Amazon becomes a $2 trillion company, joining tech giants like Microsoft and Apple

In a significant milestone, Amazon's shares closed up 3.9% at $193.61 on Wednesday, propelling the company's market capitalization above $2 trillion for the first time. This places Amazon in the elite group of companies, including Nvidia, Apple, Alphabet, and Microsoft, all valued at $2 trillion or more. The surge in tech stocks can be attributed to the growing excitement surrounding generative artificial intelligence, with Nvidia experiencing a remarkable increase in market value from $2 trillion to $3 trillion in just over three months due to its role in powering large AI models. Amazon's stock has seen a 27.5% increase this year, outperforming the tech-heavy Nasdaq, which has risen approximately 18% over the same period. The company's recent first-quarter earnings report highlighted the continued growth of its Amazon Web Services business, rebounding from a previous slowdown. CEO Andy Jassy's cost-cutting initiatives have also been well-received by investors, contributing to Amazon's earnings growth in recent quarters. Jassy's efforts to streamline spending, including significant layoffs affecting over 27,000 employees, have been part of a broader strategy to enhance the company's financial performance. On Wednesday, Amazon's market cap surpassed $2 trillion as its stock reached a record high of $193, marking a 3.5% gain and a peak market value of approximately $2.01 trillion. The positive momentum was supported by a modest tech rally, with the Nasdaq Composite rising by about 0.3%. Bank of America analysts also raised their price target for Amazon stock, projecting further upside potential to $220, which would translate to a market cap of $2.3 trillion. Founder Jeff Bezos, now the chairman of Amazon's board, saw his net worth increase by nearly $6 billion, making him the world's wealthiest individual according to Forbes. Under the leadership of CEO Andy Jassy, Amazon recently reported its most profitable first quarter ever, with a net income of $10.4 billion, a significant improvement from previous quarters. The company's strong financial performance, combined with the ongoing tech rally driven by AI advancements, has positioned Amazon as a key player in the trillion-dollar club, reflecting its continued growth and market dominance in the tech industry.