In this article we’ll cover the following topics and more:

• Amazon’s History
• How to buy Amazon stock for beginners
• How much would I have if I invested $1000 in Amazon in the 90s?
• What are some of the different ways to invest in Amazon?

The Seattle based company is considered one of the Big Four in the tech space, along with Alphabet (Nasdaq: GOOG), Apple (Nasdaq: AAPL) and Meta (Nasdaq: FB). In addition to e-commerce, Amazon (Nasdaq: AMZN) has large footprints in the digital streaming, artificial intelligence and cloud computing space. Amazon is also investing in self-driving car technology, which is no surprise considering its established history of innovation.

Amazon’s History

If we go all the way back to 1997, the year Amazon filed to go public, the company was not even on most investors’ radars. Back then they were the self-titled “leading online retailer of books.” They still sell books today, but as we talked about earlier, they do a whole lot more.

However, as early on as 1996 Amazon’s impressive growth started. The company went from $511,000 to $15.75 million in that year alone.

Today you’ll frequently hear investors lamenting “if I had only invested in Amazon in the 90s I would be set for life.” This is undeniably true as the stock has grown from its IPO price of $18 per share to the current price of $117, after a recent stock split.

How much would I have if I invested $1000 in Amazon in the 90s?

To put it into perspective, a small $1,000 investment in the mid 90s would be worth more than $6,000 today. Not a bad ROI.

Not a bad life either for 56 year old Founder Jeff Bezos, who went from working out of his garage to becoming the richest person in the world. Bezos’ net worth is currently a whopping $150 billion and counting.

So the question is, will the growth continue? How high can Amazon’s stock go? Well if the past decade is any indicator, the answer is A LOT higher. Even in just the past five years the stock has increased almost 80%. And even with a recent dip there is still plenty of room for growth.

So let’s talk about how to invest in Amazon.

How to Invest in Amazon in 2022: Here Are Your Options

Single Stock

The easiest and most traditional way to acquire shares of Amazon is through a brokerage account. You can do this through a traditional 401k, IRA or a Taxable Brokerage Account.

If you aren’t currently using a broker, Vanguard, Fidelity, Charles Schwab, Robinhood and Webull are a few options with low or no cost fee structures.  And after recent stock splits and market volatility, Amazon is hovering around $130 per share. Which is pretty cheap considering this tech giant’s share price history.

Mutual Funds

Another way to gain access to shares of Amazon is through mutual funds. This popular strategy allows for easy diversification as each fund that owns Amazon, also owns many other stocks which can lower your overall risk.

These five mutual funds all have Amazon as one of their top holdings. And may be a good option for those looking to indirectly buy shares of Amazon.

• The Vanguard Total Stock Market Index Fund (VTI)
  
• The Vanguard 500 Index INV (VOO)
  
• The SPDR S&P 500 ETF (SPY)
• Fidelity 500 Index Fund (FXAIX)
• Invesco QQQ Trust (QQQ)

How to Invest in Amazon: Fractional Shares

Even at their relatively low current price, for many newer investor shares of Amazon may be out of reach. However, there is no need to fear because you can buy fractional shares.

It’s true… you can invest in Amazon stock for as small fraction of a single share’s price. Brokerages that offer fractional shares include Fidelity, Robinhood and Charles Schwab, just to name a few.

Direct Stock Purchase Plan (DSPP)

If you don’t want to use a broker, you do have another option. A direct stock purchase plan (DSPP). As of August 2019, you can now buy and sell Amazon stock on platforms like Computershare.

Direct stock purchase plans are suitable for those looking to make long-term self-directed investments. Please be aware of the transaction fees if you are considering this option.

Consult a Financial Advisor

As you grow your net worth, working with a financial advisor may be a good option for you. It’s no secret that we are and have been extremely critical of financial advisors. That’s because there are a lot of bad ones out there. It’s important to do your due diligence before picking a financial advisor to manage your investments and hard-earned money.

However, if you do end up going with a financial advisor, they will be able to help you determine whether an investment in Amazon is right for you and your financial goals. In fact, they may recommend investing in some of mutual funds that we mentioned earlier.

Final Thoughts of How to Invest in Amazon

Regardless of how you invest in Amazon, it’s important to consider why you are investing in the company. If there is one thing that you can learn from Amazon’s journey, it’s that investing for the long haul pays off. Amazon’s history of steady and consistent growth over time is an obvious parallel to a long-term investing strategy. And even though Amazon has already reached historic highs, there is still plenty of potential for years to come.

The post How to Invest in Amazon appeared first on Investment U.

Shoppers splurged online to the tune of $7 billion on Black Friday alone, and we still have to get through the rest of the holiday shopping season. But which retail-oriented tech stocks should the savvy investor be keeping an eye on as we march toward 2020?

The first stock to watch is a retail brand that has become something quite a bit more in the eyes of its customers. The second is an e-commerce platform with surprising growth, powering the online shopping experience of millions of users. The third is, well, likely no surprise to you at all, but still worth watching like a hawk.

