Amazon hit a market capitalization of $2 trillion for the first time on Wednesday, joining only a few other companies in the world valued at that figure, the company said on Wednesday. Forbes. This milestone was achieved thanks to a recent technological rally powered by artificial intelligence (AI), which continues to set new records.
The valuation of amazon reached $2 trillion on Wednesday afternoon, when its shares hit a split-adjusted record price of $193, up about 3.5%.
This increase raised its market value to nearly USD 2.01 billion. With this figure, it joins Microsoft, Manzana, Nvidia and Alphabet as the only public companies in the world valued at more than USD 2 trillion.
The Wall Street Journal noted that one of the factors that helped boost the company’s shares was a modest rise in the technology sector, with the Nasdaq Composite rising around 0.3%, as well as an optimistic note from analysts at the Bank of America. They increased their price target for shares of amazon from USD 210 to USD 220, implying a possible increase of 12% for the shares and a market capitalization of USD 2.3 billion.
Jeff Bezosfounder and chairman of the board of directors of Amazon, became even richer on Wednesday, with his fortune growing to almost $6 billion, according to calculations by Forbes.
Bezos’s fortune, valued at USD 209 billionis the second largest in the world, only behind that of Elon MuskCEO of tesla, which has assets of USD 219.2 billion. The tycoon, who owns about a tenth of the company’s shares, is $35 billion richer than he was at the end of 2023.
The growth in Bezos’s fortune coincides with a series of prolonged rallies in Amazon shares, which are up 27% so far this year and 130% since the beginning of last year.
Now led by CEO Andy Jassythe company just came off its most profitable first quarter in history, with net income of USD 10.4 billiona significant improvement compared to losses of USD 3.8 billion in the first quarter of 2022 and profits of USD 3.2 billion in the first quarter of 2023.
In his annual letter to shareholders published in April, Jassy outlined his vision for how generative AI could be a critical pillar in setting up Amazon’s next phase of growth following the success of its Marketplace, Amazon Prime and its computing unit in the cloud, Amazon Web Services.
Among other contributions to this increase in Amazon’s market valuation, the company has seen a considerable increase in value of more than USD 400 billion in 2024. Despite this impressive performance, both Microsoft as Manzana have had increases of more than USD 500 billion, while Nvidia has added amazing value USD 1.8 billion.
Forbes highlighted that the company founded by Bezos took more than four years to add an additional trillion to its market capitalization since it surpassed the USD 1 trillion mark in February 2020. Compared, Nvidia It took just 180 days to reach its second trillionth, fueled by insatiable demand for its advanced chips that are powering the boom in AI.
Some analysts of Bank of America they emphasized Forbes the potential of the logistics business of amazonhighlighting that it has the potential to become the largest shipping operator in the USAsurpassing UPS. Analysts also projected an improvement in margins that could boost earnings estimates on Wall Street.
