Seattle, Washington – Amazon.com Inc. shares reached their highest close in over two years on Friday, continuing their upward momentum. The e-commerce giant’s stock rose 2.7% during the session, ending the day at $174.45, marking its best performance since December 9, 2021.
The surge in Amazon’s stock price has propelled the company to hold a place in the top four most valuable U.S. companies by market capitalization. The recent positive momentum for Amazon shares has allowed the company to maintain its position in the top rankings, even as other competitors like Nvidia Corp. vie for a spot in the top tier.
Despite mixed reactions from Wall Street to earnings reports from major technology companies, Amazon’s results have been well received. Analysts are optimistic about the company’s future, with UBS analyst Stephen Ju predicting that the challenges that have constrained Amazon’s growth in recent years will dissipate throughout 2024.
Amazon’s strong performance has been a significant driver of earnings growth for the S&P 500 consumer discretionary sector. The company’s quarterly earnings per share grew to $1 in the latest quarter, a significant increase from 3 cents the previous year. Without Amazon, the consumer discretionary sector’s expected growth in earnings per share for the fourth quarter would swing to a decline of about 1%, according to FactSet.
As Amazon continues to demonstrate its resilience and growth potential, investors and analysts are closely monitoring its performance and its impact on the broader market. With its recent success, Amazon is poised to remain a dominant force in the e-commerce and technology industries.