1.  Peloton Interactive (Nasdaq: PTON)
   

   Is Peloton an exercise bike or a lifestyle? The New York Times called Peloton a genuine phenomenon. To me, it looks like an exercise bike. But with my beer gut, dislike of movement and penchant for sitting at my computer eating snacks above exercise, I am clearly not the target market.
   .
   The company has over 500,000 subscribers right now, and that number is expected to keep climbing as Peloton continues to pursue growth above all else. And with the holiday season upon us, what many people will likely want for Christmas isn’t you but rather a shiny new Peloton exercise bike.
   .
   Peloton’s tech innovations combine hardware, connected technology and content to create an exercise experience that has converted true believers in the Peloton lifestyle. I’m not saying it’s a cult (I’m not not saying that) but where you have true believers or brand evangelists, you have a sustainable product and a hot stock to watch.
   .
   Peloton has climbed about 45% over the last month and is currently trading around $36. And now that we’re done being thankful and are back into “give me more stuff” mode, expect that it may climb even higher for the holidays. It won’t kill everyone to work off that extra pie and eggnog as well.
   .

2.  Shopify (NYSE: SHOP)
   

   Looking for another tech stock that plays on retail for the holiday season? Why not look into Shopify, a company that doesn’t just sell stuff but helps other companies sell their stuff as well. And with e-commerce bigger than ever this holiday season, it may be time to leverage one of the biggest e-commerce-enabling platforms out there.

   The company, which had a big year in 2019, is continuing to grow and expand and could become a truly viable competitor for some of Amazon’s businesses. Some have claimed that Shopify’s success has “come out of nowhere,” but those of us familiar with the platform could easily have seen its success coming.

   And while not everyone is optimistic, Shopify stock could gain even more ground. Shopify’s eye-popping success should certainly make you sit up and take notice as we roll into the days of the holly and the ivy. 

   Since going public in 2015, Shopify has seen annual revenue growth of 70%. And while it’s only grown about 4% over the last 30 days, the stock is on a general uptrend that could keep climbing higher through retail boom season.

3.  Amazon (Nasdaq: AMZN)

   I didn’t buy anything from Amazon for Black Friday. And I didn’t for Cyber Monday. Here’s the thing, though. Many people did. A whole lot of people.

   Yes, I understand that Walmart is giving Amazon a run for its money in the retail space these days. But come on. This is Amazon and we are in prime Amazon season (see what I did there?).

   It’s true, Amazon has struggled somewhat since July and you could say its stock has been stagnating. That’s probably not going to continue forever.
   
   When it comes to Amazon, you can’t really use the “parking lot indicator” to see how many people are shopping there. But come on – you know all your friends are on Amazon’s website buying up a storm. Just ask them!

   I’m not saying it’s a definite winner – not by any stretch. What I am saying is that despite being down about 1.5% over the last month, Amazon is a behemoth that isn’t going anywhere other than to the bank to deposit all the money from everyone you know.

   So if that doesn’t make Amazon a tech stock to watch this month, I don’t know what does.

   Good investing,
   
   Brian M. Reiser
   Investment U Contributing Writer

   We’re always keeping our eyes on the best tech stocks to watch in the market. If you want to stay updated too, subscribe to our free eletter and get the updates delivered right into your inbox each day. Signup in the box below.

The post Best Tech Stocks to Watch Right Now appeared first on Investment U.

What is AI?

Artificial intelligence is a technology that enables machines to complete tasks that generally require the type of natural intelligence possessed by humans. As a result, AI tech allows computers to analyze highly complex data. Gain insight from such data. And then use it to make predictions and optimize systems for performance.

AI isn’t just one technology. But instead, it’s a group of technologies that enable machines to mimic human thinking. Some of these technologies include Machine Learning (MI), Natural Language Processing (NLP), Predictive Analysis, Image Recognition, and Robotics.

The artificial intelligence market was valued at $23.94 billion in 2018. It is expected to grow to $208.49 billion by 2025. That’s a compound annual growth rate (CAGR) of 36.2%. 

The technology is already promising to transform everything from automobiles to healthcare to online advertising. This creates a list of companies to watch that are leveraging AI for their own businesses. Here’s a list of some of our favorite AI stocks:

The Top AI Stocks to Watch for the Coming Year

1. Alphabet Inc. (Nasdaq: GOOG)

Sundar Pinchai, the CEO of Google, called the search engine gargantuan an “AI first” company repeatedly. And he isn’t kidding. Which is why Google is one of the very best AI stocks of all.

This tech giant made the most acquisitions in artificial intelligence technology of any of its competitors since 2012. They acquired twenty investments overall. Including a purchase of predictive analytics platform Kaggle. They also acquired the British DeepMind project.

Google uses the technology with Gmail, Maps, its cloud system, Photos and more. They are also poised to become a top player in autonomous vehicles, which rely heavily on AI.
. 

Shares of Google have been climbing steadily and are currently trading around $2,370. They boast a robust PE ratio of about 21 and an EPS around $111.

