:max_bytes(150000):strip_icc()/GettyImages-1867433075-af35fa87f3404a81bc880d1c35f87567.jpg "Amazon Becomes Fifth US Company To Reach $2 Trillion Market Cap")
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Key Takeaways
- Amazon on Wednesday became the fifth U.S. company to reach a market capitalization of more than $2 trillion.
- Amazon’s stock, which needed to close above $192.18 to keep its $2 trillion market cap, finished up nearly 4% at $193.61 Wednesday.
- It took the stock more than 1,100 days to add its second trillion, relatively slow going compared with the $3 trillion club of Apple, Microsoft and Nvidia.
Shares of Amazon (AMZN) rose nearly 4% on Wednesday, making the e-commerce giant the fifth U.S. company to reach a market capitalization of above $2 trillion.
Amazon’s stock has been buoyed lately by surging spending on artificial intelligence and cloud computing, a field in which it commands significant market share alongside Microsoft (MSFT) and Alphabet (GOOGL). Bets that the Federal Reserve will cut interest rates later this year have given tech stocks a leg up, while Amazon’s e-commerce business has held up despite the pressures of high inflation.
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Reached $1 Trillion Market Cap in 2020
Amazon was the fourth U.S. company to close above $1 trillion when it first did so in February 2020. Booking the second trillion has been slow going for the company, at least when compared with most of its mega-cap peers.
It took Amazon 1,104 trading days, or more than four years, to add its second trillion dollars. Meanwhile, Alphabet’s second trillion took 1,075 days; Apple (AAPL) and Microsoft, the first companies to cross $2 trillion, both needed 516 days. And blowing them all out of the water was Nvidia (NVDA), which surged to $2 trillion from $1 trillion in just 180 days.
Amazon shares needed to close above $192.18 on Wednesday to clear the $2 trillion threshold. The stock finished up almost 4% at $193.61. Its intraday high was near $195.