It sure would have been nice to have invested in Amazon a year ago. Because COVID-19 has caused a massive surge in online shopping, the value of Amazon stock has doubled over the past year, skyrocketing from $1,770 to nearly $3,500.
If you had $5,000 worth of Amazon stock before the pandemic, now you’d have $10,000 of Amazon stock — without lifting a finger.
Would you like to get in on this? After all, online shopping isn’t going to disappear anytime soon. Maybe you could invest in Amazon and reap the rewards.
Ah, but do you have $3,500 handy? That’s the problem — even a single share of Amazon stock is really expensive.
Don’t let that stop you, though. The thing is, you don’t have to buy a whole share. You don’t have to have thousands of dollars burning a hole in your pocket. You can buy part of a share for as little as $1.
How To Own a Piece of Amazon or Google — for Less
Micro-investing apps like Stash allow you to buy “fractional shares” — fractions of shares — of major companies like Amazon or Google or Netflix or Zoom for as little as $1.*
By buying partial shares, you can invest in stocks or investment funds that you wouldn’t normally be able to afford.
Check out these stock prices as of mid-October 2020:
- Amazon: $3,370
- Google (Alphabet): $1,565
- Netflix: $540
- Zoom: $510
- Tesla: $460
- Disney: $125
It would cost you a lot of money to start buying up full shares of these companies.
When you sign up with Stash, you can choose to invest in whatever stocks or investment funds you want. For example, you can type “Amazon” into Stash’s search bar, and it immediately offers you the chance to invest in Amazon in $5 increments.
As for the funds, instead of overwhelming you with industry jargon, Stash curates and categorizes these funds and gives them understandable names. You can invest in tech companies or green energy providers or cybersecurity firms through funds like “American Innovators,” “Clean & Green” or “Data Defenders.” Or you can invest in funds with names like “Roll with Buffett,” “Moderate Mix” or “Global Citizen.”
More and More Young Investors Are Buying Partial Shares
The sale of partial shares is helping to drive increased stock trading, especially when it comes to shares of in-demand but high-priced tech stocks like Amazon, according to financial industry executives.
Amazon remains one of the most popular stocks among millennial investors. But, like we said, not everyone has $3,500 handy.
It takes two minutes to sign up for Stash. Plus, Stash will give you a $5 sign-up bonus once you deposit $5 into your account. Subscription plans start at $1 a month.**
*For Securities priced over $1,000, purchase of fractional shares starts at $0.05.
**You’ll also bear the standard fees and expenses reflected in the pricing of the ETFs in your account, plus fees for various ancillary services charged by Stash and the custodian.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.