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How To Buy Amazon Stock With $100 – How To Invest in Amazon

Last Updated: January 2, 2021 10 Comments – 3 min. read

Interested in getting a piece of the fast-growing e-commerce retail giant? Below are the steps for how to invest in Amazon stock with as little as $100.

Disclosure:  Some of the links on this page are referral links. At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. This allows me to continue producing high-quality, ad-free content on this site and pays for the occasional cup of coffee. I have first-hand experience with every product or service I recommend, and I recommend them because I genuinely believe they are useful, not because of the commission I get if you decide to purchase through my links. Read more here.

Contents

  • Introduction – Why Invest in Amazon?
  • How To Buy Amazon Stock
  • How To Invest in Amazon Stock – Quick Steps

Introduction – Why Invest in Amazon?

If you’ve landed on this page wanting to invest in Amazon, chances are you already know the e-commerce retail giant has been a fantastic investment historically, far outperforming the market (see below) and most other stocks.

Amazon has proven its proficiency in disruption and automation since its birth in 1994. The company quickly went public only 3 years later in 1997. With its continual advancement into nearly every corner of society, including its recent acquisition of Whole Foods, its future growth potential looks promising.

While the global pandemic has delivered a major blow to most businesses, Amazon’s earnings – and subsequently, its stock price – have soared throughout it, with more people understandably buying online instead of going to a brick-and-mortar store, emphasizing Amazon’s resilience to otherwise catastrophic forces. Specifically, in the 2nd quarter of 2020, Amazon’s sales were up a massive 42% year over year.

This accelerated shift toward e-commerce will continue to benefit Amazon in a post-pandemic world. Of course this has been their bread and butter all along; it just may be happening sooner than anyone expected, due to the “new normal” which will continue to have more people ordering products online for delivery while sitting on their couch.

Amazon has also made an effort in recent years to diversify its revenue streams. An oft-forgotten, lesser known chunk of its business is from its enterprise cloud solution called Amazon Web Services (AWS), used by companies around the world to keep their websites and digital infrastructure running smoothly. AWS is actually an industry leader in this space.

Amazon has also beefed up its advertising offering. Third-party retailers can now pay for ad space on Amazon; these are the “Sponsored” ads seen in Amazon search results and on product pages. Retailers don’t have to sell on Amazon to be able to buy ad traffic. Thus, with both its cloud platform and its advertising service, Amazon makes money even when users are shopping on other websites.

Amazon even recently announced they would begin delivering prescription drugs, potentially immediately stealing market share from the likes of CVS, Walgreens, etc., at a time when the healthcare industry is ripe for disruption. Consumers eager for lower prices and more efficiency may find the perfect solution in Amazon Pharmacy.

Other ventures include food delivery through the aforementioned Whole Foods acquisition, video content through Prime Video, transportation technology, and more.

As you can see, Amazon has far outpaced the broader market since it went public in 1997:

amazon performance backtest vs s&p 500
Source: PortfolioVisualizer.com

How To Buy Amazon Stock

Ready to buy Amazon stock? First you’ll need an online brokerage account if you don’t already have one. For U.S. investors, I’d suggest M1 Finance. M1 Finance is actually currently offering a 1-year free trial of their premium “M1 Plus” account for users who sign up before February 15, 2021, a $30 bonus for users who fund their account with $1,000 or more during the month of January 2021. The modern broker offers zero fees, zero commissions, dynamic rebalancing, a modern interface and mobile app, and fractional shares. I wrote a comprehensive review of M1 Finance here. Investors outside the U.S. can use eToro.

At the time of writing, a single share of Amazon costs north of $3,000. Thankfully, we can use what are called fractional shares to invest in Amazon with much less than that. Fractional shares allow you to use M1’s account minimum deposit ($100) to buy roughly 1/33 of a share of Amazon stock. After the initial $100 deposit when opening a new account, you can buy new shares of stock in the future whenever your cash balance reaches at least $25.

Opening an account with a brokerage will only take about 10 minutes. From that point you can connect your bank account to deposit money into your investment account. Then just type in what’s called the ticker symbol – the unique identifying abbreviation for the stock – for Amazon (AMZN) and place the order. It’s that simple! You can obviously buy Amazon alongside other stocks in your portfolio, or invest entirely in Amazon.

