Amazon CEO Andy Jassy.
CNBC
Amazon On Wednesday, the company’s shares closed up 3.9% at $193.61, pushing the company’s market value to exceed $2 trillion for the first time.
Amazon joins in crossing this milestone Nvidia, apple, letter and Microsoft, all worth $2 trillion or more. Investors have recently piled into technology stocks as excitement about generating artificial intelligence reaches fever pitch. One of the biggest beneficiaries is Nvidia, which makes graphics processors for servers used in large artificial intelligence models and has seen its market capitalization surge from $2 trillion to $3 trillion in just over three months.
Amazon shares have soared 27.5% so far this year, while tech-heavy companies Nasdaq It rose about 18% over the same period.
In April, the company reported first-quarter earnings that showed its Amazon Web Services business was continuing to rebound from the recent economic slowdown as companies cut back on cloud spending. Amazon executives also spoke at length about how AWS could benefit from the surge in demand for generative artificial intelligence services.
Investors have also welcomed the company’s recent cost-cutting moves, which have boosted Amazon’s profit growth in recent quarters. Amazon Chief Executive Andy Jassy has spent years trying to rein in company spending, including massive layoffs affecting more than 27,000 Amazon employees.
It took Amazon more than four years to cross the $2 trillion milestone. In 2020, its market capitalization reached US$1 trillion, the second time in history that it has reached US$1 trillion after exceeding the benchmark for the first time in 2018.
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