Amazon: A fractional long run equilibrium relationship between Google trends, sales and closing prices.

Abstract

There is no doubt about the impact that Amazon has had on our way of buying, on the offer of products and on the distribution of goods. As a digital company (although it has a few physical points of sale), we can relate three main concepts: ‒ The use of the brand name in Google Trends. This tool measures the terms that users search for, segmenting by country and date. Through these figures we can know when and how many times the term ”Amazon” has been used in searches around the world. ‒ The company’s sales figures. This concept has a very direct relationship with the previous one. As an online company where purchases are made by accessing the website, we can establish a logical step between: Search, Visit to the website and Purchase. ‒ The data on the company’s share price. This data is of vital importance to know the health and value of the company in an objective way and within the market parameters.