Amazon's stock price reached an intraday all-time high on Wednesday, driving the Nasdaq 100 index to also hit a historical peak. Media analysis suggests that this once again indicates that large tech companies remain the darlings of investors in the market.
After the U.S. stock market opened on Wednesday, Amazon's stock price rose nearly 3.3% to $206.08, surpassing its highest point since July, before narrowing the gain to around 2%. Since the low in August, Amazon's stock price has increased by more than 25%, with a cumulative rise of 32% this year, outpacing the Nasdaq 100 index's 23% increase. Amazon has particularly stood out in the general market rally following the U.S. elections.
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Media reports indicate that Amazon's recent strong performance is attributed to the company's robust quarterly earnings report, especially with significant growth momentum in the Amazon Web Services (AWS) cloud division, which is expected to benefit from long-term tailwinds related to AI. Additionally, Amazon has made positive sales forecasts for the holiday season.
Mike Bailey, Director of Research at FBB Capital Partners, stated,
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&#34;Amazon is performing excellently across the board. While there may be skepticism about its cloud business, e-commerce, or advertising, all three are operating normally, bringing tremendous value. The company's focus on costs and profitability makes it appear inexpensive even when the stock price hits new highs. A company that exceeds expectations, grows rapidly, and is undervalued is naturally one we want to continue to increase our holdings in.&#34;
</blockquote>
Moreover, the improvement in profitability has alleviated concerns about Amazon's valuation. Amazon's price-to-earnings ratio is 29 times, which, although higher than the Nasdaq 100 index's average, is significantly lower than the stock's average P/E ratio of over 53 times over the past decade.
Currently, Amazon remains the consensus favorite on Wall Street, with about 94% of analysts recommending buying the stock. Furthermore, the current stock price is still about 15% below the average target price set by analysts, indicating that market institutions believe there is potential for the stock price to continue rising over the next 12 months

AMZN

On Wednesday, Amazon's maximum increase approached 3.3%, driving the Nasdaq 100 index to also reach a historic high. Analysts stated that despite reaching a historic high, Amazon's stock price valuation remains relatively low

- Amazon's stock reached an all-time intraday high on Wednesday, contributing to a record high for the Nasdaq 100 index, indicating continued investor favor for large tech companies.  
- The stock rose nearly 3.3% to $206.08, marking a 25% increase since August and a 32% rise this year, outperforming the Nasdaq 100's 23% gain.  
- Analysts attribute Amazon's strong performance to robust quarterly earnings, particularly in its cloud division, and positive sales expectations for the holiday season, with 94% of analysts recommending the stock as a buy.

Large tech stocks are still the favorites! After nearly four months, the Nasdaq 100 and Amazon hit all-time highs