On Friday, Amazon.com Inc. continued its upward trajectory in stock value, reaching its highest closing level in over two years. The e-commerce giant’s shares saw a 2.7% increase, ending the session at $174.45.
This marks its best closing level since December 9, 2021, when Amazon’s stock closed at $147.17, as per data from Dow Jones Market Data.
Last week, Amazon briefly surpassed Alphabet Inc. to become the third most valuable U.S. company by market capitalization. While it has slipped back to the fourth position since then, Amazon’s recent momentum has ensured its place in the top four, with Nvidia Corp. closely trailing.
Alphabet currently holds a market capitalization of $1.86 trillion, followed closely by Amazon at $1.81 trillion, and Nvidia at $1.78 trillion.
Wall Street’s reaction to this quarter’s earnings from major technology companies was varied, yet Amazon’s results were favorably received.
UBS analyst Stephen Ju conveyed optimism in a note to clients, suggesting that factors previously constraining Amazon’s shares, such as e-commerce deceleration in 2021, margin compression in 2022, and AWS deceleration in 2023, are projected to ease throughout 2024.
Amazon has played a crucial role in propelling earnings growth for the S&P 500 consumer discretionary sector. Its quarterly earnings per share surged from 3 cents to $1 in the latest quarter.
FactSet data indicates that the consumer discretionary sector is expected to achieve a notable 33% growth in earnings per share for the fourth quarter. Nevertheless, excluding Amazon from this calculation would yield a decline of approximately 1%.
Amazon’s enduring positive momentum highlights its resilience and strategic market positioning. Despite encountering challenges and uncertainties, the company’s knack for surmounting obstacles and delivering robust financial results has struck a chord with investors.
The e-commerce titan’s steadfast performance, along with favorable reactions to its recent earnings, solidifies its status as a pivotal player in the competitive landscape.
As Amazon keeps up with changes in the business world and adjusts to shifts in the market, how its stock does shows how confident investors are feeling.
Amazon’s smart moves and strong finances make it a big deal in the tech and online shopping scenes. People watching the market will likely pay close attention to what Amazon does next and how well it does financially amid all the changes.
