Are you looking for the best binary options brokers where to trade Amazon stock? Find here a comparison table designed to make it easy for you to find the best binary options broker for trading Amazon. Find here Amazon's key facts, why to trade this stock, a comparison table of all the binary options brokers, options types, possible signals and factors who influence Amazon stock price.
Amazon Stock Binary Options Trading
Amazon.com, Inc. is the largest provider of online retail shopping services. Jeffery Bezos founded the company in 1994. Amazon caters to content creators, direct consumers, businesses and individual sellers.
Consumers use the Amazon retail websites to buy goods directly from Amazon and from other third party retailers. The company’s business model is based on providing a wide selection of products that can be easily accessed at affordable prices. The main markets for Amazon are North America and International markets in developed and emerging economies.
Amazon Inc. trades on the NASDAQ under the ticker symbol AMZN.
Amazon Stock Binary Options Brokers Comparison
Why trade Amazon Stock
Generally, sell-side analysts place an overweight average rating on Amazon stock. However, Amazon may not be the best stock for investors who are looking to trade stock from a company that guarantees big and fast earnings. This is because Amazon makes very thin profit margins and has often registered negative net income.
Even then, Amazon is a growth company compared to other technology giants such as Google and Apple. In the first quarter of 2015, the company recorded a 22% increase in constant currency sales compared to 18% in the final quarter of 2014.
Actual sales have also been growing by 49% year on year with its Q1 2015 report showing total net sales amounting to $21.16 billion.
Amazon Web Service (AWS) profits were for the first time reported in the company’s Q1 215 report. AWS profits amounted to $265 million an increase from $245 million a year ago.
AWS is Amazon’s big earner and according to Bezos, the business is worth $5billion and continues to grow fast.
Overall, Amazon stock is a good trade for investors who are looking for a company that has a long-term growth vision.
Type of available binary options for Amazon Stock
The common contract types for trading Amazon stocks are:
- Basic Call/Put options: Predict if the price of Amazon stock will move up or down before the expiry time.
- Touch options: Predict whether the price of Amazon stock will touch the given strike price before the expiration time.
- In/Out: Predict whether the price of Amazon stock will stay within a range of two strike prices.
Possible Signals for Amazon Stock
- Amazon released its Q1 2015 earnings report causing stock prices to rise by 5%.
- A section of analysts announced that they are ‘very bullish’ about Amazon stock. They project that AWS will have a very strong year on year momentum. This could see Amazon’s share of information technology services worldwide grow from 0.8% to 4.4% by 2023.
- Analyst projections also expect Amazon’s share of global ecommerce to increase by 29% by 2023.
- Wal-Mart, the world’s largest retailer is posing as a major competitor for Amazon as the retailer plans to provide its customers with unlimited shipping at a cost of $50 per year, compared to the $99 a year that Amazon charges for its Amazon Prime Service.
Factors Influencing the Price of Amazon Stock
- Currency fluctuations- This has not only affected Amazon, but it has had an overall negative impact on the technology sector
- Unpredictable international markets where Amazon has made major investments
- Stiff competition from traditional retailers
- Trends in e-commerce technology