For the first time, Amazon's market value surpasses $2 trillion
On Wednesday, Amazon's stock price increased 3.9% to $193.61, surpassing $2 trillion in market capitalization for the first time. Amazon now has a net worth of $2 trillion or more, joining Nvidia, Apple, Alphabet, and Microsoft in having reached this milestone. With the hype surrounding generative artificial intelligence reaching a fever pitch, investors have recently poured into tech equities. Nvidia, a company that produces graphics processors for servers that run massive AI models, has benefited greatly from this phenomenon; in less than three months, its market worth has increased from $2 trillion to $3 trillion.
Amazon's stock has increased by 27.5% so far this year, compared to the tech-heavy Nasdaq's gain of roughly 18% during the same period.
The business revealed first-quarter profits in April, indicating that Amazon Web Services was still growing after a recent slowdown brought on by companies cutting back on their cloud spending. Executives from Amazon also talked extensively about how AWS stands to gain from the growth in demand for generative AI services.
The company's latest cost-cutting measures, which have supported Amazon's earnings growth in recent quarters, have also been well received by investors. In an effort to control the company's spending, Amazon CEO Andy Jassy has been implementing sweeping layoffs that have impacted over 27,000 workers.
Amazon needed over four years to reach the $2 trillion mark. In 2020, its market capitalization surpassed $1 trillion for the second time in its history, having first achieved this milestone in 2018.
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