Looking for Amway stock to invest in? I don't blame you. They're an interesting company. Surely you've heard of this company. Even if you've not used or bought their products directly. Sadly, right now they are a private company and not publicly traded. Amway stands for American Way and is a multi-level marketing company that specializes in selling home goods, cosmetics, health and beauty products, and so much more.
Is There Amway Stock to Trade?
- If you're looking to trade Amway stock, you're out of luck. Amway isn't a publicly traded company. As a result, you can't trade them in on the stock market. However, that may not be a bad thing. Multi Level Marketing (MLM) companies may not make the best stocks to trade. The Bullish Bears can help you find companies to invest in.
1. Amway Companies
Even if you've never seen or heard the name Amway, you're definitely familiar with some of the brands that fall under its corporate umbrella.
Amway was founded back in 1959 in Ada, Michigan, by two extremely successful Nutrilite distributors named Jay Van Andel and Richard DeVos. So Nutrilite is probably the first brand you'll recognize under Amway’s control. And as far as global reach, is definitely the most well-known. There are numerous other brands under Nutrilite’s control.
We'll go through them later in the article, but now you get the idea of what kind of corporation Amway is. You may be surprised to hear that despite its name being the short-form of American Way, Amway operates in well over 100 countries around the world with over 16,000 employees and a reported $8.4 billion in revenue in 2019.
But at its core, it's the industry that Amway is in and the way it does its business that often has people raising their eyebrows. Which is probably why there's no Amway stock.
2. Well, Amway Is Just a Pyramid Scheme Isn’t It?
Yes and no. The answer probably depends on which side of the fence you're on when it comes to multi-level marketing companies.
More often than not people will just dismiss brands like Nutrilite or XS Energy as pyramid schemes, rather than actual products being sold and distributed in non-traditional ways.
While it's easy to label something as illegitimate, it should be noted that Amway has never been found to be doing anything illegal.
Nor have they been guilty of running a pyramid scheme by the Federal Trade Commission (FTC) or any other governing bodies in other countries. Which would be good if there ever is an Amway stock.
3. Wait, What Is a Pyramid Scheme Then?
On the surface, Amway definitely seems like something that could be classified as a pyramid scheme. The loophole it uses is that while the corporate structure definitely resembles a pyramid, Amway actively sells real products and pays for its recruitment.
Typically, a pyramid scheme sees the members at the top profiting off of the work of everyone who joins after them. Each new member recruits additional members.
As a result, the commissions and sales continue to trickle up through the organization, until everyone who is above those new members is paid.
For true pyramid schemes, the lowest members often fail to generate any sort of profit and so inevitably quit. Which causes the entire structure of the organization to eventually crumble.
In the United States, pyramid schemes are also illegal and are punishable by up to four years in prison or a hefty fine.
You could say Amway is almost like penny stock promoters. If there was an Amway stock, we might not like the investors if they treated it like a penny stock pump and dump.
Can I Buy Amway Stock?
- Funny you should ask! Amway isn't a publicly traded company. So you'll not find its ticker symbol on any stock exchanges right now. Despite regularly being in the top 50 largest privately owned companies in America, Amway has never opted to bring itself to the public markets. While Amway is a family owned business, becoming a publicly traded company also means complete transparency for shareholders. As well as ceding some control of the company to institutional investors.
1. Some Multi-Level Marketing Firms You Can Invest In
Do you like the idea of multi-level marketing and how Amway operates and wish you could buy Amway stock? Even though you cannot buy Amway stock, you can invest in other companies that operate with a similar structure and system as Amway.
Although we cannot guarantee these will be good investments for you! Here is a list of a few well-known multi-level marketing firms that you can buy shares of today!
2. Herbalife Nutrition Ltd. (NSYE:HLF)
Herbalife is another well-known multi-level marketing company. In fact, you've probably come across its weight loss or dietary supplement products at some point.
