FX.co ★ Amazon shares hit new high

Amazon’s stock is back in the game! According to Bloomberg, on November 6th, Amazon shares reached a record high. This confirmed the fact that big tech companies are still a favorite among investors.

Stocks of Amazon, a company focused on e-commerce and cloud computing, jumped by 3.8%, reaching $207.55. As a result, the price surpassed the previous peak held since July 2024, climbing by 25% from the August low. Overall, shares of the tech giant have gained 32% this year, outpacing the Nasdaq 100 index by 23%. The global stock market also rallied on news of Donald Trump’s victory in the US election.

Amazon’s stock surge is fueled by strong quarterly results. The company delivered outstanding performance in its Amazon Web Services cloud division. In the third quarter of 2024, Amazon’s total sales reached $158.9 billion.

Additionally, the company provided an optimistic outlook for the near future. “Amazon is firing on all cylinders. People might have had some skepticism about its cloud, e-commerce, or advertising businesses, but all three seem to be working and that’s creating a lot of value,” Mike Bailey, Director of Research at FBB Capital Partners, said.

Bloomberg estimates Amazon shares remain a top choice. Most Wall Street analysts (94%) recommend buying them, with many experts considering Amazon undervalued. Given this, specialists see a high potential for further growth in Amazon's stock over the next 12 months.