Steps to Invest in Amazon

1. Research and Analysis:
   Amazon is one of the largest tech companies in the world, with a diversified business model that spans e-commerce, cloud computing (AWS), digital advertising, smart devices, and streaming services. Its growth has been driven by the expansion of e-commerce and its dominance in cloud infrastructure through Amazon Web Services (AWS). Before investing, analyze their financial reports, the growth of their key segments, and regulatory challenges in key markets like the US and the EU.

2. Opening an Investment Account:
   Amazon is listed on the Nasdaq under the ticker AMZN. To invest in its shares, you need to open an account with a brokerage firm that has access to US markets. Given its high per-share value, many brokers offer the option to buy fractional shares, allowing you to invest with less capital. Compare the fees, trading platforms, and services offered by each brokerage firm to choose the one that best suits your needs.

3. Define Investment Strategy:
   Amazon is a high-growth, moderately volatile stock, making it ideal for long-term buy & hold strategies, especially for investors seeking exposure to technology, e-commerce, and cloud computing. It can also be used for short-term trading by leveraging the seasonality of its revenues (such as Black Friday and Prime Day sales).

4. Execution and Monitoring:
   Amazon publishes its financial results quarterly, and investors should focus on the growth of AWS, e-commerce, and digital advertising, as these segments represent the company's main revenue sources. It's also important to monitor its expansion in artificial intelligence with Amazon Alexa and AWS AI, as well as its competition with giants like Microsoft (Azure), Google (Cloud), and Walmart (e-commerce).

5. Portfolio Diversification:
   Despite its dominance in various industries, Amazon faces risks such as regulatory pressures, logistical costs, and growing competition. To mitigate these risks, investors can diversify their portfolios with other tech companies like Alphabet, Microsoft, Apple, Meta, and ETFs such as QQQ (Nasdaq 100) or VGT (Vanguard Information Technology ETF).

SWOT Analysis of Amazon as an Investment

This SWOT analysis examines the internal and external factors affecting Amazon, the e-commerce giant and leader in cloud services. Recent data and projections have been incorporated to highlight its market position in the US, its capacity for technological innovation, and the regulatory and economic challenges it faces.

Strengths:

• Dominance in e-commerce: With an estimated 38% market share in US e-commerce (Statista, 2024), its robust logistics network delivers over 5 billion packages annually, driven by Prime, which has 200 million subscribers.

• Leadership in cloud: AWS generated $100 billion in revenue in 2024 (projection), with a 32% share of the cloud computing market, surpassing Microsoft Azure and Google Cloud.

• Economies of scale: Its network of over 1,500 distribution centers and bulk purchases significantly reduce unit costs, allowing it to maintain operating margins of 30% in AWS, compared to 5% in its retail segment.

• Financial capacity: With approximately $80 billion in cash (estimated data), Amazon has the resources to invest in AI innovation, drones, and expansion into new markets.

Weaknesses:

• Low margins in e-commerce: Amazon's retail segment reported a 2% net margin in 2023, pressured by high logistics costs and aggressive discounts to maintain competitiveness.

• Dependence on AWS: Although diversified, AWS contributed 70% of operating profits in 2024 (projection), exposing Amazon to significant risks if cloud demand slows down.

• Regulatory scrutiny: Penalties such as the $1.3 billion fine in Europe for privacy issues (2021) and antitrust investigations in the US (2024) create uncertainty and high legal costs.

Opportunities:

• Expansion in emerging markets: India and Southeast Asia, with projected annual e-commerce growth of 25% until 2027 (eMarketer), could add up to $50 billion in annual sales by 2030.

• Innovation in AI: The development of solutions such as an enhanced version of Alexa or generative AI tools for AWS has the potential to capture a $200 billion market in the next decade (Gartner).

• Advanced logistics: The expansion of services like Amazon Air and the use of drones, tested in 2024, could reduce delivery costs by 15% and generate new revenue through third-party logistics services.

Threats:

• Fierce competition: Walmart in e-commerce and Google Cloud in the AI and cloud sector are eroding market share, while platforms like Temu and Shein are capturing ground in budget shopping, affecting approximately 10% of Amazon's sales.

• Regulatory risks: New antitrust laws in the US (expected in 2025) and carbon regulations in the EU could increase operating costs by up to $2 billion annually.

• Economic instability: A global recession in 2025 could reduce spending on non-essential goods (which account for 30% of Amazon's sales) and slow the signing of new contracts for AWS.

What is an International Stock Broker?

An International Stock Broker is the entity (or platform) that allows you to buy and sell shares of companies listed on stock exchanges in different countries around the world. Unlike a local broker, the main focus of International Brokers is to offer access to global markets, such as the American, European, or Asian markets.

Why do we need an International Stock Broker?

Investing in international stocks can be an excellent way to diversify your portfolio, as it gives you the opportunity to participate in the growth of economies and sectors worldwide. However, operating in global markets is not as simple as doing so in the local market: it requires specific knowledge, compliance with international regulations, and the use of advanced trading platforms.

An International Stock Broker brings all these investment opportunities together in one place and allows you to access different exchanges and trading conditions, in exchange for a commission.

Examples and Comparisons:

There are several well-known International Stock Brokers, such as Interactive Brokers, eToro, TD Ameritrade, or Saxo Bank, among others. Each offers trading platforms with particular features and commissions that vary according to the service. Some stand out for providing market advice and analysis in various languages, while others may offer more competitive operating costs or social investment tools. These details allow you to choose the option that best suits your needs and investor profile.

Regulatory and Security Aspects

It is essential that the International Stock Broker you choose is regulated by recognized entities in the country where it operates, such as the U.S. Securities and Exchange Commission (SEC) in the United States, the Financial Conduct Authority (FCA) in the United Kingdom, or the Securities and Exchange Commission of Brazil (CVM), among others. This supervision ensures that the broker complies with strict security and transparency standards, providing you with greater confidence when investing your money.

How do Brokers “connect” to International Markets?

Through agreements with foreign stock exchanges and the use of advanced technological platforms, International Stock Brokers process the buy and sell orders placed by their clients. They organize the transactions according to price, order of arrival, and other parameters, and charge a commission when the transaction is executed. This technological infrastructure allows operations to be carried out quickly and securely, facilitating real-time monitoring of your investments.

In conclusion, an International Stock Broker is your gateway to the most important stock markets in the world. Thanks to its regulation, trading platforms, and knowledge of global markets, you can diversify your portfolio and seek growth opportunities in different sectors and countries.