Amazon has achieved a significant milestone by reaching a market valuation of over $2 trillion for the first time. This makes Amazon the fifth most valuable company in the world, dominated by other tech giants. The current leader in market valuation is Microsoft, with a market cap of $3.360 trillion.
The rise in Amazon’s market cap to $2.014 trillion was accompanied by a 3.9% increase in share prices, which reached $193.61. This growth was largely driven by the success of Amazon Web Services (AWS) cloud computing business and the continued focus on artificial intelligence technology.
Amazon’s share prices have increased by 29.13% since the beginning of 2024, showing a steady and consistent growth rate. The AWS division, which is the largest cloud provider globally, contributes around one-third of the market, similar to the combined market share of Microsoft and Google. AWS generated $25 billion in revenue last quarter, marking a 17% year-over-year increase and accounting for approximately 17% of Amazon’s total revenue.
CEO Andy Jassy highlighted the company’s Q1 financial results, emphasizing the growth acceleration driven by companies modernizing their infrastructure and the appeal of AWS’s AI capabilities. Jassy mentioned that AWS is now on track to achieve a $100 billion annual revenue run rate.
While Amazon’s journey to a $2 trillion valuation has been long, the company first surpassed the $1 trillion mark in 2018, experienced fluctuations, and reached it again in 2020. Despite facing tough competition from tech leaders like Microsoft and Nvidia, Amazon’s overall share price growth this year surpasses that of Microsoft by seven percentage points.
In the tech industry, the competition for the top spot is intense, with Nvidia emerging as the world’s most valuable company after surpassing the $3 trillion valuation mark. With a remarkable 201.81% increase in share prices since January, Nvidia’s growth poses a challenge for other tech giants, including Amazon.
As Amazon continues to innovate and expand its business, the battle for dominance among the top tech companies remains dynamic and ever-changing. The success of Amazon’s AWS division and its focus on cutting-edge technologies like artificial intelligence position the company as a key player in the global tech landscape.