2. Nvidia Corporation (Nasdaq: NVDA)

Nvidia, based in Santa Clara, CA, is a gaming technology company that has long been a leader in the AI space. But this AI stock to watch is now far from just a gaming company.

It’s graphics processing unit (GPU) chip technology powers much of the gaming industry but also cloud computing, big data and more. These GPU chips can process massive amounts of data.

In its own words, NVIDIA has evolved the GPU into, “a computer brain at the exciting intersection of virtual reality, high performance computing, and artificial intelligence.”

Like Google, NVIDIA stock has performed well recently but trades around a much more affordable $167 per share. However, this AI stock’s PE ratio is about 46 based on its earnings per share of $3.73.. .

3. Microsoft Corporation (Nasdaq: MSFT)

Bill Gates’s technology empire currently has around 8,000 employees working on AI products. And one of the products it’s working on is direct competition for both Google and NVIDIA: a new AI chip for the cloud.

These chips can make intelligent predictions based on complex data patterns and unlock key insights. Microsoft has used this technology to develop products across a variety of sectors and industries.

These include human language technologies, assistive robotics, medical imaging readers and the consumer-facing platform Cortana. Also, Microsoft CEO Satya Nadella seeks to democratize the AI landscape across even more industries such as education and manufacturing.

Such technology is special because it can do virtually anything that human intelligence can do. And is not limited to specialized niches of thought. Plus, the moneymaking power of such a project – if it is successful – is virtually infinite. Therefore, this makes this another one of the top AI stocks out there.

4. Amazon.com, Inc. (Nasdaq: AMZN)

If you’ve ever shopped at Amazon.com – and let’s be honest everyone has – you’ve seen their artificial intelligence program in action.

All those personalized product recommendations that have you reaching back into your wallet are created with intelligent technology. Everyone’s good friend Alexa also leverages AI.

But, Amazon’s use of the technology is not limited to their storied e-commerce platform. Amazon is also using partnerships with major players like JP Morgan and Berkshire Hathaway to deliver the technology to even more spaces like healthcare.

Amazon Web Services (AWS) is also a major profit engine for the tech giant making making significant use of computer brains. Powering the cloud computing services of AWS, Amazon’s technology offers everything from speech translation to facial recognition capabilities.

Other AI Stocks to Watch

Intel (Nasdaq: INTC)

Helping self-driving cars prevent collisions is one way this blue-chip semiconductor legend is playing the AI game. But it’s not the only way. In addition to its Mobileye division, Intel manufactures visual processing units that allow smart cameras to perform tasks such as facial recognition and counting crowds.

Also, Microsoft is leveraging Intel’s technology. And Intel’s field-programmable gate arrays run deep learning on Microsoft’s cloud. So, keep this in mind if you invest in both Intel and Microsoft at the same time as it opens you to more company exposure than you might have anticipated.

Twilio (NYSE: TWLO)

This AI stock to watch is a cloud software company whose Application Programming Interfaces (APIs) enable software developers to build various features into apps including messaging, voice, and video capabilities. Plus, this omnichannel customer engagement platform can be a fit for any size organization. So its field of potential business and enterprise customers is vast.
.

Tencent Holdings (OTC: TCEHY)

This Chinese firm is the country’s largest social media player. For example, it invented the omnipresent WeChat app. And recently invested in building a major AI lab in Seattle, Washington. The aim of the lab is to expand upon the company’s virtual assistant and voice-to-text product offerings.

Other capabilities offered by the company’s stake in AI include smart news aggregators, facial recognition tech and natural language processing devices. Tencent Holding is also investing intelligently in AI people. Stealing talent away from top rivals like Microsoft and Baidu.

Facebook, Inc. (Nasdaq: FB)

Mark Zuckerberg’s social media empire – love it or hate it – is deeply committed to developing machine learning technologies.
.
And using AI to detect and filter out hate speech and fake news is one of many abilities Facebook is pursuing to continuously improve its ever-popular platform. This means Facebook remains a key AI stock to watch moving forward.
.

Baidu, Inc. (Nasdaq: BIDU)

Baidu is, quite simply, the Google of China. And the search engine giant has made a heavy investment in artificial intelligence to help improve both their search engine results and the ads they serve up. But it’s also a major player in the self driving automobile market.

Match Group, Inc. (Nasdaq: MTCH)

In case you are still seeking an AI stock to swipe right on, Match Group is using artificial intelligence on its popular “casual” dating app Tinder.
.
Its “Super Likable” feature is powered by machine learning technology. So, if you want an alternative way to play AI stocks; make a hot date with your stockbroker and pick up some shares of Match.

Concluding Thoughts on These AI Stocks to Watch

These AI stocks are important to watch as we continue to move through 2022. This revolutionary technology is not going anywhere, so it might be time to consider investing. As always, do your own research and assess your risk tolerance before making investment decisions.

The post Top AI Stocks to Watch in 2024 appeared first on Investment U.