This article appeared on Forbes.com
Amazon reached a market capitalization of for the first time 2,000 billion dollarsbecoming one of the few companies in the world with a valuation above that figure, as the recent AI-driven tech rally continues to break new records.
Main aspects
- Amazon’s market capitalization has surpassed $2 trillion, as its shares hit a record high of $193, adjusted for splits, gaining about 3.5%. The company reached the maximum market value at approx 2,010 billion dollars.
- The online retail giant joins Microsoft, Apple, Nvidia and Alphabet as the only publicly traded companies in the world with a market value of $2 trillion or more.
- Amazon’s shares were boosted by a modest rally in the technology sector, with the Nasdaq Composite up about 0.3%, and a bullish note from Bank of America analysts who raised their price target for the company’s stock from 210 to $220 (which would mean a further 12% increase for the stock and a market capitalization of 2,300 billion)
Jeff Bezos’ estate
On Wednesday, June 26, Jeff Bezos, founder and chairman of the board of directors of Amazon, became richer than anyone else in the world: his net worth grew by almost 6 billion dollarssecond Forbes.
Bezos’s fortune, from 209 billion dollars, is the second largest in the world, after that of Tesla CEO Elon Musk (219.2 billion). Bezos, who owns about a tenth of Amazon’s shares, is $35 billion richer than at the end of 2023.
The context
Bezos’s wealth surge is due to a long rally in Amazon stock, which has risen 27% since January 1 and 130% since the beginning of last year.
Now led by CEO Andy Jassy, the company is coming off its most profitable first quarter ever, with net income of 10.4 billion dollars. A huge improvement over Q1 2022’s $3.8 billion loss and Q1 2023 profit of $3.2 billion.
In addition to profit growth, Amazon shares have received a boost from broader investor interest in AI, with Amazon Web Services among the most recognizable products on the market. The company’s market value has grown by more than that 400 billion dollars in 2024. An increase still lower than the over 500 billion of Microsoft and Apple and the 1.800 billion of Nvidia.
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