"Just 1.6% More to Go"…Amazon's Market Cap Nears $2 Trillion

Amazon Chairman Bezos Photo by Yonhap News

The world's largest e-commerce company, Amazon, is on the verge of joining the $2 trillion market capitalization club for the fifth time.

On the 9th (local time) at the New York Stock Exchange, Amazon's stock price surged to $191.7 during the session, surpassing $190 for the first time. The closing price that day was $189.50, up 0.8% from the previous day.

Amazon's market capitalization based on the closing price reached $1.97 trillion, just shy of $2 trillion. If the stock price rises by 1.6% from the current level, the market cap will hit $2 trillion. This would make Amazon the fifth company to join the $2 trillion club. The $2 trillion club was previously joined in order by Apple, Microsoft (MS), Nvidia, and Alphabet (Google's parent company).

Amazon reached a $1 trillion market cap in September 2018, second only to Apple. If it reaches $2 trillion, its market value will have doubled in 5 years and 9 months.

Since the first trading day of this year, Amazon's stock price has jumped 26%, outperforming other big tech companies such as Apple (-0.5%), MS (11%), and Alphabet (23%) during the same period. This is attributed to double-digit revenue growth year-over-year and significant improvements in net profit due to restructuring and other factors. Amazon's Q1 revenue announced on the 30th of last month increased by 12.5% compared to a year ago, and net profit surged more than threefold.

Amazon is also capitalizing on the AI boom. In Q1, Amazon Web Services (AWS), the cloud division, saw a 17% increase in revenue, surpassing market expectations of 12%. AWS accounted for 62% of the operating profit ($15.3 billion).