Shares of Amazon rose 4% to nearly $194 on Wednesday, surpassing a market cap of $2 trillion for the first time. Bank of America reiterated a buy rating on Amazon stock and projected that the retailer will deliver more than 9 billion packages globally in 2024, potentially surpassing UPS as the largest shipper in the US. The note also highlighted Amazon’s improved delivery speed, with almost 25% of units now being delivered the same or next day. Bank of America raised its price target on Amazon shares to $220.
Amazon has seen a 30% increase in its stock price this year and nearly a 50% increase over the previous 12 months. The company has focused on cost-cutting and restructuring to capitalize on the AI trend, while Amazon Web Services has shown signs of growth, which has boosted investor optimism. Although Amazon may still be below its peak efficiency levels from 2018, it exceeded expectations in the first quarter with room for further efficiency gains.
Alphabet, the parent company of Google, reached a $2 trillion market cap in early 2024, joining Amazon in this milestone. However, both companies still trail behind Microsoft, Apple, and NVIDIA, all of which are valued at over $3 trillion. Tech companies, particularly NVIDIA, have been driving the S&P 500’s performance in 2024, with one analyst noting the unprecedented dominance of the chipmaker compared to historical industry developments.
Overall, Amazon’s achievement of a $2 trillion market cap reflects the continued growth and success of the company in the competitive retail and technology sectors. This milestone further solidifies Amazon’s position as a key player in the global market and reinforces investor confidence in its long-term potential for growth and innovation.
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https://fortune.com/2024/06/26/amazon-2-trillion-market-cap-alphabet-google-nvidia-microsoft-apple/