After Nvidia had been battling with Apple and Microsoft to get the world’s most valuable company title, Amazon also reached a milestone. While those three tech giants test the $3 trillion market, the e-commerce giant touched $2 trillion on Wednesday.
AMZN – Daily Chart
The price of AMZN surged above the April high and the previous all-time high from May. Those levels are now support for the stock.
Amazon’s stock was higher by over 3% on Wednesday following its announcement of the Prime Sales event for 2024 on Tuesday. The company said it will host the annual event for members on July 16- 17.
Investors will be looking for analysts’ expectations for the event after day one last year, when Amazon saw its largest sales day ever. More than 375 million items were sold on the e-commerce platform.
Analysts will also look at the backdrop of recent higher inflation and interest rates as a possible driver for bargain hunters.
A Bank of America note to clients reiterated a buy rating on Amazon’s shares, saying the retailer is on track to deliver more than 9 billion packages globally in 2024. Amazon “could now be the largest US shipper, ahead of UPS,” analysts wrote. “Delivery speed is also dramatically improved, with nearly 25% of estimated units now delivered same or next day.” The investment bank raised its price target to $220 from $210.
BofA also said the retailer had cut costs “to take advantage of the AI frenzy better” At the same time, its Amazon Web Services segment “has shown signs of quickening growth. Analysts also said that the company still has a “runway ahead for efficiency gains.”
Amazon joined Google’s parent company, Alphabet, at the $2 trillion market cap level.
Investors will now focus on Amazon’s Prime Day, which could make or break the recent high price.
