Amazon Hits $2 Trillion Valuation for First Time
NEW YORK — Amazon reached a significant milestone on Wednesday as its stock market valuation crossed the $2 trillion mark, thanks to a nearly 4% increase in its stock price.
The e-commerce giant, based in Seattle, now joins the ranks of companies like Google’s parent Alphabet, Microsoft, Apple, and Nvidia, all with valuations exceeding $2 trillion. This surge in Amazon’s stock price, which has seen a 52% increase in the past year, is attributed in part to investor excitement over the company’s investments in artificial intelligence.
Amazon’s CEO, Andy Jassy, has highlighted the company’s focus on AI technology, which includes the development of business-focused products like AI models and a chatbot named Q. Additionally, Amazon has invested in AI chip design and a San Francisco-based AI company, Anthropic.
Despite facing challenges such as an antitrust lawsuit from the FTC, Amazon has reported strong revenue and profits for the first quarter of the year. The company’s growth in its cloud computing unit AWS, as well as its core retail business and advertising, has contributed to boosting investor confidence.
While concerns about future challenges remain, including regulatory threats, investors remain optimistic about Amazon’s long-term prospects in the AI sector.
