Amazon.com Inc. hit a milestone Tuesday that it hadn’t reached in 19 months.
Shares of Amazon
AMZN,
rose 2.2% on Tuesday, closing at $145.80, their highest close since April 21, 2022, when they ended the session at $148.30.
With that closing price, Amazon again surpassed a $1.5 trillion valuation, according to Dow Jones Market Data.
The rally in Amazon shares Tuesday came on a strong day for the broader market, and for technology shares, with the Nasdaq Composite Index
COMP
up about 2%. Amazon’s stock has notched gains in 10 of the past 13 sessions.
Read: Nvidia’s stock tracks toward new record high as AI fervor keeps building
Amazon has struck a deal with Snap Inc.
SNAP,
to let users buy certain products within the Snapchat app, according to reports Tuesday. That partnership adds to others Amazon has with Meta Platforms Inc.
META,
and Pinterest Inc.
PINS,
noted Evercore ISI analyst Mark Mahaney.
“These partnerships are a step for Amazon to solve its supply problem, while broadening its retail network,” Mahaney wrote, referring to the fact that Amazon’s advertising demand outstrips the ad inventory it has available on its e-commerce platform.
Read: Amazon just taught Wall Street a new word — and it’s a good one for the bulls
The recent partnerships should ” At the very least, we think AMZN’s META/SNAP partnerships “drive greater retail sales back to Amazon, and in some way, fend off the competitive risk from TikTok Shop, Temu/Shein, etc. by taking a bite of the (we think) growing Social Commerce shopping intent,” Mahaney continued.
Amazon’s stock is up 73% so far this year, as the S&P 500
SPX
has gained 17%.
Read the full article here
