Amazon’s market value surpassed the A$3.01 trillion mark for the first time ever this week, strengthened by the progress it is making in developing its AI capabilities and also a potential interest rate cut by the Federal Reserve.
The stock closed up nearly 4 per cent on Wednesday at a record A$291.28 making it only the fifth company to have a market cap larger than A$3.01 trillion.
Its peers in the group include tech companies Microsoft, Apple, Nvidia and Alphabet – with Nvidia going on to smash through the A$4.51 trillion mark earlier this month, making it the most valuable company in the world.
Amazon is now the fifth biggest US company by market value. Shares of Amazon, which were added to the blue-chip Dow Jones Industrial Average index in February, have rallied around 27 per cent this year alone.
Apart from its e-commerce business, its Amazon Web Services division is also the largest cloud services provider in the world.
In a push towards keeping pace with the AI development strides that its peers are making, the company has also invested in AI startup Anthropic and robotics firm Figure.
It’s taken Amazon a while to go from the A$1.5 trillion mark to the A$3.01 trillion figure. Its market cap reached A$1.5 trillion in 2020, the second time in its history after reaching that figure for the first time in 2018.
Under CEO Andy Jassy, Amazon has implemented a multiyear plan to reduce its spending which has also resulted in several thousand jobs being cut with some estimates indicating that around 27,000 Amazon employees were affected by its cost-cutting measures.
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