Inc. shares continued their upward trend on Friday, reaching their highest closing price in more than two years. The e-commerce giant's stock rose 2.7% during Friday's session, finishing the day at $174.45. This marks the best ending level since December 9, 2021, when Amazon's stock closed at $147.17, according to Dow Jones Market Data.

Overtaking Competitors

Last week, Amazon briefly surpassed Alphabet Inc. as the third most valuable U.S. company by market capitalization, but it has since slipped back to the fourth spot. However, Amazon's recent momentum has allowed the company to maintain its position in the top four, even as Nvidia Corp. poses a threat.

Alphabet currently holds a market cap of $1.86 trillion, compared to Amazon's $1.81 trillion and Nvidia's $1.78 trillion.

Positive Earnings Results

While Wall Street had mixed reactions to technology companies' earnings this quarter, Amazon's results were well received. The company's strong performance has helped alleviate concerns over e-commerce deceleration and margin compression in the coming years.

According to UBS analyst Stephen Ju, potential obstacles that previously hindered Amazon's stock, such as e-commerce deceleration and AWS deceleration, are expected to dissipate throughout 2024.

Driving Earnings Growth

Amazon has played a significant role in driving earnings growth for the S&P 500 consumer discretionary sector. In the latest quarter, the company's quarterly earnings per share grew from 3 cents to $1, demonstrating its positive impact. FactSet predicts that, without Amazon, the consumer discretionary sector would experience a decline of approximately 1% in fourth-quarter EPS growth, contrasting with the expected 33% growth with Amazon included.

Amazon's continuous rise in stock value paints a promising picture for the company's future and its position within the market.

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