Amazon (AMZN) achieved a significant milestone on Wednesday as its shares surged nearly 4%, propelling the company’s market capitalization above $2 trillion. This makes Amazon the fifth U.S. company to reach such heights, joining the ranks of other tech giants like Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), and Nvidia (NVDA).
The boost in Amazon’s stock price comes amidst increased investment in artificial intelligence and cloud computing, areas where the company holds substantial market dominance alongside Microsoft and Alphabet. Analysts also cite anticipation of potential interest rate cuts by the Federal Reserve later this year, which has bolstered the tech sector. Additionally, Amazon’s e-commerce business has shown resilience despite the challenges posed by high inflation rates.
Amazon previously achieved a $1 trillion market cap milestone in February 2020, becoming the fourth U.S. company to do so at the time. However, the journey to its second trillion has been comparatively gradual, taking Amazon 1,104 trading days, or over four years, to reach this new pinnacle. In contrast, Alphabet and Nvidia achieved their second trillion-dollar valuations in 1,075 days and 180 days, respectively. Apple and Microsoft, the first companies to surpass the $2 trillion mark, achieved this milestone in 516 days.
On Wednesday, Amazon shares closed at $193.61, comfortably surpassing the $192.18 threshold required to cross the $2 trillion market cap mark. The stock’s intraday high approached $195, reflecting strong investor confidence and market momentum.
