Amazon shares rise to record high, crossing $2 trillion valuation

Shares of Amazon are catching a bid today, rising 3.1% to an all time high. The climb above $192 along with 10.406 billion shares outstanding puts the company above a $2 trillion market cap for the first time.

That’s against earnings guidance of $10-14 billion in the current quarter and consensus earnings of $5.74 next year. That puts the forward P/E at about 33.5x, which isn’t crazy in a world that’s AI-obsessed.

Now, is Amazon an AI company? I might argue it’s the AI company in the long run. The real game-changer with AI is that it unlocks robotics. With 1.52m employees, that’s a gigantic potential source of savings for a company on track for $700 billion in annual revenue. Combine it with self-driving delivery, or drones and the downstream contracted delivery costs could also drop dramatically.

Factor in growth in advertising, AWS, media and a formidable moat, and I can see the case for further gains from here. Besides, look at that chart, whic is breaking out after years of consolidation.

This article was written by Adam Button at www.forexlive.com.