Amazon has reached a market valuation of $2 trillion for the first time in its history, consolidating its position as one of the most valuable companies in the world.
Because it is important. This milestone not only reflects Amazon’s continued dominance in e-commerce and cloud computing, a not-so-big but much more profitable leg. It also underscores growing investor enthusiasm for tech companies that are taking AI seriously.
The context. Amazon joins a select group of technology companies, all American, valued at over $2 trillion: Microsoft, Apple, NVIDIA and Alphabet.
This achievement occurs in the midst of a rally of the market driven by optimism around AI and, in the case of the United States, expectations of interest rate cuts.
Key factors. Fundamental to Amazon’s growth is its set of investments in AI technologies, including the $4 billion investment in Anthropic.
In addition, Amazon has also launched enterprise-oriented AI products, such as its Q chatbot for AWS users. Precisely its cloud, which was suffering a certain slowdown, has grown again. According to its CEO, Andy Jassy, it is on track to reach $100 billion in annual revenue. That is, a quarter of everything Apple invoices.
- Operational efficiency also comes into play. In recent times it has implemented measures in this regard, including the dismissal of more than 27,000 employees from the end of 2022.
- These are measures that have improved the company’s profitability and have made it reach its most profitable quarter (the first of this year).
- According to Bank of America analysts, Amazon is the largest carrier in the US, surpassing UPS. A proof of its logistical mastery.
- The estimate of packages delivered worldwide for this year is 9 billion.
The perspectives. Bank of America analysts believe the price target for Amazon stock will be higher than the previous forecast. It goes from $210 to $220 per share (at the time of writing these lines it is at $195.35).
NVIDIA recently reached $3 trillion in valuation and became the largest publicly traded company in the world. Microsoft, Apple and Alphabet have also experienced significant increases in this first half.
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Featured image | Xataka with Midjourney