How To Invest in Amazon Stock – Quick Steps

To recap:

  1. Sign up for a new account with an online brokerage like M1 Finance. (Investors outside the U.S. can use eToro.)
  2. Connect your bank and fund your account.
  3. Enter the ticker symbol – AMZN – or the company name to locate the stock.
  4. Place the buy order. You’re done! You can now call yourself an Amazon shareholder.

Disclaimer:  While I love diving into investing-related data and playing around with backtests, I am in no way a certified expert. I have no formal financial education. I am not a financial advisor, portfolio manager, or accountant. This is not financial advice, investing advice, or tax advice. The information on this website is for informational and recreational purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. Do your own due diligence. Past performance does not guarantee future returns. Read my lengthier disclaimer here.

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Related Posts

  • How To Buy Apple Stock With $100 – How To Invest in Apple
  • How To Buy Tesla Stock With $100 – How To Invest in Tesla
  • How To Buy Pfizer Stock With $100 – How To Invest in Pfizer
  • How To Buy Zoom Stock With $100 – How To Invest in Zoom
  • How To Buy Disney Stock With $100 – How To Invest in Disney

About John Williamson

Analytical and entrepreneurial-minded data nerd, usability enthusiast, Boglehead, and Oxford comma advocate. I lead the Paid Search marketing efforts at Gild Group. I'm not a big fan of social media, but you can find me on LinkedIn and Reddit.

Reader Interactions

Comments

  1. Moustapha says

    January 22, 2021 at 4:02 pm

    I live somewhere in Europe.
    I hear about Amazon shares and I want to know further.
    The steps to take ?
    How does it work?
    A single amazon share cost?
    Can someone deal direct with Amazon on a specific trade platform?

    Reply
    • John Williamson says

      January 22, 2021 at 11:53 pm

      Hi, I laid out the steps in the post above. A single share is about $3,300 USD right now. No, you cannot deal directly with Amazon on a trading platform.

      Reply
  2. Anna says

    January 21, 2021 at 9:03 am

    Hi I want to buy stock in amazon but I don’t know what to do first

    Reply
    • John Williamson says

      January 22, 2021 at 11:20 am

      Hi Anna. I laid out the steps in the post. First you’ll need to sign up for an account with a broker.

      Reply
  3. Kadijah says

    January 17, 2021 at 3:44 am

    Hi I’m thinking of investing in fractional shares with Amazon, I’m in the US-California. Can I use E-Trade or you still suggest in M1. Also if I open the account with $100, then select Amazon. Do I have to put money in that account every month or purchase a share every month, I’m a little confused, can you clarify the process. Do I just put Money in the account one time. I don’t understand

    Reply
    • John Williamson says

      January 20, 2021 at 3:49 pm

      Hi, you can definitely use E-Trade but I’m not sure what their minimum account requirement is, if they have one. But Etrade does not offer fractional shares, so you’d have to pay the full price for a single share of Amazon – about $3,300 right now.

      After opening a brokerage account, you’re not required to continue depositing regularly, but it’s definitely encouraged, as that’s how you build up your wealth and get your investments growing faster.

      Reply
  4. Yuberth says

    January 3, 2021 at 11:41 am

    Is it ok to have a broker like investous? Or M1 is available here in middle east?

    Reply
    • John Williamson says

      January 3, 2021 at 6:33 pm

      I’m not familiar with Investous but some cursory Googling tells me that might only be CFDs. M1 is unfortunately currently not available in the Middle East, but eToro should be.

      Reply
  5. Yun says

    November 9, 2020 at 9:11 am

    Is this available from Singapore?

    Reply
    • John Williamson says

      November 23, 2020 at 10:20 pm

      Hi Yun,

      Do you mean Amazon or M1 or both? I know M1 is not available in Singapore. You may be able to use eToro or Interactive Brokers as a broker. Admittedly not sure about the logistics of buying a US-listed company in Singapore. Best of luck.

      Reply

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