We provide the latest news
from the world of economics and financeAmazon.com Inc. is on pace to finish the trading day with a record-high market capitalization, which would be its first in nearly three years.
With Amazon’s stock AMZN, +1.09% up 1.0% in Wednesday trading to a recent $182.44, its market capitalization would be $1.89 trillion if those gains carried through to the close. The company had a market value of $1.88 trillion on July 8, 2021, which is when it achieved the prior record.
Amazon’s stock needs to close above $181.166 for the e-commerce giant to set a new market-cap record, according to Dow Jones Market Data. It needs to top $182.914 to achieve a $1.9 trillion market capitalization and $192.541 to hit the $2 trillion mark.
While Amazon’s valuation is on pace to notch a new record, the shares themselves aren’t yet on track to notch a new high. They need to surpass $186.57 to do so.
The discrepancy stems from the fact that Amazon’s split-adjusted share count has increased by 316.1 million, or 3.1%, since the company last racked up a market-value record.
Amazon’s stock has had a good start to the year after performing strongly in 2023. Shares are up nearly 20% so far in 2024, outpacing the S&P 500’s SPX 9% ascent. The stock advanced just over 80% in 2023.
The company has seen its Amazon Web Services cloud-computing business energized by artificial-intelligence demand, and its retail business is showing improved margins on the heels of changes to its fulfillment networks.
Wells Fargo analysts named Amazon shares a “high-conviction” second-quarter pick earlier this week, flagging further retail margin-expansion opportunity thanks in part to a shift in the fee structure for sellers using Amazon’s fulfillment services.
The company also stands to benefit from growth in the TV advertising market, Wedbush analysts said earlier today.