As of August 30th, 2021, Amazon announced that it has come up with a new mode of payment that it will allow its customers to use. Amazon stock (NASDAQ: AMZN) was up by 2.4% on Monday 30th recorded at 1.30 pm EDT. This increase may not be remarkable but on $1.7 trillion stock, it is equal to adding $40.8 billion into the market capitalization.
Amazon Stock Price – Get the Details
To understand the rise following the announcement, let us go back to a couple of days ago. Affirm Holdings (NASDAQ: AFRM) “buy now, pay later” stock teamed up with Amazon. And Affirm Holdings said that Amazon will let its customers use this service as a payment option during the checkout process.
Interestingly, this is a piece of greater news for Affirm Holdings as compared to Amazon. This is evident because ever since it announced its service for Amazon customers, the company’s stock was up by 43.5%, registering a profit that is 20 times as much as the e-commerce giant.
This is equally good news for Amazon as well. This service will be offered to those customers that spend more than $50.
The new mode of payment is essentially an alternative to paying up in cash or using plastic cards for making purchases. It is quite likely that you may not want to always use plastic cards, but you are forced to. So, by availing of the services of Affirm Holdings, you can enjoy an installment plan for larger purchases.
While on one hand, the “buy now, pay later” concept might see increased spending at Amazon and this would be certainly good news for the e-commerce giant, on the other hand, there might be so-called “cannibalization” of huge purchases through the various channels of Amazon, like Prime Store, Amazon’s Prime Rewards, and Prime Secured plastic cards.
Also, by taking this step, Amazon will have to forego some of the revenue that it earns from the plastic card partners hoping to earn a little more by teaming up with Affirm and offering the new service.
However, time is the best metrics to prove whether the deal proved to be fruitful for Amazon as it is already working great for Affirm.
Amazon Stock Forecast
What will the Amazon stock quote be a few years from now? Let us go through the Amazon stock forecast here.
The Amazon stock might be heading for a massive gain in the event the predictions for the e-commerce giant made by the experts happen to be true.
By Sean Williams from the Motley Fool
Amazon is expecting to achieve the $10,000 target in the next four years, which is achievable by all means.
Amazon Stock Price History
Amazon.com (NASDAQ: AMZN), experts say boasts of an impressive stock price history. It will not be wrong to say that it is perhaps the greatest if we consider the last two decades. It is a classical case of exercising a lot of patience even when the Amazon stock had its fair share of upheavals.
However, it is for you to assess what it would have been during the below-mentioned periods when you were emotionally not ready to part with the stocks. Look at the statistics here.
