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Amazon reaches $2 trillion market value

Written by Thu 27 Jun 2024

Image Credit: Reuters

Amazon has reached $2 trillion (£1.5 trillion) in market value for the first time, making it the fifth US company to surpass this milestone.

Stocks in Amazon role 4% to £152.40 ($192.70), giving the company over £1.5 trillion ($2 trillion) and putting it in the same club as tech giants like Microsoft, Apple, NVIDIA and parent company of Google, Alphabet.

This rise was attributed to the rising optimism and demand for artificial intelligence (AI). Reuters reported US stock indexes have seen strong increase also due to confidence in the US economy’s ability to bounce back, and hopes that the Federal Reserve might lower interest rates.

Amazon’s stock, which joined the Dow Jones Industrial Average in February, has risen more than 26% this year. In February, the company became the fifth-largest US company by market value, moving up a rank following NVIDIA rise.

Currently, Amazon Web Services (AWS) is the largest cloud provider in the world. The company has also invested in AI startup, Anthropic, and robotic company, Figure, to capitalise on surging AI demand.

In April, Amazon announced it will invest an additional £2.18 billion ($2.75 billion) in Anthropic.

This amount, added to the £1.79 billion ($2.25 billion) invested last September, will bring Amazon’s total stake in the company to £3.1 billion ($4 billion). In return for the investment, Amazon will obtain a minority ownership in the company.

Last year, Amazon revealed a series of custom-designed chips for data centres, targeting machine learning training and generative AI applications.

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Written by Thu 27 Jun 2024

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