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

What happened

Shares of Amazon.com (NASDAQ: AMZN) climbed 5.8% on Monday to a new high of $ 3,057. At that price, e-commerce and the cloud computing titan’s market value now exceed a staggering 1.5 billion dollars.

So what

Positive economic news from China probably contributed to the gains in Amazon’s share price. Many of Amazon’s third-party merchants purchase their goods from Chinese manufacturers. Shipping delays have weighed in on these merchants’ – and by extension Amazon’s – sales and profits in recent weeks, and a return to more normal delivery times will be a welcome relief for both businesses and customers.

A person points to an upwardly sloping digital chart.

Amazon shares climbed over $ 3,000 for the first time on Monday. Image source: Getty Images.

From a longer perspective, what drives Amazon’s share to such astonishing heights is its dominance of not one, but two massive and fast-growing markets: e-commerce and cloud computing. Amazon controls most of the online retail market in the United States and many other countries, and Amazon Web Services is the clear leader in the global cloud infrastructure market. Together, these huge industries are estimated to generate approximately $ 7 trillion in annual revenue in 2023.

Now then

Amazon’s stock is a prime example of one of the most important lessons an investor can learn: Winners tend to keep winning. Since the IPO began in 1997, it has never been a bad time for long-term investors to buy shares in Amazon. Even today, this incredible stock remains an outstanding investment.

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