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Amazon achieves a market capitalization of $2 trillion for the first time.

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Amazon’s Chief Executive Officer, Andy Jassy, stood witness to the milestone achievement as the company’s shares surged 3.9% to reach $193.61 on Wednesday. This climb pushed Amazon’s market capitalization beyond the $2 trillion mark for the very first time.

In attaining this significant feat, Amazon now stands alongside tech giants such as Nvidia, Apple, Alphabet, and Microsoft, all boasting market values of $2 trillion or higher. The recent surge in tech stock investments can be attributed to the escalating excitement surrounding generative artificial intelligence technologies. For Nvidia, a key player in providing graphics processors for AI-powered servers, the journey from a $2 trillion market value to $3 trillion transpired in just over a fleeting three months.

Amazon’s shares have witnessed an impressive surge of 27.5% since the inception of the year. Meanwhile, the tech-laden Nasdaq index has recorded an approximate 18% rise during the same time frame.

Following the disclosure of its first-quarter earnings in April, Amazon illuminated the continued resurgence of its Amazon Web Services division from a recent deceleration induced by businesses scaling back on cloud expenditures. Amazon executives expounded upon the prospects for AWS in light of the surging demand for generative AI services.

Investors have lauded Amazon’s recent cost-saving endeavors, which have substantially bolstered the company’s earnings in the recent quarters. CEO Andy Jassy has embarked on a prolonged mission to curtail the company’s expenses, including extensive staff layoffs impacting over 27,000 Amazon employees.

It has taken Amazon slightly over four years to transcend the $2 trillion threshold. The company’s market valuation reached $1 trillion in 2020, marking the second instance in its history after the initial achievement in 2018.

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Source: Visit CNBC for further details

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