Is Amazon On Track to $3 Trillions Club?
Is Amazon On Track to $3 Trillions Club?
Amazon is hitting $2 trillions market capitalization soon. The next question is when will it reach $3 trillions?
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Amazon.com, the e-commerce juggernaut, is rapidly closing in on a market value of $2 trillion. But the tech giant's sights are set even higher, as it eyes a coveted spot in the exclusive $3 trillion club currently occupied by only a few industry titans.
What's Happening?
Amazon's market value currently stands at $1.925 trillion, with its stock trading around $185. To reach the $3 trillion milestone, the company would need its stock price to surge to approximately $288, and its price-to-earnings ratio to climb to an impressive 63 times its estimated 2024 earnings of $4.57 per share. This valuation target would mark a significant departure from the company's last P/E ratio above 63, which was recorded on November 11, 2022, at $64.66.
The path to this lofty goal is paved with impressive growth projections. After posting losses in 2022, Amazon is expected to earn $2.90 per share in 2023 and $4.57 per share in 2024. The following year, 2025, could see the company's earnings soar to $5.84 per share, representing a robust 28% growth rate.
Why Does It Matter?
If Amazon can successfully navigate this trajectory, it could soon join the ranks of the tech titan trifecta, a highly exclusive club currently occupied by the likes of Microsoft, Nvidia, Apple, and Alphabet. Reaching a $3 trillion market value would cement Amazon's status as a true industry juggernaut, solidifying its position as one of the most valuable companies in the world.
Moreover, this achievement would likely fuel further investor enthusiasm and confidence in the company's long-term growth prospects, potentially driving its stock price even higher and unlocking new avenues for expansion and innovation.
Summary
Amazon's quest to join the $3 trillion club is a testament to its relentless innovation, diversified revenue streams, and the market's unwavering appetite for growth. With impressive earnings projections, strong quarterly results, and bullish analyst sentiment, the e-commerce behemoth appears well-positioned to make a bold leap into this rarified realm, further cementing its status as a true tech titan.
Disclaimer: This article constitutes the author’s personal views and is for entertainment and educational purposes only. It is not to be construed as financial advice in any form. Please do your own research and seek advice from a qualified financial advisor. From time to time, I have positions in all or some of the mentioned stocks when publishing this article. This is a disclosure - not a recommendation to buy or sell stocks.