Amazon hits $2 trillion valuation as AI hype boosts tech stocks
Shares rose 3.9 percent on Wednesday to close at $193.61, pushing its market value above $2 trillion. The company is now a member of an elite club of a handful of rivals that have surpassed the key company’s market capitalization.
Amazon shares have been up and down since the release of first-quarter results, when the cloud division posted its strongest revenue growth in a year, helping to push the stock back above the all-time high reached in April. The stock rebounded in June, erasing losses from late May and is up 27 percent so far this year.
Shares of the mega-cap technology company have gained value over the past year as the company cut costs and restructured its business to better capitalize on the AI boom. In addition, its key Amazon Web Services business has shown signs of accelerating growth again, which is a big reason for hope for investors.
“Part of Amazon’s strong stock performance over the past six to nine months was due to the stock being oversold at the end of 2022,” said Dan Romanoff, an analyst at Morningstar Investment Service.
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