Topline
Amazon netted a $2 trillion market capitalization for the first time ever Wednesday, becoming one of a handful of companies in the world valued at over $2 trillion as the recent AI-driven tech rally continues to mint new milestones.
Amazon chairman and founder Jeff Bezos.
Key Facts
Amazon’s market cap eclipsed $2 trillion in early afternoon as its stock traded at a record, split-adjusted share price of $193, gaining about 3.5% Wednesday to a peak market value of about $2.01 trillion.
The online commerce colossus joins Microsoft, Apple, Nvidia and Alphabet as the world’s sole public companies worth $2 trillion or more.
Helping boost Amazon shares Wednesday was a modest tech rally, with the Nasdaq Composite up about 0.3%, and a bullish note from Bank of America analysts upping their price target for Amazon stock from $210 to $220, implying 12% further upside for the stock and a market cap of $2.3 trillion.
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Forbes Valuation
Jeff Bezos, Amazon’s founder and chairman of its board, got richer Wednesday than anybody else in the world as his net worth grew by nearly $6 billion, according to Forbes’ calculations. Bezos’ $209 billion fortune is the second-largest in the world, trailing only Tesla CEO Elon Musk’s $219.2 billion net worth. Bezos, who owns about a tenth of Amazon’s equity, is $35 billion wealthier than he was at the end of 2023.
Key Background
Bezos’ growing riches came as Amazon stock mounted an extended rally, with shares up 27% year-to-date and 130% dating back to the beginning of last year. Now led by CEO Andy Jassy, Amazon is fresh off of its most profitable first quarter ever, with its $10.4 billion net income a massive improvement from 2022 Q1’s $3.8 billion loss and 2023 Q1’s $3.2 billion profit. In addition to Amazon’s growing bottom line, its stock has also enjoyed a boost from the broader investor interest in AI, with Amazon Web Services among the most recognizable AI products on the market. Amazon’s market value is up more than $400 billion in 2024, outdone by Microsoft’s and Apple’s more than $500 billion respective gains and Nvidia’s $1.8 trillion coup.
