Amazon CEO Andy Jassy has overseen a significant milestone for the company, as Amazon's market cap surpassed $2 trillion for the first time. This achievement places Amazon in the elite group of companies, including Nvidia, Apple, Alphabet, and Microsoft, that are also valued at $2 trillion or more.
The surge in Amazon's shares, which climbed more than 3% in intraday trading on Wednesday, can be attributed to the excitement surrounding generative artificial intelligence. Investors have been flocking to tech stocks, with Nvidia seeing its market value soar from $2 trillion to $3 trillion in just over three months.
Amazon's shares have also experienced a strong performance this year, rising approximately 26% while the Nasdaq has seen an 18% increase over the same period. The company's first-quarter earnings report highlighted the continued growth of its Amazon Web Services business, which has rebounded from a recent slowdown.
Investors have shown support for Amazon's cost-cutting initiatives, which have contributed to the company's earnings growth. CEO Andy Jassy has implemented measures to rein in spending, including significant layoffs affecting over 27,000 employees.
It took Amazon more than four years to reach the $2 trillion milestone, having first achieved a $1 trillion market cap in 2018. The company's success can be attributed to its continued innovation and focus on emerging technologies like generative AI. As Amazon continues to evolve and adapt to the changing landscape of tech, its market value is likely to reflect its ongoing success in the industry.