E ratio is best considered in relation to those of others within the industry or those of similar companies.
Amazon's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.6928. A PEG ratio over 1 can be interpreted as meaning shares are overvalued at the current rate of growth, or may anticipate an acceleration in growth.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Amazon's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Amazon's PEG ratio in relation to those of similar companies.
Amazon's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping $120.5 billion (£93.1 billion).
The EBITDA is a measure of Amazon's overall financial performance and is widely used to measure a its profitability.
To put that into context you can compare it against similar companies.
In order to see how they compare, we put the last 8 years share price of Amazon compared to the SPDR US Technology sector UCITS ETF.
Amazon vs the rest of the world. That’s what it feels like most of the time. But how does Amazon compare to the whole tech sector? The brand has mostly outpaced its industry benchmark over the last 8 years. But that’s not the whole story.
Our graph, above, shows that Amazon stock has been more spiky than the SPDR Tech ETF. So you’d need a stomach for volatility to ride Amazon’s wave of strong performance.
2022 was a particularly bad year, as Amazon lost 51% of its value. This was less than Tesla (68%) and Meta (66%), but still a sizeable chunk. Amazon has been nearing the performance level of the SPDR tech ETF. Perhaps proving that the investing catchphrase “regression to the mean” might just be right.
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
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