Amazon Hits $2 Trillion Milestone, Joins Elite US Tech Companies League


Key Takeaways:
– Amazon has reached a $2 trillion market capitalization, making it one of the few U.S. tech companies to achieve this.
– This comes after a marked increase in Amazon’s stock which has risen nearly 30% this year and over 50% in the last 12 months.
– Amazon first reached the $1 trillion mark in 2018.
– Amazon Web Services and advertising, the company’s major profit generators, posted 17% and 24% year-on-year revenue growth respectively.

An Impressive Milestone for Amazon

On Wednesday, amazon marked a significant achievement by reaching a market capitalization of $2 trillion for the first time. This monumental milestone places Amazon within a select group of U.S. tech titans that share the same accolade. Last year’s tech slump which impacted most companies seem to have had a minimal effect on Amazon which has shown a notable bounce back.

Buoyant Stock Market Performance

Amazon’s stock performance remains on an upward trajectory. Its share price has risen almost 30% this year alone and an impressive 50% over the past 12 months. On Wednesday the shares closed at $193.61, reflecting a 3.9% increase for the day. This bullish trend follows Amazon’s achievement of the $1trillion mark in 2018.

Successful Day for Tech, Proving Resilient

Alphabet joined the $2 trillion club earlier this year in April, while Nvidia, Microsoft, and Apple have seen their valuation rise above $3 trillion. Their stellar performance, particularly in recent months, can be attributed to the AI frenzy and various cost-cutting initiatives adopted. This shows the resilience of tech giants, registering impressive financials even in face of industry challenges.

Q1 Earnings Surpass Expectations, Driving Revenue Up

Amazon reported a first-quarter earnings report in April that exceeded market expectations. Revenue growth for Amazon stood at $143.3 billion, representing a 13% year-over-year increase. Earnings per share also showed an impressive figure of $0.98.

Amazon Web Services and Advertising On a Roll

Two of Amazon’s major profit drivers, Amazon Web Services and advertising, reported encouraging statistics. Their revenues grew 17% and 24% year-over-year respectively, significantly contributing to the company’s overall earnings.

In conclusion, Amazon’s marked growth in its $2 trillion market capitalization comes as encouraging news. This latest achievement coupled with its robust financials and profound stock performance solidifies its place among the elite league of U.S tech companies. For investors, industry leaders, and market observers alike, these trend indicates that Amazon remains resilient and continues to grow in the face of diverse global business conditions.

Read more

More News