Amazon Hits $2 Trillion Market Cap Milestone

On Wednesday, Amazon reached a significant milestone, achieving a market capitalization exceeding $2 trillion for the first time. This places Amazon among a select group of companies globally valued at over $2 trillion, benefiting from the ongoing surge in AI-driven technology stocks.

During early afternoon trading, Amazon’s stock soared to a record split-adjusted share price of $193, marking a 3.5% increase that propelled its market value to approximately $2.01 trillion. This achievement solidifies Amazon’s position alongside Microsoft, Apple, Nvidia, and Alphabet as one of the world’s few public companies valued at $2 trillion or more.

Wednesday’s gains were supported by a modest tech sector rally, with the Nasdaq Composite rising around 0.3%. Furthermore, optimism was bolstered by Bank of America analysts, who raised their price target for Amazon shares from $210 to $220. This adjustment implies a 12% potential upside for the stock, projecting a market cap reaching $2.3 trillion.

Valuation-wise, Amazon’s founder and board chairman, Jeff Bezos, saw his net worth surge by nearly $6 billion on Wednesday alone, now standing at $209 billion. This places him as the world’s second-wealthiest individual, trailing Tesla CEO Elon Musk, who holds the top spot with $219.2 billion. Bezos, who retains about ten percent ownership in Amazon, has witnessed his wealth grow by $35 billion since the end of 2023.

Contextually, Bezos’ wealth expansion coincides with Amazon’s robust stock performance, which has seen a 27% increase year-to-date and a remarkable 130% surge since the beginning of last year. Under the leadership of CEO Andy Jassy, Amazon recently reported its most profitable first quarter ever, achieving a net income of $10.4 billion, a significant improvement compared to losses and gains in previous first quarters.

Amazon’s stock rally is not just a reflection of its financial health but also underscores investor enthusiasm in AI technologies, with Amazon Web Services (AWS) being a prominent player in this space. In 2024 alone, Amazon’s market value has surged by over $400 billion, although it trails the gains of Microsoft and Apple, each gaining over $500 billion, and Nvidia, which achieved a $1.8 trillion valuation increase during this period.