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  • Writer's pictureRealFacts Editorial Team

Amazon Becomes 5th Company To Surpass $2 Trillion Market Cap

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Amazon (AMZN) reached a market capitalization exceeding $2 trillion on Wednesday following a 3.9% gain driven by a price target increase from a Bank of America analyst. Amazon now stands alongside Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), and Google's parent company Alphabet (GOOGL) as one of the five companies with market caps exceeding $2 trillion. The company has surged more than 29% year-to-date in 2024, contributing to this impressive valuation milestone. Amazon's significant market gains can be attributed to enhanced retail profitability, expansion in its Amazon Web Services division, and optimism surrounding advancements in generative AI technology.

On Wednesday morning, analysts at Bank of America increased their price target for Amazon from $210 to $220, expecting ongoing enhancements in the efficiency of Amazon's retail operations. Ryan Deffenbaugh, Investors Business Daily author, reported, “The BofA Securities analysts already rate Amazon as a top pick among large-cap tech companies in 2024. ‘Retail has been the big driver of recent estimate revisions (over Amazon Web Services), and with (first quarter) efficiencies exceeding expectations, we think Amazon is on a good path to drive more retail margin leverage upside in 2024,’ BofA Securities analyst Justin Post wrote Wednesday. While 2023 was a ‘banner year’ for Amazon's logistics, Post added, ‘Our analysis suggests runway still ahead for efficiency gains.’” Investor confidence in Amazon's potential for improved efficiency spurred the nearly 4% gain in the market today. Bank of America's price target of $220 suggests approximately an 18% potential increase from Amazon's closing price on Friday.


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