Amazon has achieved a remarkable milestone by reaching a market value of over $2 trillion for the first time, solidifying its position as one of the leading tech companies globally. This achievement places Amazon in an elite club, with only four other companies surpassing this significant mark.
The rise in Amazon’s market value was driven by a record increase in share prices, which soared to $193.61 per share. This surge has propelled the company’s market capitalization to a staggering $2.015 trillion, as reported by Dow Jones Market Data Group. It marks a significant achievement, considering that it has been over 1,000 days since Amazon last reached the trillion-dollar milestone.
Shares of Amazon have seen a substantial increase of over 24% this year, outperforming the Nasdaq Composite’s rise of nearly 19%. Bank of America has raised its price target for Amazon, citing advancements in artificial intelligence and improvements in logistics as key factors contributing to the boost. The new target of $220 per share represents a 15% increase from the current levels.
The timing of this achievement is notable, as it precedes Amazon’s highly anticipated Annual Prime Day, scheduled for July 16 and 17. Prime Day offers exclusive deals and discounts to Prime members, with last year’s event resulting in record-breaking sales of over 375 million items. In the second quarter of 2023, Amazon reported an 11% increase in sales to $134 billion compared to the same period last year.
Founder Jeff Bezos, who holds a 9% stake in the company, stands to benefit significantly from Amazon’s soaring stock price. With a net worth of $210 billion, Bezos ranks as the second-richest person globally, trailing behind Elon Musk. Berkshire Hathaway, led by Warren Buffett, holds the second-largest single ownership stake in Amazon, followed by CEO Andy Jassy.
This milestone comes amid a successful year for the tech industry, with companies like Nvidia, Apple, and Microsoft also reaching market values above $3 trillion. The focus on artificial intelligence has been a driving force behind the growth of these tech giants, with investments in AI technology yielding substantial returns.
In a competitive landscape where tech companies are vying for the top position, Amazon’s achievement of surpassing $2 trillion in market value further solidifies its position as a key player in the industry. With a strong focus on innovation and customer satisfaction, Amazon continues to set new benchmarks for success in the tech world.
