Hyeon Ji Shin
UC Riverside Extension Center, 1200 University
Ave, Riverside CA 92507-4596
Phone : (951)275-4400
e-mail : [email protected]
Amazon.com Inc. is the largest online retailer. I spent $10,546.50 to buy 50 shares of the stock in
AMZN. This company is a high risk company, but actually, stock price of the company have increased
about 18% since the start of 2011 according to reuters.com. Therefore, I thought Amazon.com was
worth the investment.
After I bought the shares, the price was increasing quickly first, and then, next two days, the
price went down almost at the same price again. According to Newsy Stocks.com analysts at Caris &
Company set an “above average” rating and a $249 price target on the stock on July 17; in addition,
analysts at Evercore Partners predicted shares of AMZN would go up to $270 in a research note on July
18. These good prospects of analysts might influence inventors for a while.
On July 27, the stock market was bad, but the stock price of AMZN went up sharply to 222.52
per share because, at that time, AMZN announced their second-quarter profit and sales. According to
Boomberg, AMZN’s net income was $191 million, or 41 cents a share, net sales was $9.91billion.
Analysts had predicted 34 cents per share. In addition, next day, REUTERS reported that AMZN got
digital video license agreement with NBCUniversal domestic TV distribution. The new expansion of
business and the really good result of second-quarter made people expect that AMZN would give
satisfactory results to them. Thus, many people wanted to buy the shares of AMZN, so the stock price
increased.
Even though AMZN is a high risk company and the price is not stable, I don’t want to sell their
shares. I believed they can develop more than now. Many analysts have told this company will make a
profit in the future. I guess that the stock price will not decrease suddenly. For two weeks, I earned
around 520 dollars. It was a good investment. If the economy improves, I can get more profits through
the shares of AMZN.
2. Coca-Cola Company (KO)
KO
70
69.5
69
68.5
68
67.5
67
66.5
66
65.5
2011/08/01
2011/07/31
2011/07/30
2011/07/29
2011/07/28
2011/07/27
2011/07/26
2011/07/25
2011/07/24
2011/07/23
2011/07/22
2011/07/21
2011/07/20
2011/07/19
2011/07/18
KO