Why Amazon Stock hit a record higher than $ 3,000 today


What happened

Actions of Amazon.com (NASDAQ: AMZN) climbed 5.8% on Monday to a new high of $ 3,057. At this price, the market capitalization of the e-commerce and cloud titan now exceeds $ 1.5 trillion.

So what

Positive economic news from China has likely contributed to the rise in Amazon’s share price. Many third-party Amazon merchants source from Chinese manufacturers. Delays in delivery have weighed on sales and profits for these merchants – and, by extension, Amazon – in recent weeks, and a return to more normal delivery times will be a welcome relief for businesses and customers.

Amazon’s title surpassed $ 3,000 for the first time on Monday. Image source: Getty Images.

From a longer-term perspective, what has pushed Amazon’s shares to such astounding heights is its dominance not in one, but in two massive and rapidly growing markets: e-commerce and cloud computing. Amazon controls the lion’s share of the online retail market in the United States and many other countries, and Amazon Web Services is the undisputed leader in the global cloud infrastructure market. Together, these huge industries are expected to generate about $ 7 trillion in annual revenue by 2023.

Now what

Amazon’s action is a great example of one of the most important lessons an investor can learn: Winners tend to keep winning. Since its IPO in 1997, there has never been a bad time for long-term investors to buy stocks from Amazon. Even today, this incredible stock remains an exceptional investment.


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