Alphabet Inc. also crossed the $2 trillion threshold at the end of April, and this increase has also pushed the market values of Nvidia Corp., Microsoft Corp. and Apple Inc. to surpass $3 trillion.
amazon reached a market value of US$2 billion on Wednesday, becoming the fifth US company to surpass this figure. This milestone was achieved thanks to an increase in investment in technological valuesdriven by optimism about the artificial intelligence and the possibility of interest rate cuts.
The content you want to access is exclusive for subscribers.
to subscribe I am already subscribed
Amazon shares rose 3.9% to $1.921, giving the e-commerce giant a market value of $2 trillion. Amazon joined an exclusive club of tech companies that have reached the milestone, alongside Microsoft Corp, Apple Inc, Nvidia Corp and Alphabet Inc.
This Thursday, Amazon stock climbs 0.5% before market openingor, but in the last month it accumulates a positive balance of 7.1% and in the last six almost 30% (+26.2%).
Alphabet Inc. crossed the $2 trillion threshold at the end of April, and this increase has also led to the market values of Nvidia Corp., Microsoft Corp. and Apple Inc. surpassing $3 trillion.
Amazon’s background
Since its first quarter earnings report, shares of amazon have shown notable volatility. Its cloud unit’s biggest sales growth in a year helped lift the stock price above its all-time high set in April. Shares rose again in June, recovering from losses suffered in late May and posting a gain of approximately 27% so far this year.
Prices also received support from a new report from Bank Of America that established a new Price target of US$220 (13% above the current value). This news joins some more from the technology sector that have occurred in recent months, but concerns are increasing regarding the possibility of presenting evaluations exaggerated in the sector that induce a future correction, points out the Inviu Research & Strategy team.
Amazon.jpeg
Comparative graph of Amazon’s performance against other cloud business competitors. Inview
The momentum in Amazon stock has been significant. Last year, the company made cost cuts and restructured its business to capitalize on the rise of artificial intelligence. Additionally, its key web services business has shown signs of revitalization in its growth, which is a major point of optimism for investors.
“Part of Amazon’s stock’s strong performance over the past six to nine months is due to the fact that it was oversold at the end of 2022,” explained Dan Romanoff, an analyst at Morningstar Investment Service.
