Tuesday, 16 June 2015

Is Amazon A Good Investment Option For 2015?


Is Amazon A Good Investment Option For 2015?
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Amazon in 2014
As the countdown has been started and we are just about to enter in the year 2015, by reviewing some of the popular stocks of 2014 we can easily make predictions that how they will perform in 2015. Amazon is the place where you can get just about anything that you want for much cheaper price than you get it from elsewhere. I think there would be hardly a few persons who don't shop from Amazon otherwise out of 10 there would be 7 persons who visit this online shopping site to get what they want. Now moving towards its accomplishment, the last 5 years for Amazon have been great but this year was callous for Amazon. Number of investors grew concerned over consecutive losses and big spending ambition from Amazon. The value of stocks started to slide immediately as the year started at $397.97 per share. And the price had fallen to $346.15 by 3rd February. The whole year was with tremendous losses but slight gains in series also. Even today the prices of stock are still downward, hanging around $312 per share.
Expectations from Amazon in 2015
In the coming year what you might be expecting is something that makes you profit. Analysts have analyzed Amazon and out of 30 analysts, 16 rate it as strong buy, 12 rate it as a hold and remaining 2 rate it as a moderate buy. The best rating that you may give Amazon would be a moderate buy. There are few reasons behind saying so and they are:-
The Small Margin Model - The main business of Amazon revolves around the small margin model. The idea behind it is huge sales with small margins, but it would be incredibly hard to happen. Yet the code has not been cracker but it was proved that their idea would be a double edge sword. It is sure that it will drive sales but there will not be revenue needed to turn a profit.
Spending - The dangerous trend that can harm Amazon is the addiction of this company to spend beyond their means with tunnel vision on expansion.
Competition - Due to rise in technology Amazon is facing more and more competition. But it is big enough to face the competition and the sales will also not get lower in the future.
Would Amazon be a good investment option in 2015?
According to the analysts it was heard that Amazon is a good place to invest for 2015 but few people disagree to it. It is said so because there are too many flaws in the model of Amazon to turn a profit. Before investing anything into the company you must see that whether the spending is slowing down and margins are increasing slightly. If you think that it is not possible then you are wrong because it can be possible if done properly. So, what you have to do is to think before you invest in anything and must have proper knowledge about everything that your business is concern to.

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