In a historic milestone, Amazon has reached a market cap of more than $2 trillion for the first time, while maintaining its position as the fifth most valuable company in the world.
Dominated by Big Tech, the top five sees Amazon in fifth place with a market cap of $2.014 trillion, trailing far behind current leader Microsoft, which currently holds prime position with a market cap of $3.360 trillion.
The ecommerce giant’s share prices rose by 3.9% yesterday to $193.61, driven largely by its AWS cloud computing business and ongoing support for artificial intelligence technology.
Amazon reaches $2 trillion market cap
Amazon share prices are up 29.13% from the start of 2024, marking a steady and consistent growth rate. The company’s AWS division, the world’s largest cloud provider, accounts for around one-third of the market, or the same proportion as Microsoft and Google combined, and has been instrumental to the business’s success.
Last quarter, AWS drew in $25 billion in revenue, up 17% year-over-year. Coincidentally, it also accounts for around 17% of Amazon’s entire revenue.
Speaking about the company’s Q1 financial results, CEO Andy Jassy said: “The combination of companies renewing their infrastructure modernization efforts and the appeal of AWS’s AI capabilities is reaccelerating AWS’s growth rate (now at a $100 billion annual revenue run rate.”
However, to reach a $2 trillion valuation has been a long path. Amazon’s market cap first broke the $1 trillion barrier in 2018, before dipping and passing it again in 2020.
Still, Amazon’s overall share price growth this year to date is around seven percentage points higher than Microsoft’s.
As the battle for first place plays out among five of the world’s tech leaders, Amazon will have to take on the giant that is Nvidia. Now in third place, the chipmaker broke the $3 trillion valuation mark and became the world’s most valuable company earlier this month after a 201.81% increase in share prices since January.
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