They were established in 1980 by founder Mark Hughes who sold the first Herbalife supplements out of the trunk of his car. The company made its debut on Wall Street as an IPO in December of 2004 at $14 per share.
Like Amway, Herbalife definitely has its share of controversy in its past. Several notable investors have accused the company of operating a pyramid scheme.
This includes well-known hedge fund manager Bill Ackman who famously had a $1 billion short position against Herbalife’s stock. Perhaps Herbalife’s greatest obstacle has been the continuous findings in many countries of liver damage to people who ingest their products.
Despite these allegations, Herbalife has sponsored the L.A. Galaxy MLS Soccer team, Christiano Ronaldo since 2013, and Lionel Messi from 2010-2013.
Herbalfe’s stock is currently trading around $48 per share. And the company has a market cap of nearly $6 billion. Which would bode well for Amway stock.
3. Usana Health Sciences (NYSE:USNA)
Yet another company that has become synonymous with multi-level marketing, Usana sells mainly nutritional and dietary supplements.
Along with personal care products for skincare. Established in Utah in 1992, Usana’s products are now sold in dozens of countries around the world.
In fact, they have nearly 350,000 sales associates that help to deliver their products to its customers.
As you may have already suspected, Usana is another multi-level marketing company that has a past riddled with controversy. Several investigations by the SEC and other government agencies have come up empty.
But Usana is definitely on the radar for its corporate governance. Back in 2007, Usana’s board of directors were under scrutiny.
It was discovered that several members of the board had lied or exaggerated their medical education and licenses. Usana has a long past of being sued by its own employees as well.
That's never really a good look for any company, regardless of the industry. Despite all of this, Usana’s stock trades at just over $77 per share. And has been a consistent investment for shareholders. Which would make people excited for Amway stock.
4. Nu Skin Enterprises (NYSE:NUS)
Another multi-level marketing company that deals in nutritional supplements and healthcare products is Nu Skin. They're relatively under the radar as far as these brands go.
Like Usana, Nu Skin is based out of Utah but operates in markets all around the world. Particularly in Asia. Nu Skin has made severalLLifeGen which is used to legitimize their aging skin products called the ageLOC brand.
As always, Nu Skin has undergone criticism from the media and the FTC about its pyramid structure; but has largely gone unpunished.
Other controversies include alleged bribery of Chinese officials as well as lab tests on their products revealing that its contents fail to meet the standards of the FDA. Nu Skin’s stock trades at just under $55 per share with a market cap of nearly $3 billion.
5. Amway Stock Potential
Compared to these three companies, Amway boasts the largest global workforce and highest annual revenues. Therefoe, if it ever did decide to go public, we can expect it to have reasonably high valuation and larger market cap.
It's difficult to estimate what the price of Amway’s stock would be. But it certainly has a good chance of being higher than Herbalife or Usana.
One thing Amway has continued to do that sets itself apart from other multi-level marketing firms is to reinvent its brand. Amway underwent a fairly big change in 1999.
Amway and its sister company Alticor, created Quixstar, an entirely new brand that offered the same products. In 2007, the Quixstar experiment ended.
Then Amway rebranded itself again as Amway Global in every country that it operated in. Amway does have country specific brand names such as Amway China or Amway Australia. However, these all operate under the larger Amway Global umbrella.
Amway Stock Conclusion
Are you're like the millions of sellers and distributors around the world that work for multi-level marketing companies? Then you may think Amway would be a good investment. You’re not wrong.
The company has strong revenues and several globally recognized brand names that provide strong, recurring revenue streams in every market. Don't let the controversy and questionable business practices of the company sway you. Amway is a financially stable company that would be a good investment.
If you're the type of investor that only buys shares of companies that you ethically align yourself with, then Amway or any of these other multi-level marketing firms may not be for you.
Luckily, for now, Amway isn't a publicly traded company. So you'd have trouble finding Amway’s stock anyway.