In the wake of the general enthusiasm surrounding the mega-topic of artificial intelligence (AI), shares of Amazon crossed an important hurdle on Wednesday. The online retailer’s securities broke the $2 trillion mark in market value for the first time.
Most recently, Amazon shares rose by 3.9 percent to $193.53, making them one of the best values in the technology-heavy Nasdaq 100. This hardly moved from the spot.
Five companies worth more than $2 trillion
In terms of market value, the shares are Google-Mother Alphabet just ahead of Amazon. Then follow at a distance and in this order the chip manufacturer’s papers Nvidia, the computer company Apple and the computer company Microsoft, which is currently the most valuable company in the world. All three are currently worth more than three trillion dollars each on the stock market.
Amazon investors can look back on a month-long rally in their shares since the interim low in January 2023. At that time, the shares had plummeted to just over $81 after a month-long price slide.
At that point, stocks were simply oversold, wrote Dan Romanoff, an analyst at financial information and analytics firm Morningstar Investment Service. This means that after this pronounced downturn since the then record highs were reached in 2021, fewer and fewer investors were willing to continue selling their shares at these low levels.
Since the beginning of last year, the price trend has been clearly pointing upwards. Because Amazon had reduced its costs and restructured its business to better benefit from the AI wave. Additionally, its key business, Amazon Web Services, has shown signs of renewed growth acceleration, providing important reason for investors to be optimistic.
VW deal with Rivian supports the price increase
One of the things that could have played a role in the striking price strength of Amazon shares on Wednesday was that: good news from Rivian’s investment gave. Volkswagen gets help from Tesla challenger Rivian with electric cars – and spends billions for it. Europe’s largest car manufacturer wants to spend up to five billion dollars and jointly develop technology for future vehicles.
It’s a very welcome cash injection for Rivian: The company is still in the red and is currently experiencing declining interest in electric cars USA to fight. Amazon is a major shareholder in Rivian. Its shares recently skyrocketed by 21 percent.
Analysts at Bank of America also commented positively on Amazon’s shares. They increased their price target from $210 to $220 and maintained their buy recommendation for the shares.