What happened
Actions of Amazon.com (NASDAQ: AMZN) It rose 5.8% on Monday to a new all-time high of $ 3,057. At that price, the cloud-computing and e-commerce titan’s market capitalization now exceeds a staggering $ 1.5 trillion.
And that
China’s positive economic news likely contributed to gains in Amazon’s stock price. Many of Amazon’s third-party merchants source their products from Chinese manufacturers. Shipping delays have weighed on the sales and profits of these merchants, and, by extension, on Amazon, in the past few weeks, and returning to more normal shipping times will be a welcome relief to both businesses and customers. .
Amazon shares rose above $ 3,000 for the first time on Monday. Image source: Getty Images.
From a longer-term perspective, what drove Amazon’s shares to such staggering heights is its dominance of not just one, but two massive and fast-growing markets: e-commerce and cloud computing. Amazon controls most of the online retail market in the US and in many other countries, and Amazon Web Services is the clear leader in the global cloud infrastructure market. Together, these huge industries are projected to generate approximately $ 7 trillion in annual revenue by 2023.
Now what
Amazon stocks are a prime example of one of the most important lessons an investor can learn: Winners tend to keep winning. Since its initial public offering (IPO) in 1997, there has never been a bad time for long-term investors to buy Amazon stock. Even today, this incredible stock is still an exceptional investment.
