Amazon scores record valuation for the first time since 2021

By Emily Bary

Amazon's stock itself isn't yet in record territory

Amazon.com Inc. is on pace to finish the trading day with a record-high market capitalization, which would be its first in nearly three years.

With Amazon's stock (AMZN) up 1.0% in Wednesday trading to a recent $182.44, its market capitalization would be $1.89 trillion if those gains carried through to the close. The company had a market value of $1.88 trillion on July 8, 2021, which is when it achieved the prior record.

Amazon's stock needs to close above $181.166 for the e-commerce giant to set a new market-cap record, according to Dow Jones Market Data. It needs to top $182.914 to achieve a $1.9 trillion market capitalization and $192.541 to hit the $2 trillion mark.

While Amazon's valuation is on pace to notch a new record, the shares themselves aren't yet on track to notch a new high. They need to surpass $186.57 to do so.

The discrepancy stems from the fact that Amazon's split-adjusted share count has increased by 316.1 million, or 3.1%, since the company last racked up a market-value record.

Amazon's stock has had a good start to the year after performing strongly in 2023. Shares are up nearly 20% so far in 2024, outpacing the S&P 500's SPX 9% ascent. The stock advanced just over 80% in 2023.

The company has seen its Amazon Web Services cloud-computing business energized by artificial-intelligence demand, and its retail business is showing improved margins on the heels of changes to its fulfillment networks.

Wells Fargo analysts named Amazon shares a "high-conviction" second-quarter pick earlier this week, flagging further retail margin-expansion opportunity thanks in part to a shift in the fee structure for sellers using Amazon's fulfillment services.

The company also stands to benefit from growth in the TV advertising market, Wedbush analysts said earlier today.

-Emily Bary

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04-03-24 1235ET

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