NEW YORK (AP) — Amazon joined the exclusive $2 trillion club Wednesday after Wall Street investors pushed the value of the e-commerce giant's stock past that threshold.
Shares in Amazon.com Inc. finished the day up almost 4%, giving the Seattle-based company a stock market valuation of $2.01 trillion. Its stock has gained 52% in the past 12 months, partly driven by enthusiasm for the company's investments in artificial intelligence.
Amazon now joins Google's parent Alphabet, software behemoth Microsoft, iPhone maker Apple and chip maker Nvidia among companies with valuations of at least $2 trillion.
Last week, Nvidia hit $3 trillion and briefly became the most valuable company on Wall Street. Nvidia's chips are used to power many AI applications and its valuation has soared as a result.
Amazon has also been making big investments in AI as global interest has grown in the technology. Most the focus has been on business-focused products, including AI models and a chatbot called Q, which Amazon makes available to businesses that use its cloud computing unit AWS.
“A big part of the valuation boost has been cloud and AI,” said Wedbush tech analyst Dan Ives. “Amazon is going to be a major player in the AI revolution.”
In April, Amazon CEO Andy Jassy said that AI capabilities have reaccelerated AWS’ growth and that it was on pace for $100 billion in annual revenue. The unit's growth slowed last year as companies cut down on costs amid high inflation.
Amazon has also invested $4 billion in the San Francisco-based AI company Anthropic to develop so-called foundation models that underpin generative AI systems. In addition, Amazon makes and designs its own AI chips.
Outside of its cloud business, Amazon has cut costs significantly since late 2022, laying off more than 27,000 corporate employees across several divisions. It reported revenue and profits for the first quarter of the year, aiding by growth in AWS as well as its core retail business and advertising. All those things are boosting investor sentiments, said Neil Saunders, the managing director at GlobalData Retail.
“Certainly, there are downsides, but these are mostly external — such as the threat from the FTC,” Saunders said, alluding to the federal agency's antitrust lawsuit against the company.
But, he said, “investors see these clouds as a long way off so they are not dampening the current valuation.”
FILE - An Amazon Prime truck is seen on April 5, 2024, in Portland, Ore. Amazon hits a stock market valuation of $2 trillion for the first time on Wednesday, June 26, 2024.(AP Photo/Jenny Kane, File)
NOUAKCHOTT, Mauritania (AP) — Mauritanians went to the polls on Saturday to elect their next president, with the incumbent Mohamed Ould Ghazouani widely expected to win after positioning Mauritania as a strategic ally of the West in a region swept by coups and violence.
Ghazouni, who is seeking reelection on the pledge of providing security and economic growth, is a former army chief and the current president of the African Union. He came to power in 2019 following the first democratic transition in the country’s history, and on Saturday promised to respect the results of the vote.
“The last word belongs to the Mauritanian voters," Ghazouni said after voting in Ksar, the suburb of the capital. “I commit myself to respecting their choice.”
Although his opponents accused him of corruption and mismanagement, he remains popular among Mauritanians who see him as a beacon of stability. The vote is taking place in a particularly tense regional climate, with Mauritania’s neighboring countries shaken by military coups and jihadi violence.
“We must not let ourselves be fooled by the slogans of the candidates who are not reassuring,” said Marième Brahim, a 38-year-old company executive, who voted for Ghazouni. “Mauritania must vote for continuity and stability and its security in a troubled environment and it is not these candidates without experience in governance who will give us confidence.”
Two million people are eligible to vote in a nation of 5 million. Ghazouani is facing six opponents, including an anti-slavery activist, leaders of several opposition parties and a neurosurgeon, who accused the government of corruption and clientelism.
Mauritania is rich in natural resources such as iron ore, copper, zinc, phosphate, gold, oil and natural gas. It is poised to become a gas producer by the end of the year, with the planned launch of the BP-operated Greater Tortue Ahmeyin offshore gas project at the border with Senegal.
Yet almost 60% of the population live in poverty, according to the United Nations, working as farmers or employed in the informal sector. With few economic opportunities for young people at home, many are attempting to cross the Atlantic to reach Europe, and some are even trying to get to the United States through Mexico.
Mohamed Lemine Ould Moktar, 45, who voted for an opposition candidate, has two young sons who remain unemployed despite having university diplomas.
″I just voted for change, we have had enough of identical regimes which squander the people’s assets and maintain corruption," said Ould Moktar. “Just look at more than 40,000 young Mauritanians take the path of immigration to the United States by jumping the border wall between Mexico and the United States. This is why I am voting for change.”
Saturday's vote was unfolding peacefully, according to observers, with the polls due to close at 7 p.m. Partial results were expected on Sunday.
“We have not noticed any anomalies or problems," declared Taghiyouallah Ould Ledhem, spokesman for CENI, the independent electoral commission. "People are voting smoothly and easily, we have not received any complaints so far.”
AP Africa news: https://apnews.com/hub/africa
An electoral banner for Mauritanian president Mohamed Ould Ghazouani, is seen ahead of the presidential elections in Nouakchott, Mauritania, Tuesday, June 25, 2024. Banner in Arabic reads "I will work on building a complete sewage network in Nouakchott." (AP Photo/Mamsy Elkeihel)
A supporter of presidential candidate Biram Ould Dah Ould Abeid, holds his poster during his campaign rally ahead of the presidential election end of the month, in Nouakchott, Mauritania, Monday, June 24, 2024. (AP Photo/Mamsy Elkeihel)
Presidential candidate Biram Ould Dah Ould Abeid, center, takes part in a rally among his supporters, ahead of the presidential election end of the month, in Nouakchott, Mauritania, Monday, June 24, 2024. (AP Photo/Mamsy Elkeihel)
An electoral banner for Mauritanian president Mohamed Ould Ghazouani is placed during a campaign rally, ahead of the presidential elections in Nouakchott, Mauritania, Wednesday, June 26, 2024. Banner in Arabic reads: "Safe choice." (AP Photo/Mamsy Elkeihel)
Mauritanians vote for president with the incumbent ally of the West favored to win
Mauritanians vote for president with the incumbent ally of the West favored to win
Women sit behind an electoral banner for Mauritanian president Mohamed Ould Ghazouani, during a campaign rally ahead of the presidential elections in Nouakchott, Mauritania, Wednesday, June 26, 2024. The banner reads: "There is no place for people embezzling public funds anymore." (AP Photo/Mamsy Elkeihel)
