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Why is Amazon a good investment company?

Amazon is still an extremely relevant company. It dominates the U.S. online retail space and the cloud industry and has a strong-and-growing presence in many others areas, such as video streaming and advertising.

What Makes Amazon (AMZN) a Great Investment Pick

Alphyn Capital Management, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio net return of -13.4% was recorded by the fund for the first quarter of 2022, compared to its benchmark, the S&P 500 TR Index which delivered a -4.6% return for the same period. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

The Biggest Risks of Investing in Amazon Stock

Amazon has grown to become one of the largest companies in the world, both in terms of sales and market capitalization. But, with such great size, comes a set of unique risks.

The biggest risks of investing in Amazon.com, Inc. (NASDAQ: AMZN) stock are increasing competition, profit potential uncertainty, revenue growth uncertainty, speculative valuation and share price volatility.

Amazon has indeed delivered high revenue growth since going public in 1997, making investors optimistic about future performance.1 This growth has also caused investors to overlook the company’s unwillingness to generate sustained net profits.